Victoria launches second renewables auction of 600MW, with stronger network requirements

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The state is hoping to stimulate renewable investment by improving connectivity to its grid. Image: Trina Solar.

The Australian state of Victoria has launched its second Victorian Renewable Energy Target (VRET) auction for 600MW of energy projects, which will feature strengthened network requirements to ensure projects can be easily connected to Australia’s grid.

Launched yesterday (31 August), the tender will close on 8 November, with successful projects expected to be announced mid-2022.

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The second auction has stronger network requirements so that projects can be connected to the grid quickly given the backlog of projects waiting connection to Australia’s National Electricity Market (NEM). It is being delivered alongside the Australian Energy Market Operator (AEMO) to mitigate grid connection risks.

Last month (3 August), the state unveiled six grid upgrade projects as part of efforts to unlock new renewables investment. Meanwhile, the new chief of AEMO said he wanted the country’s grids to be capable of handling 100% renewables by 2025.

The auction comes after Victoria started to test industry appetite for new renewable projects in September last year as a way to bounce back from the pandemic. The new auction is expected to deliver more than 2,000 new jobs and AU$1 billion worth of economic investment.  

The projects will be used to power Victorian hospitals and schools, Melbourne’s entire train network and a range of other government infrastructure and services, the state said.

More information on the auction can be found here.

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