Energy Consumption and Electricity
The Victorian Government has been supporting Victoria’s energy transition by increasing the supply of renewable energy and subsequently reducing Victoria’s reliance on fossil fuels. Key Victorian Government actions to support the state’s energy transition include:
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allocating $122 million in the 2017–18 Victorian budget for projects to upgrade energy system
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legislating for an emissions reduction target of net-zero greenhouse gas emissions by the year 2050, in the Climate Change Act 2017. Interim targets to assist with the end target will come into effect from 2021.
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working towards VRETs (to generate 25% of Victoria’s electricity from renewable energy by 2020 and 40% by 2025), legislated in the Renewable Energy (Jobs and Investment) Act 2017. The government’s work on these targets includes $146 million in investment through the Renewable Energy Action Plan.
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using the government’s energy purchasing power to source renewable energy certificates from new wind and solar farms in Victoria – bringing forward around 351 MW of new renewable capacity, including 35 MW to match the electricity used by Melbourne’s tram network.
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entering a support agreement with Neoen Australia to deliver the 200 MW Bulgana Green Power Hub project, a major new wind farm with battery storage in Stawell. The wind farm is due to be completed by late 2019.
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launching the Victorian Renewable Energy Auction Scheme, Australia’s largest ever reverse auction, for up to 650 MW of new renewable energy generation. This Scheme supports Victoria to achieve the VRETs.
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requiring Victorian electricity retailers to offer a minimum feed-in tariff (a minimum rate that electricity retailers must pay) to households and small businesses for clean electricity exported to the grid
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releasing the New Energy Technologies – Sector Strategy (2016) which aims to position Victoria to capture new jobs arising from the energy sector’s transformation and includes $20 million for a New Energy Jobs Fund
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developing the Energy Efficiency and Productivity Strategy (2017), which outlines $55 million of investment in new and expanded action on energy efficiency and includes an aspirational energy productivity target of 50% improvement in Victoria’s energy productivity from 2015 to 2030
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legislating energy savings targets under the Victorian Energy Efficiency Target Act 2007
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strengthening the Victorian Energy Upgrades program, which, since 2009, has supported approximately 1.8 million households and 80,000 businesses to undertake energy efficiency activities – saving over 46 million tonnes of greenhouse gas emissions
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allocating $33 million to improve the energy efficiency of government buildings through the Greener Government Buildings program, which is anticipated to save 25,000 tonnes of greenhouse gas emissions annually
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assisting Victorian businesses to get expert advice on saving energy and to make capital investments to improve gas efficiency through Sustainability Victoria’s $6.1 million Boosting Business Productivity program
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supporting 50 poorly performing commercial buildings and tenancies to implement energy efficiency improvements through the Better Commercial Buildings grants program
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supporting the Victorian households most in need to undertake energy upgrades through the $17 million Home Energy Assist program
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implementing the $25 million Energy Storage Initiative, which includes funding for two large-scale storage facilities in western Victoria – one in Ballarat connected to the Ballarat Terminal Station and another connected to the Gannawarra Solar Farm.
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boosting energy productivity through the National Energy Productivity Plan 2015–2030, a COAG-led national plan to achieve a 40% improvement in energy productivity in Australia by 2030.
Transport and Energy
The Commonwealth and Victorian Governments are investing over $38 billion in road and rail transport infrastructure projects to improve the reliability and efficiency of the Victorian transport system. The extent to which these projects will change Victoria’s transport energy use or the carbon intensity of transport is not clear. Many of Victoria’s major transport infrastructure projects involve extending or improving freeways; these are likely to support and encourage increased use of internal combustion engine (ICE) vehicles as Victoria’s primary transport option.
The Parliament of Victoria Economy and Infrastructure Committee published the report from their Inquiry into Electric Vehicles in May 2018. This was not associated with any project funding, however, it provided important background information on the potential future for electric vehicles in Victoria.