Taylor attacks ‘reckless’ state over renewables bill

Victoria’s energy targets have been savaged by the federal government over who will foot the $370 million bill for upgrading transmission.

Battle lines: Upgrading transmission to handle Victoria’s green energy could cost $370m.

Victoria’s ambitious renewable energy targets have been savaged by the federal government over concern a $370 million bill for upgrading transmission to cater for big slabs of wind and solar power will hurt electricity consumers in the country’s ­southern states.

The Australian Energy Market Operator, which runs the nation’s power grid, has proposed “urgent” transmission investment in western Victoria over concern the state’s existing network will fail to cope with a surge in clean energy supplies, potentially sparking a long-term price jump for users.

Up to 6000 megawatts of large-scale wind and solar generation will enter the grid in a decade with a third of that supply due to come online by next year, driven by an increase in the state’s renewable energy target to 50 per cent by 2030.

Energy Minister Angus Taylor said the Victorian government had been reckless and failed to properly prepare for how the state’s stretched power grid would handle major new renewable generation sources in areas of the state without sufficient transmission capacity.

“We remain concerned that reckless Victorian state government actions are hurting Victorian, Tasmanian and South Australian energy consumers,” Mr Taylor said. “The Victorian government has thrown taxpayer dollars at renewable developments in western Victoria, with no thought as to how these will properly connect into their grid.

“Victorian consumers will be now charged hundreds of millions of dollars to patch up the Victorian government’s poorly planned market interventions.”

The inflammatory comments risk stoking tensions with Victoria’s Energy Minister Lily D’Ambrosio, who has voiced concern over the failure of Mr Taylor to convene a single meeting this year with state energy ministers to discuss national energy and emissions policies.

The move by AEMO reflects a pressing need for major investment in transmission as the power grid moves away from a reliance on coal generation to wind, solar, pumped hydro and gas.

AEMO warned last month of new market risks from the retirement of coal-fired power plants in Victoria which could require a bigger shift to renewables and increased transmission links with NSW to ensure stable supplies.

With EnergyAustralia’s Yallourn coal plant, which generates 12 per cent of the state’s electricity, due to start shutting units from 2029, AEMO said it was working to ensure sufficient supplies and investment signals were in place for replacement generation.

The federal government-owned Snowy Hydro has also weighed in to the transmission debate, lobbing a proposal to Victorian Premier Daniel Andrews requesting his backing for a power line that can deliver huge slabs of electricity directly to Melbourne from the Snowy scheme.

The plan for western Victoria, to be released today, envisages major transmission works, including a terminal station north of Ballarat and long-distance voltage lines between Bulgana and Sydenham, with the final component not due until 2025.

The design and location of new infrastructure required has yet to be finalised.

It will undergo a competitive tender process with an update due later this year.