Managing the transition of energy supply to renewables

Why this is important

The concentration of greenhouse gases in the atmosphere drives climate change with carbon dioxide (CO2) produced by humans the largest contributor. In May 2023, Victoria committed to a set of interim emissions reduction targets to reduce greenhouse gas emissions from human activities and transition to net zero by 2045. As part of this target, Victoria has committed to a target of 95 per cent renewable energy generation by 2035.

Victoria’s largest source of emissions is from electricity generation. To meet its renewable energy targets, Victoria is accelerating the transition from fossil fuels to clean, renewable sources.

A parliamentary inquiry completed in May 2022 found that the demand for energy in Victoria is likely to double by 2050. A substantial level of investment will be required to achieve energy transition targets. This is a significant challenge that requires considerable planning, coordination and the development of infrastructure to generate and transmit a reliable supply of renewable electricity across the state.

The proper management of the transition to a renewable energy future is crucial to prevent major disruptions to the Victorian economy, community, and environment. Understanding how effectively the Department of Energy, Environment and Climate Action (DEECA), the recently revived State Electricity Commission and VicGrid are planning, governing and managing the transition will provide assurance as to whether Victoria is on track to meet its renewable energy targets. This will also play an important role in informing future decisions in the government's plan to achieve net-zero emissions by 2045.

What we plan to examine

We plan to examine whether the Victorian Government is effectively planning for, governing and managing Victoria's transition to renewable energy.

Who we plan to examine

DEECA, including VicGrid and State Electricity Commission.