SEC back to accelerate Victoria’s transition to renewable, affordable energy
29 August 2024
More than 100 years ago electricity was still an emerging technology when the State Electricity Commission (SEC) was first established in 1918. Melbourne’s streetlights and trams were powered by electricity, but most households relied on wood, coal, candles and oil lamps.
The SEC played an important role connecting Victorian households to electricity throughout the 1920s, 1930s and 1940s. It also developed the power stations, transmission lines and distribution network that secured decades of economic growth and prosperity.
A century on, Victorian energy users face a new challenge. Our electricity infrastructure is undergoing an unprecedented transformation to meet the state’s net zero targets and continue to provide the affordable, reliable energy that consumers rely on.
The SEC is back as a publicly owned company to tackle these challenges on behalf of all Victorians. As part of this role, the new SEC is partnering with the private sector to invest an initial $1 billion in renewable energy generation and storage.
Leading the company’s board as inaugural chair is the respected energy industry leader Simon Corbell who has more than 20 years of experience across investment, policy and regulation.
Mr Corbell believes the SEC has an important role to play in accelerating the pace of Victoria’s transition to renewable energy.
“As a government owned renewable energy company, the SEC can invest together with private sector partners before market signals are strong enough to incentivise others,” Mr Corbell said.
The SEC has already made a significant investment. In November 2023, $245 million was allocated to the Melbourne Renewable Energy Hub (MREH) - a 600MW battery project being developed by Equis Australia in Melbourne’s north-western suburbs.
The decision to support MREH was guided by SEC’s three investment principles: public purpose, market enablement and sustainable financial returns.
Mr Corbell explains this approach, saying it “considers how Victorians can co-own electricity assets, while also attracting private investment to address system gaps.”
The principles promote the development of new technologies, and ensure investments deliver sustainable returns that can be reinvested in more generation and storage projects.
In the case of MREH, the SEC’s investment allowed the project to begin immediately and doubled the size of one of the battery units.
Alongside its investments in large-scale projects, the SEC is continuing its legacy of supporting Victorian households to enjoy the benefits of electricity.
Work is underway to make the SEC a ‘one-stop shop’ for Victorians wanting to reduce their energy costs by switching to all-electric homes. Information, support and practical tools are being rolled out to show households how to make the switch.
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