Victoria state in Australia is set to invest an initial A$1 billion ($630 million) to accelerate its energy transition to renewable power. The investment will produce 4.5 GW of new renewable energy, which is sufficient to power approximately 1.5 million homes in Victoria, Australia’s second-most populous state. This move follows the Victoria government’s decision in July to ban natural gas connections to new homes from next year . The gas sector contributes 17% of emissions in the state, which has ambitious plans to reach net zero emissions by 2045, five years ahead of the federal government . The new investment will concentrate on augmenting storage and onshore power generation, and bolstering industry assurance to lure additional investments.
Victoria is the country’s largest consumer of natural gas with around 80% of homes connected but new homes requiring planning permits must connect to all-electric networks from January 2024 .The investment will facilitate the transition of households from natural gas to alternative sources for heating and cooking .The Victoria government aims to shift to 100% renewable energy in every government office in the state by 2025. The investment will help accelerate efforts towards this goal .
Victoria’s Premier Jacinta Allan said that the investment will help build the renewables workforce Victoria needs. Allan also said that the investment will help households switch to all-electric . The investment will help increase storage and onshore generation, and build industry confidence to attract further investment . The move is part of Victoria’s ambitious plans to reach net zero emissions by 2045, five years ahead of the federal government. The gas sector contributes 17% of emissions in the state .The investment is anticipated to generate employment opportunities and stimulate economic expansion.