The Victorian government’s “Cheaper, Cleaner, Renewable: Our Plan for Victoria’s Electricity Future’” roadmap sets out a plan to deliver the future energy systems needed to reach the Australian state’s 95% renewable generation target by 2035 and net-zero target by 2045.
Predicting electricity use to increase in the next decade by at least 50% due to population growth and electrification needs, the state will seeks to unlock around 25 GW of new rooftop solar, energy storage, offshore wind and onshore renewables.
An estimated AUD 35 billion ($23.6 billion) in capital investment will be required for future investment, building on a tripling of renewable energy since 2014, which now generates 39% of the state’s power – more than its three remaining coal-fired generators combined.
Victorian Energy and Resources Minister Lily D’Ambrosio said the government will deliver an affordable, reliable and secure electricity system and the consolidated plan will ensure community and industry are at the centre of an orderly transition.
“We mean business. We’re powering ahead with our big renewable energy build and creating and maintaining the right conditions for renewables investment,” D’Ambrosio said.
Divvied into four pillars, pillar one outlines a renewables “big build” supporting grid-scale and rooftop solar above 9.6 GW by 2025 or roughly 27 million solar panels. The second pillar addresses measures to empower households and businesses to lower energy bills.
Pillar 3 outlines the transition away from fossil fuels and pillar four, creating jobs, skills and supply chains in relation to the state’s energy transition.
The roadmap refers to the Australian Market Energy Operator (AEMO) 2024 Integrated System Plan projection that Victoria’s installed capacity will more than double by financial year 2036 to accommodate demand growth and address the exit of 4.8 GW of coal-fired power.
Victoria has legislated battery storage targets of at least 2.6 GW by 2030 and 6.3 GW by 2035.
The government anticipates that by July 2035, the state’s installed capacity will be 42.2 GW, of which 12.6 GW is distributed solar, 3 GW utility solar, 4.1 GW utility storage, 2.9 GW coordinated and 1.5 GW passive distributed storage.
As of July 2024, 4,847 MW of small-scale rooftop solar capacity producing 9% of the state’s 2023/2024 electricity generation was installed, and 537 MW of battery storage capacity commissioned.
Approximately 28% of Victorian homes have rooftop solar, and by 2025, 100 neighbourhood battery projects will be completed, as will 45,000 social housing energy efficiency upgrades by 2027.
