SEC to power 5% of Victoria's electricity market

27 May 2025

The SEC will power approximately 5% of Victoria’s electricity market from 1 July 2025, following the signing of contracts that will see it power schools, hospitals and other Victorian Government operations with 100% renewable electricity.

This includes everything from metropolitan and regional hospitals to some of Victoria’s most iconic and loved places, such as Flinders Street Station, the Melbourne Museum, the National Gallery of Victoria, Phillip Island’s Penguin Parade, Werribee Open Range Zoo, the Royal Botanic Gardens and the Melbourne Park precinct.

The SEC will also supply much of Victoria’s train and tram network, powering over 350 million train and tram trips each year.

SEC CEO Chris Miller said supplying renewable power to government operations is just the start of the SEC’s offering, which will expand to help businesses in Victoria achieve their decarbonisation goals.

“When we enter the market on 1 July, the SEC will be servicing approximately 5% of the Victorian electricity market, providing us with a strong base to help more Victorian businesses transition to renewable energy, improve their energy efficiency, reduce consumption and meet their carbon reduction goals,” Mr Miller said.

Currently, large commercial and industrial customers are able to negotiate renewable energy Power Purchase Agreements with developers or gentailers, leveraging their buying power to access these opportunities. Smaller commercial and industrial businesses have less opportunity. The SEC will help to address this gap.

The SEC will meet its customers’ electricity demand with the SEC’s portfolio of renewable electricity generation and storage assets, including the VRET projects. Projects supported by VRET auction contracts include the Berrybank Wind Farm, Dundonnell Wind Farm, Winton Solar Farm, Glenrowan Solar Farm, Cohuna Solar Farm and Bulgana Green Power Hub. This will reduce the Victorian Government’s exposure to price volatility in the electricity market.

“Our capacity to source renewable energy, including from the Victorian Renewable Energy Target auction projects, and offer renewable energy to retail and wholesale markets means we can match supply with demand, thereby reducing the Victorian Government’s exposure to price volatility,” Mr Miller said.

The SEC marked the contract signing milestone today at John Cain Arena, which will be powered by the SEC from 1 July.

How will the SEC provide renewable electricity to its retail customers?

As is the case for all retailers operating in the National Electricity Market, electricity consumed by the SEC’s customers comes from the National Energy Market, which sources supply from renewable and non-renewable sources.

However, the SEC will match the electricity consumption of its customers by surrendering large-scale generation certificates (LGCs) generated by renewable energy sources, including its own renewable energy projects, to ensure each megawatt hour of electricity our customers consume  is matched to a renewable source.

This will include certificates generated by the SEC’s own projects and projects supported by Victorian Renewable Energy Target auction contracts, such as Berrybank Wind Farm, Glenrowan Solar Farm, Dundonnell Wind Farm, Cohuna Solar Farm and Bulgana. The SEC will purchase LGCs  if required.

LGCs are tradable certificates created for eligible large-scale (greater than 100kW) renewable energy solar and wind power stations. LGCs are surrendered to the Clean Energy Regulator to meet renewable energy targets. Each LGC can be used to offset one megawatt hour of consumed energy, resulting in that megawatt hour of energy being “renewable”.