Victoria’s future electricity system will benefit all Victorians.
It will deliver clean, affordable, reliable, safe and secure electricity - underpinned by job creation and economic activity.
Cheaper, cleaner, renewable
The Victorian Government has unveiled Cheaper, Cleaner, Renewable: Our plan for Victoria's Electricity Future.
This is our vision for the state’s future electricity system and investment opportunities to 2035 – when 95% of our electricity generation will be from renewables – and how we'll get there. The Plan also:
- confirms our commitment to collaborating with landowners, local communities, investors and industry, and resolute commitment to meaningfully partnering with Traditional Owners as distinct rights holders as we drive Victoria’s electricity transition forward
- sets out how Victoria will achieve its bold transition targets – built on 4 pillars.
The 4 pillars
- enabling the renewables big build
- empowering households and businesses to lower energy bills
- managing the transition away from fossil fuels
- creating jobs, skills and supply chains.
The Plan complements Victoria’s Gas Substitution Roadmap, which provides a comprehensive overview of Victoria’s work to carbonise its fossil gas use.
2035
In 2035, our electricity system will be very different:
- Electricity use will have increased by at least 50 per cent through electrification of gas use and transport
- around 4.8 gigawatts (GW) of emissions-intensive coal-fired power generation will have closed
- around 11.4GW of new grid-scale renewables will be installed - including 4GW of offshore wind
- there will be around 7.6GW of additional rooftop solar
- at least 6.3GW of short and long duration storage
- and the VNI West and Marinus Link interconnectors will be online, exporting Victorian renewables and providing access to firming resources in the National Electricity Market (NEM).
Our targets
To get there, Victoria is leading the country with its renewable energy targets of:
- 65% by 2030 and 95% by 2035
- energy storage targets of at least 2.6GW by 2030 and at least 6.3GW by 2035
- and offshore wind energy targets of at least 2GW by 2032, 4GW by 2035 and 9GW by 2040.
These are critical to achieving our world-leading climate targets to reduce Victoria’s emissions by:
- 45-50% below 2005 levels by 2030
- 75-80% by 2035
- net-zero emissions by 2045.
We’re well on our way to meeting all of these targets. We’ve more than tripled the share of renewable energy since 2014 and are now generating 38% of our power from renewables.
Across 2023/24, rooftop solar produced more than 9% of Victoria’s electricity generation, with 4,847MW of small-scale rooftop PV capacity, and Victoria reached 537MW of commissioned battery storage capacity – more than any other state.
Bringing on more renewable capacity, faster, means lower bills for consumers.
The facts
- Last year, Victorian wholesale electricity prices were about 39% lower than New South Wales
- we have the lowest average wholesale electricity prices in mainland Australia
- and forecasts suggest our prices will continue to be the lowest
- renewables are now producing more electricity per annum than any of the three remaining coal-fired generators.
Victoria’s world-leading renewable energy policies and programs have already helped us to reach 5,409 megawatts of commissioned large-scale wind and solar capacity. And we’ll move even faster now - supported by our actions to streamline planning processes and approvals for renewable energy projects under the Development Facilitation Program.
View Cheaper, cleaner, renewable: Our plan for Victoria's Electricity Future.
Page last updated: 21/08/24