Yesterday saw two important renewable energy related announcements from the Victorian and South Australian Governments.
In Victoria, Premier Daniel Andrews and Minister for Energy, Environment and Climate Change Lily D’Ambrosio announced a new Victorian Renewable Energy Target. The target will see 25 per cent of electricity generated in the state sourced from renewables by 2020, rising to 40 per cent in 2025.
This will mean by 2025, up to 5.4 gigawatts of new large-scale renewable energy capacity will be built in Victoria. This rollout would represent an estimated $2.5 billion investment; 4000 additional jobs during the expected peak year of construction (2024) and a 12 per cent reduction in electricity sector greenhouse emissions by 2034-35.
“The world is shifting to renewable energy – it creates jobs, drives growth, and protects our environment – and Victorians want to be at the forefront of that,” said Premier Andrews.
The Premier also announced an ACT-type auction scheme for renewable energy projects.
Minister D’Ambrosio said by making Victoria’s scheme complementary to the Commonwealth’s Renewable Energy Target, it was “saving the RET”.
“Investors have lost faith in the national target, but we are restoring the confidence needed to invest,” stated Ms. D’Ambrosio.
Across the border in South Australia, which has already eclipsed 40% renewable energy, the State Government wants greater access to other states to export its green power to, and to import baseload power from.
“It’s important that as a nation we create an energy network that allows greater access for consumers to South Australia’s renewable energy endowment,” said South Australian Premier, Jay Weatherill.
Premier Weatherill stated consumers across the country would benefit from greater interconnection as it would foster increased competition between wholesale suppliers.
The 2016/17 State Budget will include $500,000 towards a feasibility study to explore options for greater energy interconnection with eastern states. This would be in addition to the upgrade of the Heywood interconnector between South Australia and Victoria that is due to be completed in August this year.
“This study will look at how we can better connect with Eastern markets to gain greater access to baseload power and find new markets for the incredibly cheap renewable energy generated in South Australia,” said Energy Minister Tom Koutsantonis.
