Vic launches VRET2 to drive renewables investment

Lightbulb planted in ground with seedling sprouting inside (VRET2)
Image: Shutterstock

The Second Victorian Renewable Energy Target Auction (VRET2) is now open, aiming to bring online at least 600MW of new renewable energy capacity in Victoria.

The energy generated by VRET2-supported projects will match the Victorian Government’s electricity consumption for Victorian hospitals and schools, Melbourne’s entire train network and a range of other government infrastructure and services.

VRET2 will also help meet Victoria’s legislated renewable energy targets of 40 per cent by 2025 and 50 per cent by 2030.

VRET2 projects are expected to create at least 2,000 new jobs, attract $1 billion in capital expenditure, and put downward pressure on wholesale electricity prices, thereby reducing bills for every Victorian household and business.

In addition, VRET2 will deliver positive employment outcomes through the Local Jobs First Act 2003 and by setting requirements for local apprentices, trainees and cadets, and encouraging competition to support increased skills and workforce development through the Major Projects Skills Guarantee (MPSG).

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This ensures Victorians benefit directly from major infrastructure projects undertaken in the state and ensures continued growth of the next generation of skilled workers. 

Eligibility and evaluation criteria for VRET2 also includes strong but achievable local content requirements to support new investment and jobs in Victoria’s renewable energy supply chain.

VRET2 will have strengthened network requirements and support from the Australian Energy Market Operator (AEMO) to mitigate grid connection risks.

The tender pack is available on the Buying For Victoria website. An Industry Briefing Session will be held on September 8, 2021, to assist renewable energy developers understand the VRET2 auction process, including eligibility and evaluation criteria. Register for this session via the event page.

The VRET2 auction will close at 2pm on Tuesday, November 9, 2021. It is anticipated that the Victorian Government will announce the successful VRET2 projects around mid-2022.

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