Victoria is set to undergo a significant transformation in its energy sector as the state government lays out an ambitious plan to achieve 95% renewable electricity by 2035. This sweeping initiative, detailed in the newly released document, "Cheaper, Cleaner, Renewable: Our Plan for Victoria’s Electricity Future," outlines the state's strategy to shift away from fossil fuels and embrace a future dominated by renewable energy.
The plan highlights the scale of the challenge and the infrastructure required to meet these ambitious targets. Victoria will need an estimated 27 million additional solar panels, 900 onshore wind turbines, and 1.4 million electric vehicle (EV) chargers by 2035. This massive build-out of renewable energy resources is expected to be accompanied by a 50% increase in electricity consumption, driven by the electrification of homes, businesses, and transportation.
By 2035, Victoria's energy system will have undergone a significant transformation, with a 50% increase in electricity usage largely fueled by the electrification of homes, businesses, and the growing adoption of electric vehicles. This increased demand will coincide with the closure of 4.8 gigawatts (GW) of emissions-intensive brown coal-fired power capacity, making way for 11.4 GW of new grid-scale renewable energy projects, including 4 GW from offshore wind. Additionally, 6.3 GW of new short and long-duration energy storage will be implemented to ensure reliability during peak demand and periods of low renewable generation. The state will also see the installation of 7.6 GW of additional rooftop solar and 4.3 GW of distributed storage, further decentralizing the energy grid and empowering consumers. Key infrastructure developments, such as the completion of the VNI West and Marinus Link interconnectors, will enhance the state's energy security by enabling the export of renewable energy and access to over 2.4 GW of firming resources.
Energy storage is another critical component of Victoria's plan. By 2035, the state aims to have 6.3 GW of storage capacity, including utility-scale batteries, to ensure that the grid remains reliable as it integrates more intermittent renewable energy sources. The government also plans to deploy 3,600 battery packs across the state to manage electricity demand outside peak generation periods.
The Victorian Government has committed to a multi-faceted approach to support this energy transition. This includes establishing the State Electricity Commission (SEC) to accelerate investment in renewable energy projects, streamlining approvals processes to reduce delays, and creating new renewable energy zones through the VicGrid initiative.
However, the plan also acknowledges the challenges ahead. The retirement of Victoria's brown coal-fired power stations, which currently provide a significant portion of the state's electricity, will require careful management to ensure energy reliability and affordability during the transition. The document also emphasizes the importance of partnerships with Traditional Owners, local communities, and the private sector to achieve these goals.
Victoria’s Energy Minister, Lily D’Ambrosio, has stated that the government is confident in meeting its targets, pointing to the state's track record of exceeding previous renewable energy goals. Yet, experts caution that the scale and speed of the transition present risks, particularly in ensuring that the necessary infrastructure is in place on time and that costs are managed effectively.