The Australian Government has revealed plans to allocate a substantial portion of Australia’s tender for renewable energy to bolster sources in Victoria and Tasmania.
The initiative, set to commence this month, will see 1.7GW of renewable energy capacity allocated as part of the government’s overarching strategy to enhance energy supply.
Under the umbrella of the Capacity Investment Scheme, initiated by the Australian Government, a total of 32GW of reliable renewables is slated for development by 2030.
This collaborative effort aims to expedite and facilitate new energy investments across various states while ensuring the stability of the national grid.
In the upcoming allocation, Tasmania is guaranteed a minimum of 300MW for new renewable energy projects, while Victoria is set to receive at least 1.4GW, sufficient to power approximately 700,000 households within the state.
Victoria has expressed appreciation for the early commitment from the Commonwealth, anticipating further collaboration as discussions progress towards the final agreement on the full Capacity Investment Scheme program.
This announcement follows recent agreements nationwide aimed at meeting the energy demands of households and industries.
Initial allocations have earmarked 2.2GW for New South Wales, 300MW for South Australia, and 500MW for Western Australia.
Minister for Climate Change and Energy Chris Bowen emphasised the government’s dedication to reducing energy prices and enhancing reliability by facilitating substantial private investment in dependable renewable energy projects nationwide.
The Reliable Renewables plans with states are crafted to address reliability concerns and overcome obstacles hindering the expedited deployment of energy resources, particularly as aging coal-fired power stations phase out.
Through the government’s Reliable Renewable Plan, facilitated by the Capacity Investment Scheme, Australia’s energy landscape is transitioning towards an 82 per cent renewable grid, reinforced by storage solutions, gas, and enhanced transmission infrastructure.
Meanwhile, Minister for Energy and Resources Lily D’Ambrosio expressed satisfaction with Victoria’s efforts to integrate more affordable renewable energy into the grid and welcomed the collaboration with the Commonwealth Government to further expand renewable energy infrastructure.
“We have an ambitious climate action agenda with a target of 95 per cent renewables by 2035 – to achieve this we must partner with industry to provide necessary confidence and leverage the huge amounts of private investment required,” she asserted.
Registration for bids for the tender is set to open on 16 May, marking the commencement of a series of planned six-monthly auctions.