Victoria’s transition to renewable energy will soon be enshrined in legislation with the Labor Government setting new renewable energy targets of 25 per cent by 2020 and 40 per cent by 2025. The state government declared it is the first time such ambitious renewable energy targets have been enshrined in legislation anywhere in Australia, and accompanying the power of renewable energy is the prospect of driving down prices, attracting billions of dollars of investment and creating thousands of local jobs. As we like to say in the industry, what’s not to like?

Premier Daniel Andrews joined Energy Minister Lily D’Ambrosio to announce the introduction of legislation for Victorian Renewable Energy Targets (VRET), the largest renewable energy auction in Australia and the awarding of contracts for two large-scale solar plants to power Melbourne’s tram network.

Importantly, the VRET will cut the average cost of power for Victorians by around $30 a year for households, $2,500 a year for medium businesses and $140,000 a year for large companies, while driving a 16 per cent reduction in Victoria’s electricity sector greenhouse gas emissions by 2034-35.

The competitive VRET auction for up to 650 MW of renewable energy capacity will provide enough electricity to power almost 400,000 households – a large swag of Victoria’s population.

This first auction is expected to bring forward up to $1.3 billion of investment and create 1,250 construction jobs over two years and 90 ongoing jobs.

Premier Daniel Andrews said “More renewable energy means more jobs for Victorians – that’s why we’re setting these ambitious targets and promoting investment in this growing sector.

“Renewable energy creates jobs, drives growth, and protects our environment – and most importantly, helps drive down power prices for Victorian households and businesses.”

Overseeing developments has been Energy Minister Lily D’Ambrosio who declared “The renewable energy sector will now have the confidence to invest in renewable energy projects and the jobs that are crucial to Victoria’s future.”

She added that government investment would be capped “to ensure the best value for money for Victorian taxpayers”.

The Victorian Government has also announced the winners of a tender to help build around 138 MW of new large-scale solar projects to power Melbourne’s tram network, with Bannerton Solar Park in the state’s northwest expected to provide 100 MW of solar powered electricity.

The Numurkah Solar Farm near Shepparton is expected to generate 38 MW.

This will bring forward an additional investment of $198 million and generate around 325 jobs in regional Victoria during construction.