The government of the Australian State of Victoria has announced it will extend the Victorian Renewable Energy Target to 50 percent by 2030 in order to provide the certainty the industry needs.
Extending the Victorian Renewable Energy Target (VRET) to 2030 will help to deliver thousands of new jobs and billions of dollars in investment for the regional economy, the Clean Energy Council (CEC) said this week. According to Clean Energy Council Chief Executive Kane Thornton, delivering 50 per cent renewable energy by 2030 is achievable and can be delivered at a lower cost than any other comparable option to modernise Victoria’s electricity sector.
“The national Large-scale Renewable Energy Target essentially stops encouraging new renewables from 2020” said Mr Thornton. “The industry is not calling for new subsidy, but we do need investment certainty. Victoria has now introduced an impressive and comprehensive suite of policies to encourage the transition to clean energy, and is setting the pace for other states to follow. Federal energy policy remains in chaos following the demise of the National Energy Guarantee, and the renewable energy industry is now looking for leadership at the state level beyond the end of this decade”.
Thornton added that building new low-cost clean energy such as solar and wind before ageing coal-fired plants retire is the most effective way to drive down power prices for Victorian energy customers.
Energy projects are assets with long lives which typically operate for 15 years or more. While the industry continues to wait for certainty at the federal level, extending the VRET to 2030 provides the certainty that renewable energy companies need to invest in new wind, solar and storage projects across the state.