2nd VRET Auction Launched In Victoria

Australia’s Victoria Launches 2nd Renewable Energy Target Auction Seeking A Minimum Of 600 MW New Renewable Energy Capacity
09:53 PM (Beijing Time) - 31. August 2021
Presentation1

After awarding 928 MW renewable energy capacity under VRET1, Victoria has now launched VRET2 seeking to procure at least 600 MW capacity. (Photo Credit: State Government of Victoria)

Key Takeaways

  • Victoria has officially launched VRET2 round seeking a minimum of 600 MW renewable energy capacity
  • It has strong local content requirements and robust obligations on the participants to deliver, according to the government
  • Power generated will match the government’s electricity consumption for state hospital, schools, Melbourne’s train network and other government infrastructure

The State Government of Victoria has launched its 2nd Victorian Renewable Energy Target (VRET) auction to support the development of ‘at least’ 600 MW of clean energy capacity. The auction process will be conducted through the Department of Environment, Land, Water and Planning (DELWP) (see Victoria To Seek Minimum 600 MW RE Under VRET2).

Energy generated by this capacity will match the government’s electricity consumption for Victorian hospitals and schools, Melbourne’s entire train network and other government infrastructure and services, aligned with the state’s target to have 40% of renewable energy capacity in the total electricity mix by 2025, and increasing to 50% by 2030.

Round 2 of the auction process is expected to create at least 2,000 new jobs, and attract AUD 1 billion ($732 million) in capital expenditure while bringing down wholesale electricity prices. Winners will secure contract-for-difference (CFD) support agreements that will include both a strike price of AUD per MWh for 10 years, and a payment cap of net payment from the government.

Administration says this tender round has ‘strong local content requirements’ and ‘robust obligations’ on proponents. The auction also has strengthened network requirements to ensure projects can be connected quickly.

An industry briefing is scheduled for September 8, 2021 and final proposals will be accepted till November 9, 2021. Successful projects will be declared around mid-2022. Tender details are available on the government’s tenders website.

Under VRET1 round, the government selected 6 wind and solar projects with 928 MW capacity, as against 650 MW tendered originally. Solar power capacity worth 254.6 MW was awarded during the process (see Victoria Awards 928 MW New RE Capacity).

VRET2 follows the state government’s EIF round 2 call for innovative, emerging renewable energy technologies with potential for commercialization launched in August 2021 (see Victoria Seeking RE Technologies Under EIF Round 2 Launched).

Anu Bhambhani

Anu Bhambhani is the Senior News Editor of TaiyangNews

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Anu Bhambhani