The Dan Andrews-led Victorian Labor government’s re-election campaign has said it will bring back government ownership of energy, by reviving the State Electricity Commission (SEC) as an active energy market participant to build new renewable energy projects.
Coupled with the public ownership plans is a new renewable energy target of 95 per cent by 2035, all but completing Victoria’s exit from coal.
Under the plan, the state government will hold a controlling interest in new energy projects as renewables replace coal, with Labor making an initial investment of $1 billion to deliver 4.5 gigawatts of power – the equivalent replacement capacity of the Loy Yang A power station.
Professor Ariel Liebman, director of the Monash Energy Institute, said the Victorian Labor government had made an exceptionally exciting set of climate change mitigation-related commitments.
Liebman continued: “The most significant action we can take now is to accelerate action to ensure temperature increases are limited to 1.5 degrees, and to invest in large-scale renewable energy sources and the grid infrastructure to connect them.
“The announcement of 95% renewables by 2035, 65% emission reductions by 2030 and 70-80% emissions reductions by 2035 are well aligned with this objective.
“The proposed approach is extraordinary considering Victoria is the state that pioneered market reform and privatisation.
“The setting up of a dedicated Victorian government funded and administered energy company, named after the State Electricity Commission Founder and Chairman Sir John Monash, is a bold move. that can build and operate renewable electricity is a bold move.
“It is a recognition that the current National Energy Market frameworks are not adequate to the rapid technological changes and economic complexity of investing in a high renewables grid.
“Despite much press to the contrary, Australia is already on the forefront of the grid transformation.
“With 25% of Australia’s electricity generated by wind plus solar, both in the National Electricity market and the Western Australian Grid.
“This means the Australian Energy Market operator is currently managing the highest penetration of these new technologies of any continental scale power system.
“If these new commitments are followed through they will truly accelerate Victoria and Australia towards becoming global leaders in grid integration of wind and solar energy.
“This is not without its challenges but solving these technical and market design hurdles will provide an international export opportunity for research and development knowhow.”