“The SEC is back:” Victoria flicks switch on state-owned utility in push to 95 pct renewables

Victorian Labor has officially launched the State Electricity Commission, the renewables focused reboot of the publicly-owned utility that, for much of the 1900s, was the sole agency for the state’s power generation, transmission, distribution and supply.

The official launch of the new-look SEC, and the comprehensive plan that will underpin its first decade, was made on Thursday at the Careers for Net Zero Fair, in Melbourne, billed as the first such event in Australia to promote employment opportunities in the climate and renewable energy sectors.

State Premier Jacinta Allan – whose father started as an apprentice linesman at the original SEC back in 1964 – says building up the clean energy workforce will be one of the main focuses of the new SEC, alongside investing in the generation and grid infrastructure needed to meet the state’s target of 95% renewables by 2035.

“The SEC is back: we’ll invest in government-owned renewable energy, help households switch to all-electric and build the renewables workforce Victoria needs,” Allan said.

“We’re putting power back in the hands of Victorians, giving them the tools they need to lower household energy bills and make the most of the cheap renewable energy that will supply the grid.”

The launch of the SEC ones amid a renewed push by governments in states with largely privatised grids to seize back some control in the market.

In South Australia, the government is spending $593 million on a 250MW electrolyser and a 200MW hydrogen powered generator, while the NSW government has also launched its own State Energy Corporation to coordinate the development of key renewable infrastructure and storage.

Allan says the SEC’s Strategic Plan for 2023-2035, developed on recommendation from the SEC Expert Advisory Panel, sets out three priorities, including to invest an initial $1 billion in 4.5GW of new renewables capacity – 2.6GW of it between now and 2028 – with a focus on storage and onshore generation.

The premier says the SEC received more than 100 Registrations of Interest (ROI) for projects with a combined capacity of 24GW of generation and 30GW of storage capacity for its pioneer investment, to be announced before the end of the year.

The SEC will also take the reins on Labor’s Victorian Renewable Energy Target projects out to 2025 – which amount to 1.2 gigawatts of renewable energy generation in addition to the 4.5GW it is tasked with developing.

“I firmly believe that governments should have skin in the renewable game we have a responsibility to deliver for the people of the state and the citizens of the planet. And the best way to do that is to play an active role,” Allen said on Thursday.

“The key benefit we can offer here is to plug the hard-to-fill gaps in the market and also to seek out opportunities that help accelerate the energy transition.

“And commercial storage is one of those key areas that will unlock future interconnection and renewable generation investment.

“And that is why we will deliver 2.6GW renewable generation and storage in the near term, investing in two to four hour batteries which will increase in duration as coal exits and more renewables enter.”

On the more traditional utility side, the SEC will supply power to commercial and industrial customers, while also establishing a “one-stop shop” to pilot and showcase household electrification solutions, starting from next year.

But the headline announcement for was the establishment of SEC Centre of Training Excellence, which Allen says will help create 59,000 jobs – including 6,000 traineeships and apprentices – to help deliver the infrastructure and services needed to get the state to 95 per cent renewable energy by 2035.

The centre will support workforce development through three main avenues: as an employer, through attraction
and training and as an advocate for sector-wide workforce development – engaging with schools, TAFEs and industry.

“Dad worked in the industry for more than 50 years before retiring in 2015,” Allan told the audience at the jobs fair.

“Back then, for a young person, working for the SEC had been a job for life. It meant secure, stable work, the kind of work that you could build a family and a life.

“So my pitch today to anyone here who is considering their next career move or anyone else considering their next investment is the investments and the projects are there, so there will always be work.

“The training and support are there. So there will always be workers. You might be among the first Victorians to work their whole career in renewable energy jobs.

“These are the jobs of the future and the chance to invest in something big. The chance to say I was there, I helped to build that – the chance to change our state and our planet for the better.”