3.5 GW submitted in Victoria's first renewables auction

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The Energy Minister of the Government of Victoria has announced that the Australian state's first large-scale renewable energy auction attracted bids amounting to over 3,500 MW generation capacity. This is over five times the capacity that the government planned to allocate.

The so-called Victorian Renewable Energy Targets (VRET) Reverse Auction called for bids for up to 550 MW of large-scale, technology-neutral renewable energy, and up to 100 MW of large-scale, solar-specific renewable energy. It is the largest renewable energy auction held to date in Australia.

Developers have submitted more than 15 proposals for new wind and solar projects in the state, which is located in the south-east of Australia. All of the projects have approvals in place.

The Minister called the bids "hugely competitive" and disclosed that the winners will be announced later this year.

The successful bidders will be awarded commercial contracts and 15-year ‘Support Agreements’ with the State of Victoria to ensure revenue certainty for renewable energy projects.

The Ministry expects that the 650 MW projects awarded will bring up to AUD1.3 billion (US$1.01 billion) investment to the state, as well as creating 1,250 construction jobs and 90 ongoing jobs.

This auction forms part of the Victorian Renewable Energy Auction Scheme (VREAS), which was established to support achievement of the Victorian Renewable Energy Targets (VRET). These targets seek to ensure that 25% of the state’s electricity generation comes from renewable sources by 2020, rising to 40% of generation by 2025.