Victorian renewable energy industry set to plummet without new VRET auctions

The Andrews government needs to take urgent action to sustain Victoria’s renewable energy industry, amid forecasts of no new renewable projects coming online between 2022 and 2025, Environment Victoria warned today.

“Renewable energy has the potential to be an incredible driver of economic recovery, but right now the industry is facing collapse without government support,” said Environment Victoria Campaigns Manager Nicholas Aberle.

“The first and only VRET auction in 2018 drove six new wind and solar projects, as well as new manufacturing and local employment opportunities particularly for regional communities. A new series of VRET auctions is urgently needed to unlock new renewable industry opportunities in the next few years.”

In June 2020, Victoria had 22 renewable energy projects either in construction or due to start soon, comprising 9 solar and 13 wind projects with a combined capacity of 3255 megawatts, providing more than 4000 jobs.

“But the Victorian government’s own modelling indicates that the state’s growth in renewables will stall within two years. The impact of stalling Victoria’s renewable industry now would be devastating both in terms of jobs and achieving our carbon pollution reduction targets,” Mr Aberle said.

“At a time when the economy is under intense strain from the COVID-19 shutdown, the benefits of supporting the renewable energy sector now would include creating much-needed new employment across Victoria, maintaining important manufacturing chains to businesses and workers, providing additional electricity generation capacity, and helping Victoria take action on climate change.

“With renewable energy jobs already at risk, there is no time to lose. The first of a series of three new VRET auctions should call for tenders within two months and aim to sign contracts in the first quarter of 2021.”

Download Environment Victoria’s VRET 2.0 policy brief here

(Renewable industry spokespeople available on request)