Australia’s longest-serving energy minister, Lily D’Ambrosio, has called time on her career with the Victorian Labor party, advising her new boss, Ben Carroll, that she will not re-contest the seat of Mill Park at the election in November and will step down from the Cabinet.
The news emerged on Thursday afternoon, capping off what has been a tumultuous week for the party, with a change in leadership on Tuesday following the reluctant resignation of former premier Jacinta Allan.
D’Ambrosio, who announced her resignation alongside the state health minister Harriet Shing, has overseen one of Australia’s most ambitious and comprehensive state energy transition plans, including a legislated exit from gas in homes and targeted plans to host the nation’s first offshore wind projects.
For Australia’s nascent offshore wind sector, the timing is not ideal, with D’Ambrosio due to launch the nation’s first ever – and already delayed – auction for the first 2 gigawatts (GW) of offshore wind generation capacity in August.
But in a statement issued on Thursday afternoon, the minister said she was leaving the state well placed to continue on its decarbonisation journey.
“With our first offshore wind auction set to launch in August and Victoria now well placed to manage any further disruption to global fuel markets, I have decided that it is time to step back,” D’Ambrosio said.
“Back in 2014 not a lot of people thought about energy too much. Of course, the decade that followed changed all that. Under Labor, Victoria has led the nation, paving the way for Australia’s transition to renewable energy.
“Where Victoria has gone, the rest of country has followed. And that’s especially the case when it comes to energy and climate policy.
“From the first net zero legislation in the country, strong renewable energy laws, the Victorian Default Offer, Solar Homes, Neighbourhood batteries and of course bringing back the State Electricity Commission to help grow energy sector jobs to 68,000 by 2040 and the SEC Apprenticeship Academy that will deliver 2,000 more apprentices.
“Victoria continues to have the lowest energy prices nationally, and more and more of our energy comes from renewables. Since 2024, Labor’s policies have led to a staggering $13 billion of investment in approved renewable energy projects across the state,” D’Ambrosio said.
For what will no doubt be a nervous bunch of offshore wind developers and industry groups, D’Ambrosio had a more direct message.
“Offshore wind is crucial to Victoria’s energy reliability and affordability. It’s also crucial investment for people in Gippsland – growing the local economy and creating thousands of new jobs each year out to 2040.”
D’Ambrosio also made an effort, in her statement, to hose down any speculation that her departure is the result of party infighting or lack of support for (or from) the new regime – and to make a final pitch for Labor ahead of the state election.
“In the midst of a cost-of-living crisis and global uncertainty, families today still depend on Labor governments to fight for them,” said D’Ambrosio, who has been the state member for Mill Park since 2002.
“I know that Premier Ben Carroll values all of these things and more because he has lived challenges himself. I look forward to standing by him and the entire Labor team to earn every vote and see a Carroll Labor Government returned in November. I wish Ben all of the very best.”
“Sound policy and the power of staying the course”
Environment Victoria was quick to formally congratulate the minister for an incredible career as Australia’s “arguably most effective” climate and energy minister, noting that when she came into office in 2014, Victoria had the “dirtiest power system in the country.”
“Many thought rapid decarbonisation was next to impossible,” said Jono La Nauze, CEO of Environment Victoria. “She not only proved the doubters wrong, her reforms saved Victorian households millions of dollars in the process.
“In under 12 years, D’Ambrosio has driven pollution down and bills down, while ensuring the benefits of the energy transition were distributed equitably.
“Victoria has strong legislated targets for slashing climate pollution and switching to renewables and those targets are being achieved and beaten ahead of time.
“This is testament to strong, sound policy and the power of staying the course.”
La Nauze says a key to D’Ambrosio’s success is that she was “always a master of the evidence, taking a calm and detail-oriented approach to solving wicked problems, and always putting social equity at the heart of the solutions she developed.
“With Victoria’s renewable transformation now well underway and the cost of energy coming down, D’Ambrosio has set our state up for success. Future energy ministers now have an incredible foundation to work on as they move forward and keep tackling the ‘messy middle’ of the switch to a clean economy head on,” he wrote.
Clean Energy Investor Group chief Richie Merzian was taken back to the “dark days” when national policies were lined up against renewable energy and climate initiatives, when D’Ambrosio was still a power leader for change.
He says she was the first minister to call out the unreliability of coal fire power stations, and the need for us to prepare for their retirement.
“She was willing to take great ideas like the ACT renewable options and import them over to Victoria. She’s a huge contributor to the fact that we’re now enjoying majority renewable generation on the National Energy Market,” he told Renew Economy.
“It’s a challenging agenda, particularly in Victoria, but she’s always been up for the challenge. That challenge continues whether that’s offshore wind, whether that’s rolling out the Victoria Transmission Plan, or seeing through the retirement of Yallourn and the rest of the brown coal generators.”
“Big loss to energy transformation leadership”
Tim Buckley, director at Climate Energy Finance, says D’Ambrosio has been an “absolute powerhouse” for more than a decade, brilliantly championing the energy transition and decarbonisation.
“This is a big loss to Australia’s energy transformation leadership,” Buckley said in a statement on Thursday.
“But looking for a positive, it allows a fresh set of eyes to re-evaluate some key decisions that have been bogged down, for example a realistic re-appraisal of state targets and the roadmap to delivery in light of the massive headwinds to offshore wind, the success in CER and the cost blowouts and community opposition to Greenfield grid transmission proposals.”
In his own statement, David McElrea, the CEO of the Smart Energy Council, described D’Ambrosio’s legacy as “towering, transformative, and … extremely difficult to surpass.”
“Minister D’Ambrosio leaves behind a legacy defined by courage, clarity of purpose and a deep commitment to the people of Victoria,” McElrea said on Thursday.
“Her presence will be missed, but her impact will endure.
“She established Australia’s first Just Transition framework at Hazelwood, ensuring workers and the community were not left behind as ageing coal generation came offline.
“She led the historic revival of the Victorian State Electricity Commission, restoring public leadership in renewable energy investment and grid transformation.
“She delivered record‑breaking renewable energy targets, accelerated transmission planning, strengthened consumer protections, and positioned Victoria as a national leader in climate action.
“The renewable energy industry salutes her contribution, her leadership, and her unwavering commitment to a cleaner, fairer energy future,” McElrea said.
Vestas country head Danny Nielsen says they appreciate the support D’Ambrosio has given the industry over many years — her term as energy minister began just before plans kicked off for Golden Plains, the state’s largest wind farm to which Vestas supplied the turbines.
“We congratulate the minister on her long career in public service and thank her for her contribution and leadership to Australia’s renewable energy sector,” he told Renew Economy.
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