Past and future performance
A 2014 Climate Council report found Victoria and NSW were the only Australian states that had not increased the proportion of renewable energy in their electricity supplies in the previous two years.
However, the Victoria Government has since committed to strong renewable energy targets in the future, with 25% of the state’s electricity generation to come from renewable sources by 2020, rising to 40% by 2025. The government has also set a target of net zero emissions by 2050.
Any new projects using Victoria’s brown coal resources have to be consistent with Victoria’s zero emissions commitment and renewable energy targets.
How we could achieve zero net emissions
In 2017 the Victorian Government established a ‘reverse auction scheme’ to achieve its renewable energy targets. This kind of scheme has already helped the ACT meet its commitments for renewable energy.
In a reverse auction scheme, the government sets a price for energy, and organisations compete to provide the energy. Once the projects are operating, the government tops up the payments made to the organisation when energy prices are low. When prices are high, the renewable energy company pays the government the difference between the set price and the amount the energy company is paid. This gives renewable energy companies more certainty about their return on investment.
In August 2017, companies were asked to submit bids with ideas for large-scale renewable energy projects. Contracts will be awarded to projects that offer the best value for money, benefit local economies, and show high levels of community engagement.
Around 15 projects were being assessed throughout 2018.