40% by 2025 Victorias Renewable Energy Target Gippsland Climate - PowerPoint PPT Presentation

40% by 2025 Victoria’s Renewable Energy Target Gippsland Climate Change Network – Morwell 13 March 2018

Victorian Renewable Energy Advocate ✓ Advocate and advise on renewable energy development in Victoria ✓ Engage with community, industry and government ✓ Share insights from ACT’s 100% renewables policy and reverse auction program. 2

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The transformation is global… 4

…and national 5

Victorian Renewable Energy Target 6

Victorian Renewable Energy Target ✓ Enshrines targets in law ✓ Minister must determine capacity required to meet 2020 and 2025 targets ✓ Minister must report annually to Parliament on progress 7

Victorian Renewable Energy Auction Scheme ✓ State will award Support Agreements to renewable energy projects ✓ Support Agreements will be a Contract for Difference ✓ Long term agreement ( 15 years ) ✓ Support Agreements awarded through a competitive reverse auction ✓ 650MW to be awarded through first auction ✓ First auction winners to be determined mid 2018 8

Victorian Renewable Energy Auction Scheme ✓ Evaluation criteria focus on value for money, economic development outcomes, community engagement and technical, financial feasibility ✓ Strong weightings for economic development and community engagement 9

What can we expect ? ✓ ACT Reverse Auctions (700MW) required economic development & community engagement commitments ✓ Delivered $500 million in investment in ACT economy ✓ Wind operation and development centres, research and teaching at universities and TAFE ✓ Community ownership schemes ✓ Development of hydrogen, battery and micro grid projects 10

What should we expect ? ✓ 2017 Reverse Auction will support 650MW ✓ $1.3 billion construction activity , 1250 construction jobs ✓ 90 ongoing jobs ( operations only ) ✓ Supply chain development ( towers, nacelles, transformers, sub contractors ) ✓ Research and training ✓ Community infrastructure improvement 11

What about the NEG ? ( National Energy Guarantee ) ✓ National Energy Guarantee designed to regulate dispatchability and emissions intensity of the NEM ✓ Will require agreement of states and territories through COAG Energy Council ✓ Impact on renewable energy development will depend on requirements for emissions reduction and level of dispatchability ✓ State based auctions likely to play a major role in the market due to the attractiveness of long term contract – even more important! 12

Economic development outcomes 13

Offshore wind generation – growth potential 14

Transmission infrastructure – emerging opportunity ? 15

Community owned solar projects 16

How should communities position ? ✓ Understand community economic development ambitions ✓ Identify opportunities to align potential renewable energy development commitments with existing strategies ✓ Engage with developers ✓ Work with local and state governments ✓ Be public – be upfront! ( but stay realistic ) ✓ Have ambition - Embrace the opportunities! 17

Thank you ! Office of the Renewable Energy Advocate PO Box 500 East Melbourne 8002 renewable.energyadvocate@delwp.vic.gov.au @VicRenewAdvo