New solar and wind farms will be built in Victoria, generating enough energy to power 640,000 homes as part of the Andrews Government renewable energy target.
Premier Daniel Andrews will formally announce the results of the special “reverse auction” on Tuesday, a system where the Government has asked the industry for bids to build new energy generation.
Under the scheme, the Government enters into a “support agreement” that sets a minimum price for energy guaranteeing revenue if the market slips below a certain price.
The Victorian Renewable Energy Target (VRET) is designed to lift energy generation from renewables to 25 per cent by 2020, and to 40 per cent by 2025.
Environment Minister Lily D’Ambrosio said wholesale prices will drop with more power generation.
“The quickest and the cheapest form of new energy supply that you can produce in this country right now is renewable energy, and our government is absolutely committed to delivering this to Victorians,” she said.
“That will mean that households in Victoria, families and businesses will start to see the benefits of reduced power prices come through.”
She confirmed six wind and solar farms will be built across regional Victoria. These include:
Berrybank wind farm, near Geelong
Cawarp solar farm, near Mildura
Cohuna solar farm, near Echuca
Dundonnell wind farm, near Warrnambool
Mortlark South wind farm, near Mortlake
Winton solar farm, near Shepparton
Ms D’Ambrosio said the projects will generate a combined total of 928 megawatts of energy, exceeding the 650 megawatt target for the VRET.
“These renewable energy projects create jobs, they drive growth, they protect our environment, and also importantly they help to drive down power prices for Victorian families and businesses,” she said.
The announcement follows big promises on solar energy announced by the Andrews Government in recent weeks.
Premier Andrews announced a $1.3 billion package for discounted rooftop solar and solar hot water systems.
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