‘Cold showers, meals, homes’: Labor accused of leaving Victoria’s energy system vulnerable

Energy experts are warning that any delays to controversial transmission projects could lead to energy shortfalls, as coal fired power stations close and the state faces serious gas shortages.

Labor has been accused of making Victoria’s energy system more vulnerable because it is relying on the rollout of controversial transmission projects to keep the lights on.

Energy experts are warning that any delays to the projects could lead to shortfalls, as coal fired power stations close and the state faces serious gas shortages over the next decade.

Analysis of the Australian Energy Market Operator’s new 25-year road map calls for a 60 per cent increase in renewable energy in Victoria by 2030 to achieve climate targets.

It did not include nuclear energy, which the Coalition has proposed for coal fired power station Loy Yang in the Latrobe Valley, because it is currently banned.

The Coalition wants to build seven nuclear plants at the sites of retiring coal-fired power stations.

The report states that 23GW of new wind and solar, including 9GW of offshore wind is required to achieve net zero emissions by 2050.

But this will require increased network capacity – hundreds of kilometres of poles and wires – from the VNI West and Western Renewables Link transmission projects.

AEMO in 2020 warned that a new interconnector between Victoria and NSW should be completed by 2027-28, while Western Renewables Link was expected to be finished in 2025-26.

But VNI West is now not expected to be operational until December 2028, with Western Renewables Link due in July 2027.

Victoria is also relying on interstate projects to be completed on time, as well as a combined $1.4bn worth of grid upgrades between 2030 and 2033.

Curtin University energy economist Dr Liam Wagner said the projects needed to “stay on track” because it would reduce the cost of transitioning to renewables and maintain supply security in the network.

“The real risk is that the state has electricity shortages,” Dr Wagner said. “You do not want the state to go black.”

State Opposition energy affordability spokesman David Davis warned the state “urgently” needed new natural gas supplies to combat the prospect of “cold showers, cold meals, cold homes”. Picture: NCA Newswire

If work is delayed, experts said Victoria may need to extend the life of coal fired power stations, build storage projects, as well as consider gas import terminals and diesel generators to mitigate the risks of blackouts.

State Opposition energy affordability spokesman David Davis said: “This report reflects the vulnerability of Victoria’s energy system following a decade of mismanagement under Labor”.

“We urgently needs new natural gas supplies to be brought to market or Victorians may face the prospect of cold showers, cold meals, cold homes and even higher energy bills,” he said.