Premier Allan has launched the SEC’s Strategic Plan 2023-2035, which includes an initial investment of $1 billion in energy production. The plan aims to accelerate Victoria’s progress towards achieving net-zero emissions. The State Electricity Commission (SEC), which was previously privatized by former Premier Jeff Kennett in the 1990s, is being revived to support this initiative. The decision to privative the SEC was criticized by retired Premier Daniel Andrews for increasing power bills.
During the last state election, Mr. Andrews promised to bring back government ownership of energy and revive the SEC. Newly appointed Premier Jacinta Allan announced that the SEC is officially back. The revived SEC will focus on lowering household energy bills and harnessing the potential of renewables. The Strategic Plan includes an investment of $1 billion towards energy production and storage projects, which is expected to power around 1.5 million homes.
To support this transition, the SEC will provide information and training to households on how to electrify their homes. The plan highlights that residents of detached homes without solar panels spend around $4,400 on energy bills annually. However, after complete electrification, this cost can be reduced to approximately $3,000 per year. With the installation of solar panels, savings can increase to over $2,700 per year, resulting in a 60% reduction in energy bills.
In addition to the economic and environmental benefits, the government predicts that the transition to renewable energy will create 59,000 job opportunities, including 6,000 traineeships and apprenticeships. The SEC Centre of Training Excellence will collaborate with schools, TAFEs, and the industry to work towards a skilled renewable energy workforce. The goal is to achieve 95% renewable energy in the state by 2035, requiring 25 gigawatts of renewable energy capacity.
While the government’s announcement has been welcomed by many, there are also concerns about the funding. Opposition Leader John Pesutto questions the adequacy of the allocated funds and suggests that more money will be required, leading to extra debt. Clean Energy Council CEO Kane Thornton emphasizes the importance of striking the right balance in government support for long-duration storage projects and sustainable investment.
Friends of Earth Melbourne (FOE) welcomes the government’s move to revive the SEC but urges the development of a plan to shut down gas distribution in the state. The group highlights the need to retire gas in order to achieve a comprehensive zero-emissions energy plan for Victoria. The current gas distribution network in Victoria experiences significant leaks, with approximately 3.7% of fossil gas being lost. FOE calls for a coherent state government plan to address this issue and involve local governments and communities in the retirement of gas infrastructure.