Victoria gives SEC $1 billion to fast-track wind and solar

Despite looking down the barrel of a $4 billion deficit, the Victoria state government is sticking to its guns on funding for its renewable goals by allocating $1.78 billion in the 2023-24 budget. 

The majority of the cash is $1 billion set aside as an initial equity investment for the revived State Electricity Commission (SEC), that’s designed to deliver 4.5 gigawatts (GW) of power, said energy minister Lilly D’Ambrosio in a statement. 

“We’re doing what matters for Victorians: bringing back the SEC to kickstart renewable energy investment, drive down power bills, tackle climate change and create thousands of jobs,” she said.

Last month the government launched a market search for a flagship generation and/or storage project, as part of its election promise for a 10-year plan to invest in re-establishing generation in the Latrobe Valley, with projects 51 per cent owned by the Victorian taxpayer and 49 per cent owned by an investment partner.

The new SEC will also get an extra $44 million to set up bases in Morwell and Melbourne.

The next largest item is $400 million for the $250 Power Saving Bonus, a scheme that gives Victorian residents $250 for looking for energy deals on the Victorian Energy Compare website.

The remaining $336 million is being spent on training, regulatory and infrastructure, and other cost-of-living easing measures. 

With Australia facing a shortage of critical clean energy workers, particularly in the offshore wind industry, in the coming decade, industry and academia have been lobbying for more support for education.

Over the next four years the government is investing $12 million in the SEC Centre of Training Excellence, which will cover a business case for the centre and new vocational education and training (VET) qualifications, and another $16 million on two worker training centres for the offshore and onshore wind industry, and the hydrogen industry.

Out of the education budget will come $19 million for 10,000 students to do work experience placements in the clean energy sector and other priority areas, $116 million to build and operate six new tech schools and establish a Clean Energy Equipment Fund, and $50 million for a TAFE Clean Energy Fund to support new and upgraded facilities to improve workforce skills and capacity in the clean energy sector.

Some $15.3 million will  be spent on reviewing regulatory and licensing requirements for renewable energy systems as well as for “continued specialist advice to help shape the national energy reform agenda and maintain alignment with Victoria’s energy interests”. 

The government will give VicGrid $20.6 million for planning and community consultation for Victoria’s transmission network.

Healesville and Benambra share $130,000 for access to renewable and local energy alternatives, $58.2 million will be spent on 100 neighbourhood batteries throughout the state and offering interest-free loans for household batteries, and $5.1 million is going towards encouraging swapping gas appliances in businesses and households for electric versions.

The government is also staying firm on its commitment to develop the Port of Hastings as an offshore wind terminal, just as it sweeps other major infrastructure promises off the table. It will spend $27 million on the port development, although with the first licence auction closed and assessments underway, the deadline for a port to facilitate the new industry is getting inexorably nearer.