Loddon Mallee Region Renewable Energy Roadmap Loddon Mallee Renewable Energy Roadmap Foreword On behalf of the Victorian Government, I am pleased to present the Victorian Regional Renewable Energy Roadmaps. As we transition to cleaner energy with new opportunities for jobs and greater security of supply, we are looking to empower communities, accelerate renewable energy and build a more sustainable and prosperous state. Victoria is leading the way to meet the challenges of climate change by enshrining our Victorian Renewable Energy Targets (VRET) into law: 25 per cent by 2020, rising to 40 per cent by 2025 and 50 per cent by 2030. Achieving the 2030 target is expected to boost the Victorian economy by $5.8 billion - driving metro, regional and rural industry and supply chain development. It will create around 4,000 full time jobs a year and cut power costs. It will also give the renewable energy sector the confidence it needs to invest in renewable projects and help Victorians take control of their energy needs. Communities across Barwon South West, Gippsland, Grampians and Loddon Mallee have been involved in discussions to help define how Victoria transitions to a renewable energy economy. These Roadmaps articulate our regional communities’ vision for a renewable energy future, identify opportunities to attract investment and better understand their community’s engagement and capacity to transition to renewable energy. Each Roadmap has developed individual regional renewable energy strategies to provide intelligence to business, industry and communities seeking to establish or expand new energy technology development, manufacturing or renewable energy generation in Victoria. The scale of change will be significant, but so will the opportunities. Each community has a part to play in embracing cleaner energy and the benefits it brings for a brighter future. The Hon. Lily D'Ambrosio MP Minister for Energy, Environment and Climate Change Minister for Solar Homes Front cover ii i State Government of Victoria Loddon Mallee Renewable Energy Roadmap Content About the Executivesummary1 LoddonMalleeandtheenergytransition5 Driversofchange6 roadmap Ourenergysystemtodayandtomorrow7 Renewableresources9 Ourcommunity11 Opportunities15 The Loddon Mallee Renewable Energy Roadmap provides a snapshot of the Concerns17 opportunities and obstacles the region faces as it moves from a centralised Otherconsiderations18 to a more decentralised renewable energy system. It builds a picture of how Communityenergygroups19 our energy system currently works, and the possibilities this transition will create. In writing the roadmap, we spoke to people across the community, to Utilityscalegeneration23 make sure the region’s voices are heard in the plan for new energy future. Solarfarms24 The concept for regional renewable energy roadmaps was devised by the Windfarms27 Victorian Government's Department of Environment Land Water and Planning and funded through the New Energy Jobs Fund in late 2018. In the Distributedenergyresources33 Loddon Mallee, the project has been led by the Central Victorian Rooftopsolar34 Greenhouse Alliance, with oversight by the Loddon Mallee New Energy Taskforce. Bioenergy37 Emergingtechnologies42 The roadmap is for a broad audience of stakeholders inside and outside the Energyefficiencyanddemandresponse46 Loddon Mallee region. It will provide value to local and state government agencies, private investors, community groups and individuals in the region Thegrid49 who wish to understand what is happening and identify opportunities. The Transmission50 recommended next steps in the roadmap are designed to be broad enough for anyone to pursue. It is not expected that they will be the responsibility of Distribution51 any single stakeholder, but rather, will require strong collaboration across the ManagingDistributedEnergyResources53 region. Climatechange55 Offgridandmicrogrids58 Fuelswitching58 Supportinglocaleconomies59 Employment60 Buildingtheworkforce61 John Mclinden Renewableenergyemploymentopportunities63 Chair, Loddon Mallee New Energy Taskforce, and Nextsteps65 CEO of Swan Hill Rural City Council) ii iii iii Loddon Mallee Renewable Energy Roadmap Acronyms AEMC Australian Energy Market Commission AEMO Australian Energy Market Operator ARENA Australian Renewable Energy Agency CFA Country Fire Authority CVGA Central Victorian Greenhouse Alliance DER Distributed Energy Resources DR Demand response EUA Environmental Upgrade Agreement EV Electric vehicle HVAC&R Heating, Ventilation, Air Conditioning and Refrigeration KEWGS K Englefield Wine Grape Services MASH More Australian Solar Homes PILoR Payments in Lieu of Rates PPA Power Purchase Agreement PV Photovoltaic REZ Renewable Energy Zone RIT Regulatory Investment Test SAPS