Victoria's Renewable Energy Roadmap
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Victoria’s Renewable Energy Roadmap Delivering jobs and a clean energy future Authorised by the Victorian Government Department of Economic Development, Jobs, Transport & Resources 1 Spring Street Melbourne Victoria 3000 Telephone (03) 9208 3333 Printed by On Demand Image credit: p.18 Matthew Cawood, p.21 Karl von Moller August 2015 © Copyright State of Victoria Department of Economic Development, Jobs, Transport & Resources 2015 Except for any logos, emblems, trademarks, artwork and photography this document is made available under the terms of the Creative Commons Attribution 3.0 Australia licence. This document is also available in PDF and accessible Word format at www.energyandresources.vic.gov.au August 2015 1 Contents Minister’s Foreword 2 1. A Roadmap for renewable energy in Victoria 4 2. Renewable energy in Victoria today 8 3. Transforming Victoria’s generation stock towards renewable energy 11 4. Addressing barriers to distributed generation and storage 14 5. Encouraging household and community renewable generation 19 6. Government role in facilitating the uptake of renewable energy 22 7. Next steps 24 2 Victoria’s Renewable Energy Roadmap Minister’s Foreword Major economies around the world are transitioning their markets to deliver sustainable outcomes. They are repositioning industries and labour forces towards modes of production which are driven by renewable energy sources and new energy technology, to avoid the economic and environmental costs associated with non-renewable fuels. Governments which act now to facilitate The Action Plan is being developed market transition will be better placed in consultation with the Victorian in the future to take advantage of the community. economic opportunities which arise from sustainable industries. Conversely, This Roadmap informs our economies which don’t transform will be consultation. It will: exposed when the rest of the world shifts away from non-renewable sources. • identify policy and regulatory barriers which are stifling renewable A critical element towards delivering a energy development at a state level; sustainable economy is to increase the • provide information and facilitation supply of renewable energy generation services to support renewable in a market. Currently, Victoria only energy projects; and produces 12 per cent of its energy • investigate options for Victoria to from sustainable sources. take action independently where The Andrews Labor Government Federal policy is failing, and recognises the importance of facilitating complementary actions to attract a sustainable energy market. Therefore, investment and jobs for Victoria. we consider it vital to establish a The Roadmap complements work framework to further incentivise the already undertaken by the Labor growth of renewable energy in Victoria, Government to open up Victoria to to achieve sustainable jobs and additional investment in renewable environmental benefits. energy. We have promoted wind energy, by reducing the required To grow renewable energy in Victoria, consent distance from two kilometres the Labor Government is developing to one kilometre from a dwelling, a Renewable Energy Action Plan. and returned responsibility for wind This Action Plan will set out a farm planning approvals from local range of measures to help drive the councils to the Minister for Planning. utilisation of sustainable energy sources We have also awarded funding to in Victoria. This will include establishing two pioneering community energy a renewable energy generation target projects, at Newstead and at and policies to assist communities Woodend, to develop projects to power their neighbourhoods from which provide clean energy to renewable sources. Through these their local communities. measures, the Labor Government will promote clean energy and deliver jobs. August 2015 3 Alongside this work, the Government is developing an Energy Efficiency and Productivity Strategy, and a New Energy Technologies Strategy. The Climate Change Act is under review and we are investigating the benefits of introducing a state greenhouse gas emissions reduction target. I look forward to working in partnership with all Victorians to achieve a sustainable energy future. Hon Lily D’Ambrosio MLA Minister for Energy and Resources 4 Victoria’s Renewable Energy Roadmap 1. A Roadmap for renewable energy in Victoria Victorian Government objective: Accelerating development of renewable energy generation in Victoria to reduce emissions, create jobs, and put downward pressure on energy prices 1.1. Victoria’s energy The integration of Australian gas sector challenge production with the global economy is set to significantly influence gas prices The energy sector is a vital element of in coming years. New technologies any economy. Energy is an important such as solar PV, smart appliances input into business operations and and digital meters, and emerging an essential service for households. storage technology, are changing Therefore, energy costs are a significant the way customers use and produce factor in the cost of living and doing energy and engage in the energy business. The development of energy market. There is also a growing resources also provides economic understanding that we need to move development opportunities and can to a more environmentally sustainable itself be an important creator of way of producing our energy. Policy wealth in an economy. frameworks associated with climate change issues are affecting, and will Victoria has traditionally relied on continue to affect, developments in brown coal from the Latrobe Valley the energy sector. and oil and gas from the Bass Strait to power the state. This has provided The Victorian Government recognises Victoria with a comparative advantage these challenges. The Victorian energy as a place to invest in operations such sector is well placed to respond – as manufacturing, and has provided the Victoria has a dynamic and competitive Victorian economy with value from the energy industry in which participants utilisation of our natural resources. have the flexibility and commercial imperative to respond to emerging This traditional operating environment market trends, and it is well endowed is now rapidly changing. Electricity with the energy resources of the future. prices have risen substantially However, the sector needs government in recent years, partly driven policy leadership to reach its full by changing demand patterns potential in this new environment. increasing peak electricity demand. The Government’s policy priorities in renewable energy, energy efficiency, new energy technology and consumer protection provide important components of the policy framework for the energy sector to address these challenges. Our traditional energy operating environment is now rapidly changing. The Victorian energy sector is well placed to respond. August 2015 5 1.2. Shifting Victoria’s economy This Roadmap, and the priorities and to a low-emissions future initiatives contained within it, represent the first step in re-establishing Victoria’s Climate change is one of the most critical position as the leading state in Australia issues facing our state. All national, state for renewable energy investment. and local governments need to play a role in re-orienting the global economy Driving jobs and investment to achieve emissions reductions equal to what is required to mitigate against The Victorian Government is climate change. Those jurisdictions committed to sustainable development making early investments will realise and to decreasing Victoria’s reliance economic benefits sooner, and avoid on non-renewable sources of energy. potentially more significant changes This commitment is important in and costs into the future. They will be addressing the environmental better positioned to be competitive in consequences of climate change and the international marketplace, and to take is also vital for the future of job creation advantage of the economic opportunities and economic development in Victoria. that such transformation presents. Transforming our energy generation sector towards renewable energy The Victorian Government is adopting provides important opportunities for a multi-faceted approach to facilitate new businesses and jobs in Victoria. the creation of clean energy jobs and transition Victoria’s energy industry Internationally, the renewable towards a low carbon future. The energy sector is an area of dynamic approach includes: growth and activity. Bloomberg New Energy Finance has estimated that the 1. Accelerating deployment of renewable Australian renewable energy industry energy generation in Victoria; will attract around $14.7 billion of investment by 2020. 2. Initiating state actions to drive down carbon emissions across all industry This Roadmap is one of the elements sectors, supported by an independent underpinning the Government’s review of the Climate Change Act economic agenda and its commitment 2010 and investigation of a state to grow jobs through the Back to Work emissions reduction target; Jobs Plan. The Plan has identified 3. Driving the state’s transition to an the new energy technology sector energy efficient and productive as one of six priority industry sectors economy; and where significant economic growth can be achieved through the value 4. Developing a New Energy chain. A Future Industries Fund Technologies Strategy. has been established to help grow Victoria’s comparative advantages 1.3. Re-establishing Victoria as a and to support initiatives arising leader