Victoria’s revived State Electricity Commission (SEC) has attracted more than 100 registrations from energy and battery projects that are seeking funding from its $1 billion investment fund. The re-establishment of the SEC was a key policy of the Andrews government’s re-election campaign, with the aim of reducing household power bills and promoting the transition to renewable energy. The government plans to use its balance sheet to acquire a major stake in new projects, potentially enabling the state to generate revenue by selling electricity to the National Energy Market.
The SEC’s initial investment of $1 billion will be used to generate 4.5 gigawatts of renewable energy by 2035, which is enough to replace the state’s largest power station, Loy Yang A. The closure of coal power plants has put strain on the electricity grid, making the need for renewable energy projects even more crucial.
Of the 100 registrations received, a significant portion are for battery projects, representing over 30 gigawatts of storage capacity. An additional 24 gigawatts of generation projects, including wind, solar, and emerging technologies, have also expressed interest in the scheme. The SEC is currently in the final stage of selecting projects and is conducting detailed discussions with individual applicants.
The Andrews government anticipates announcing the chosen projects and unveiling a 10-year plan for the SEC by the end of the year. This would mark a significant milestone in delivering on their campaign promise. Projects that are not selected in the first round of funding may still be eligible for future funding opportunities as the SEC seeks to establish a long-term investment pipeline.
The SEC’s Minister, Lily D’Ambrosio, described the interest in the Pioneer Investment market search as a vote of confidence in Victoria’s energy transition and the role the SEC will play in facilitating private sector investment. The government-appointed Expert Advisory Panel, responsible for overseeing the SEC’s vision, is currently assessing where to invest the funds first.
Sources: The Age