The Victorian Labor government has announced an “ambitious and achievable” Victorian Renewable Energy Target (VRET). This target will commit the state to generating 25% of its electricity from renewable energy by 2020, and 40% by 2025 as reported by Dylan McConnell.
While details of the VRET are yet to be fully fleshed out, it is set to be based on a similar mechanism to the scheme used in the Australian Capital Territory (ACT), which has managed to sidestep the uncertainty that has plagued the renewables industry in recent years. ACT deputy chief minister Simon Corbell called Victoria’s announcement “a game-changer”.
A key motivation for the decision identified by the Victorian energy minister, Lily D’Ambrosio, was “restoring the confidence needed to invest”.
National tally
The federal Renewable Energy Target (RET) was reduced by 20% following the Warburton Review in 2014. Since then, state and territory governments have announced their own targets to support the industry.
Earlier this year, the ACT announced it would bring forward previous commitments. It is now aiming to meet 100% of its electricity needs from renewable by 2020.
In 2014, South Australia announced a 50% target by 2025. More recently, Queensland committed to generating 50% of its energy from renewable sources by 2030.
Based on forecasting by the Australian Electricity Market Operator, these commitments add up to a considerable expansion of renewable energy. In total, these commitments represent 56 terawatt hours (TWh) each year, above baseline generation. Baseline generation is renewable generation that existed before 1997, almost exclusively hydro power.
The remaining states already have renewable generation and these facilities presumably will not be torn down. So even assuming that these states do not build a single new project, in combination with the targets, Australia is headed towards a total of 61TWh above the baseline.
This compares to the current national target of 33TWh. If the states fulfil their commitments, they will deliver almost twice as much renewable generation as the national RET requires.
If we add baseline hydro back into the equation, total renewable energy generation in Australia is set to be at least 77TWh by 2030. Depending on how electricity demand changes, and how rooftop solar is included, Australia is on track to meet 30-35% of its power demand from renewables by 2030. To read more click here.
