The energy storage targets will be the biggest in Australia and backed by a $157 million package supporting renewable energy generation and storage projects across the state.

According to the Victorian Government, Victoria will reach 2.6 gigawatts (GW) of renewable energy storage capacity by 2030, with an increased target of 6.3 GW of storage by 2035 to provide enough renewable energy to power around half of Victoria’s current homes at their peak energy use.

Solar and wind energy will be stored when abundant and fed back into the grid when it’s needed.

Investment to support these targets includes:

• $119 million from the $540 million Renewable Energy Zone Fund for a 125MW big battery and grid inverter in the Murray Renewable Energy Zone, between Bendigo and Red Cliffs
• $7 million from the latest Energy Innovation Fund (EIF) round for a 100MW battery and inverter in Terang
• $19.3 million for two bioenergy projects at farms in Gippsland and Barwon
• $11.9 million for Yarra Valley Water to install an electrolyser to make renewable hydrogen using recycled water in Wollert.

Victoria’s new storage targets include both short and long-duration energy storage systems – which can hold more than eight hours of energy – including batteries, hydroelectricity and hydrogen technologies.

Minister for Energy, Lily D’Ambrosio, said: “Our new energy storage targets will deliver up to 12,700 jobs for Victorians – but most importantly, they’ll save Victorian families money on their energy bills, and slash our state’s emissions for generations to come.”

Victorian Chamber advocacy

The announcement aligns with the Victorian Chamber’s 2022 State Election Platform’s vision for the state’s future sustainability and energy transition.

“VCCI believes clean energy and sustainable infrastructure will power Victoria with momentum into the future. To successfully transition to renewable energy and meet carbon emission targets, we must address the skills shortage crisis, invest in long-term infrastructure projects and provide a clear plan and roadmap for the community and businesses to reach key sustainability milestones.”

While the Victorian Chamber welcomes these announcements, we have some further recommendations for clean energy and sustainable infrastructure that would help the State reach net zero faster. These include:

• Fund an energy subsidy scheme to incentivise commercial landlords to install renewable energy infrastructure
• Commit to reviewing and implementing ways to regulate the energy market to ensure certainty of supply and certainty of price for users
• Create a clean energy roadmap that drives planning and development of clean-tech enablers to reach Victoria’s 50 per cent carbon reduction target by 2030. This would include strategies that develop future fuels such as hydrogen production for transportation and industrial use, battery storage and circular economy investment for the recycling of battery and solar
• Incentivise businesses to adopt energy-saving technologies, equipment and products to lower day-to-day expenses.

The Victorian Chamber will continue to work with industry and governments to advance the state’s interests. Our full 2022 State Election Platform, Powering Victoria’s future, is available via this link.