Up to five per cent of Victoria’s electricity market will be powered with renewable energy provided by the State Electricity Commission (SEC) under new contracts signed with the Victorian Government.
It’s the first time the SEC will deliver power to Victorians since it was privatised more than 30 years ago.
Under the agreements, the SEC will power 1468 public schools, kindergartens and TAFEs across the state; as well as hospitals, large police stations, fire stations and essential water infrastructure from 1 July 2025.
This includes metropolitan and regional hospitals and some of state’s most iconic locations such as Flinders Street Station, the Melbourne Museum, the National Gallery of Victoria, Phillip Island’s Penguin Parade, Werribee Open Range Zoo, the Royal Botanic Gardens and the Melbourne Park precinct.
The SEC will also supply much of Victoria’s train and tram network, powering over 350 million train and tram trips each year.
SEC CEO, Chris Miller, said supplying renewable power to government operations is just the start of the SEC’s offering, which will expand to help businesses in Victoria achieve their decarbonisation goals.
“When we enter the market, the SEC will be servicing approximately 5 per cent of the Victorian electricity market, providing us with a strong base to help more Victorian businesses transition to renewable energy, improve their energy efficiency, reduce consumption and meet their carbon reduction goals,” Mr Miller said.
Currently, large commercial and industrial customers can negotiate renewable energy power purchase agreements with developers or gentailers, leveraging their buying power to access these opportunities. Smaller commercial and industrial businesses have less opportunity, the SEC said, and it aims to help to address this gap.
The SEC will meet its customers’ electricity demand with its portfolio of renewable electricity generation and storage assets, including the Victorian Renewable Energy Target (VRET) projects. Projects supported by VRET auction contracts include the Berrybank Wind Farm, Dundonnell Wind Farm, Winton Solar Farm, Glenrowan Solar Farm, Cohuna Solar Farm and Bulgana Green Power Hub. The SEC said this will reduce the Victorian Government’s exposure to price volatility in the electricity market.
The SEC is building 819MW of solar and battery storage at the SEC Renewable Energy Park in Horsham and the Melbourne Renewable Energy Hub near Melton – which aim to pump more renewable energy into the grid, drive down energy prices for Victorians and slash emissions as we work towards net zero by 2045.
“Our capacity to source renewable energy, including from the VRET auction projects, and offer renewable energy to retail and wholesale markets means we can match supply with demand, thereby reducing the Victorian Government’s exposure to price volatility,” Mr Miller said.
Victorian Premier, Jacinta Allan, said that the SEC is back – and it’s powering Victoria with cheap, reliable, publicly-owned renewable energy.
“Families want help with the cost of living, and I’m on their side. So is the SEC,” Ms Allen said.
Victorian Minister for the State Electricity Commission, Lily D’Ambrosio, said, “The SEC will power Victorian Government operations with 100 per cent renewable electricity – with all profits being invested back into projects that will deliver more renewable energy and lower power bills for Victorian families.”
