Victoria’s state Labor government has been warned it needs take urgent action to sustain Victoria’s renewable energy industry, amid forecasts of no new renewable projects coming online between 2022 and 2025
The warning came from Environment Victoria, which along with Friends of the Earth and the Australian Wind Alliance, has issued a policy brief that says the Victorian government’s own modelling suggests investment in new large-scale renewable energy faces a dramatic decline with zero new projects in Victoria between 2022 and 2025.
“Renewable energy has the potential to be an incredible driver of economic recovery, but right now the industry is facing collapse without government support,” said Environment Victoria Campaigns Manager Dr Nicholas Aberle.
“The first and only VRET auction in 2018 drove six new wind and solar projects, as well as new manufacturing and local employment opportunities particularly for regional communities.
“A new series of VRET auctions is urgently needed to unlock new renewable industry opportunities in the next few years.”
In June 2020, Victoria had 22 renewable energy projects either in construction or due to start soon, comprising nine solar and 13 wind projects with a combined capacity of 3255 megawatts (MW), providing more than 4000 jobs.
“But the Victorian government’s own modelling indicates that the state’s growth in renewables will stall within two years.
“The impact of stalling Victoria’s renewable industry now would be devastating both in terms of jobs and achieving our carbon pollution reduction targets,” Dr Aberle said.
The policy brief says a new VRET auction series is needed to unlock jobs and promote industry certainty.
These auctions should target projects in areas without immediate grid constraints and ensure a steady pipeline of projects with strong local community benefits.
Additional renewable energy generation will also fast-track emissions and electricity price reductions.
The policy brief suggests the Gippsland area, for example, has excess grid capacity, existing large-scale wind and solar project proposals and a regional economy calling out for new employment and investment opportunities.
Victoria boasts one of Australia’s most ambitious and progressive renewable energy transition strategies, with its state Renewable Energy Target of 50 per cent by 2030 written into law in October 2019.
Dr Aberle said “At a time when the economy is under intense strain from the COVID-19 shutdown, the benefits of supporting the renewable energy sector now would include creating much-needed new employment across Victoria, maintaining important manufacturing chains to businesses and workers, providing additional electricity generation capacity, and helping Victoria take action on climate change.
“With renewable energy jobs already at risk, there is no time to lose.
“The first of a series of three new VRET auctions should call for tenders within two months and aim to sign contracts in the first quarter of 2021.”
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