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Investments

By 2035 Victoria will need 25 GW of new renewable energy and storage capacity. The SEC will contribute to this by investing 4.5 GW in new renewable energy generation and storage.

By 2035 Victoria will need 25 GW of new renewable energy and storage capacity.

The SEC will contribute to this by investing 4.5 GW in new renewable energy generation and storage. Our work will ensure Victorian households and businesses continue to have the power they need as we transition to renewable energy.

This includes working with the industry to invest in wind and solar electricity generation and energy storage.

By focusing our investments on opportunities such as storage, we can address critical system gaps and help catalyse investment in wind and solar to replace assets such as ageing coal-fired power stations.

We will leverage Victoria’s existing wind and solar projects (VRET 1 and 2 and Bulgana) to help the Victorian Government meet its pledge of using 100% renewable electricity across all its operations, facilities and services by 2025.

We will also seek ways to provide competitive 100% renewable energy products to commercial and industrial (C&I) customers so they can achieve their decarbonisation commitments.

Finally, we will continue to explore investment opportunities in new and emerging technologies that improve efficiency and will help Victoria maintain reliable and affordable energy long-term.

Key actions

First investment in renewable energy generation or storage announced by end of 2023

Begin servicing government electricity requirements from 2025

SEC to take responsibility for VRET 1 & 2 and Bulgana contracts by 2025

Build pipeline of potential assets and technologies aligned with short and long-term supply strategy

How we invest:

The SEC’s investment decisions will be assessed against investment criteria that enable us to navigate market uncertainty while remaining anchored to our guiding principles.

The criteria will ensure our investments work to achieve sustainable returns and provide broader benefits to the Victorian public, while accelerating the energy transition.

Through this approach we will build up a 51% equity interest across our portfolio over time.

Our role as a market participant

The SEC will complement the growing renewable energy market by working with industry to identify investments that will deliver renewable energy, jobs and value for Victorians.

By focusing on opportunities such as storage, we will address system gaps and help build confidence for the industry to invest in projects that will accelerate the energy transition.

In the near term (2024–2028), we will focus on addressing existing market opportunities, such as supplying government and smaller commercial and industrial customers with firmed renewable energy supply to meet their energy and decarbonisation needs. The SEC will invest in both renewable energy generation (wind and solar) and commercial storage in order to supply these customers with affordable, reliable renewable energy.

Over time, we will focus on developing long-term options, such as securing rights for long duration energy storage (LDES), and other renewable firming capabilities. In addition, the SEC will explore opportunities to increase benefits offered to commercial and industrial customers through options such as strategic behind-the-meter assets and partnering in the development of renewable industrial hubs.

Our flexibility means we can pivot to meet emerging industry needs and take advantage of new technologies in the renewables market.

Our Pioneer Investment

SEC’s first investment was announced on 30 November 2023.

We’re investing $245 million in one of the world’s biggest battery projects – the Melbourne Renewable Energy Hub (MREH).

The batteries will total 600 megawatts and are being developed in partnership with renewable energy investor Equis Australia. Tesla will supply the batteries and the Samsung Genus joint venture will supply the remaining components of the storage system.

Once complete the batteries will deliver 1.6 gigawatt hours of energy storage, with potential to expand. That’s enough to power around 200,000 homes during peak evening consumption.

Construction of the facility is also expected to create more than 155 jobs, including up to 14 apprentice and trainee roles.

Learn more

Pioneer Investment background

In April 2023, SEC released its Pioneer Investment Mandate detailing the project criteria to guide its first investment.

Market participants were invited to submit Registrations of Interest (ROI) to identify suitable renewable energy generation and storage projects across Victoria.

SEC received more than 100 Registrations of Interest from energy market participants for its pioneer investment in renewable energy generation and storage. The response represents a combined market potential of 24 gigawatts of generation capacity and 30 gigawatts of storage capacity, which are in various stages of development.

The market search will provide a pipeline of longer-term investment opportunities.