Standalone Power Systems SWER Single Wire Earth Return VRET Victorian Renewable Energy Target Riverland in Campaspe (opposite) Photo supplied by: iv v The region is well placed to become a There are many economic, social and renewable energy powerhouse. By mid- environmental drivers for change. New decade, renewables could deliver over $1 renewable energy technologies, such as billion in supply chain benefits to the wind and solar with storage, now Executive region and create over 3200 jobs during outcompete new fossil fuel generation on construction. However, to unlock the full cost. All of Victoria’s remaining fleet of potential of renewable energy in the coal-fired power plants will be retired by region, investment is needed to upgrade the transmission grid. summary ...to unlock the full potential of The Loddon Mallee Renewable Energy renewable energy in the region, Roadmap provides an overview of the investment is needed to upgrade opportunities and obstacles the region the transmission grid. faces as it continues to move to a more decentralised renewable energy system. It draws upon extensive community 2050, with scheduled closures starting in engagement, as well as technical studies, 2032. In addition, ongoing investment in to build a complete picture of the region. renewables will be forced by the need to The roadmap seeks to ensure that the urgently reduce greenhouse gas communities’ concerns and aspirations emissions to address climate change. In are well represented in planning for this the Loddon Mallee, local governments, transition. businesses and communities are helping to drive the transition. Bendigo town hall Photo supplied by Greater Bendigo City Council The Loddon Mallee region is experiencing an unprecedented and exciting transition to renewable energy. Five years ago, less than 5 per cent of the region’s energy needs were generated locally from large and small scale solar, bioenergy and wind. Now, it’s 69 per cent. This accounts for nearly 16% of Victoria’s current renewable generation capacity. Within the next five years, the region will be able to meet its own energy needs and export power elsewhere in Victoria and interstate. Our region alone could deliver the Victorian Renewable Energy Target of 40 per cent by 2025, if all of the planned large- scale solar projects go ahead. 1 2 Loddon Mallee Renewable Energy Roadmap There is a strong social license for to be carefully designed and located, and renewable energy right across the region. cognisant of existing land use and values. Nine out of every ten respondents in our In most circumstances, large solar farms engagement said it is very important to need to be built within 1.5 kilometres of use local renewable energy resources. the transmission line from Mount Likewise, there’s widespread interest in Alexander Shire to Mildura, through becoming more energy self-sufficient and Bendigo and Kerang. If all the currently ensuring economic benefits remain in the planned solar was built within this area, it area. People support large-scale would cover less than 4 per cent of the renewable energy development, as long land. as it provides economic, social and environmental benefits to the broader The Loddon Mallee region also has community. significant untapped bioenergy resources. With our large agricultural sector, the Energy developments are proving they region has significant opportunities for can improve landscape attributes such as converting biomass to energy by biodiversity or agriculture, but they need generating electricity, heat, natural gas or seven priorities The Loddon Mallee region and it’s Local Government Areas The Loddon Mallee region in central to north western Victoria is made up of 10 Local Government Areas Executive Summary 3 4 Drivers of change The cost of new renewable energy and sustainability a key objective of the technologies, such as wind and solar, now energy transition. All of Victoria’s existing outcompetes new coal and gas-fired fleet of coal-fired power plants will be Loddon Mallee generation. Combined with storage, these retired by 2050, with scheduled closures technologies can outcompete fossil fuel starting in 2032. The reliability of some of dispatchable generation. Rising power these plants is already declining. prices, along with government rebates for renewables such as rooftop solar, are Local and state government policies are and the energy driving households and businesses to driving additional uptake of renewable invest in renewable energy technologies. energy. The Victorian Renewable Energy Some consumers are purchasing Target (VRET), 50 per cent by 2030, will batteries as a way to protect against grid stimulate investment in renewables and outages. support the reliability of electricity supply. transition