Rewiring The Nation To Supercharge Victorian Renewables

Media release
19 Oct 2022
Prime Minister

The Albanese Government’s Rewiring the Nation plan will fast-track Victorian Renewable Energy Zones (REZ) and offshore wind development to create new energy jobs across Victoria, unlock cleaner, cheaper and more secure energy and put downward pressure on prices.

The Commonwealth and Victoria have today signed an agreement to jointly fund Victorian offshore wind projects, REZs, and the Victoria-New South Wales Interconnector (VNI West) KerangLink. The Commonwealth, Victoria and Tasmania have also signed agreements on the Marinus Link interconnector.

The agreement between Victoria and the Commonwealth sets out:

  • $1.5 billion of concessional financing from Rewiring the Nation available for REZ projects in Victoria, including offshore wind projects;
  • A commitment to coordinate Victorian and Commonwealth regulatory processes to support the rapid development of the Victorian offshore wind industry;
  • Rewiring the Nation, through the Clean Energy Finance Corporation, will provide a concessional loan of $750 million for VNI West to ensure it is completed by 2028;
  • Victoria will contribute equally with the Tasmanian and Commonwealth Governments to a total 20 per cent of project equity to deliver Marinus Link.

Together, the Victorian REZ and offshore wind development will deliver new renewable power, driving down power prices, creating jobs and supporting reliability of electricity supply.

This follows the Commonwealth’s recent consultation on an offshore wind development zone off Gippsland – the first in the nation.

This announcement will supercharge regional jobs, with VNI-West KerangLink to unlock 4,000 MW of new power generation, supporting more than 2,000 direct jobs during construction and generating $1.8 billion in net market benefits - including for electricity users.

Marinus Link is also set to create 1,400 jobs in Victoria, and attract $1.5 billion in investment to the Gippsland region.

Australia’s electricity system is changing rapidly, but progress on critical transmission projects stalled under the former federal Government. The Albanese Labor Government is getting on with the job and working closely with states to deliver these vital projects on time and at lowest cost.

The Australian Energy Market Operator’s (AEMO) Integrated System Plan is the roadmap for Australia’s future grid – and Rewiring the Nation investments are guided by this blueprint to ensure the right projects are built at the right time.

Quotes attributable to the Prime Minister, Anthony Albanese:

“Rewiring the Nation has always been about jobs in new energy industries, delivering cleaner, cheaper and more secure energy, and bringing down emissions – today it begins doing just that.”

“This is an historic day for Victoria and for Australia with the rollout of these key projects putting us on track to be a renewable energy superpower.”

Quotes attributable to the Premier of Victoria, Daniel Andrews:

“Victoria has cut emissions by more than any other state, tripled the amount of renewable energy and created thousands of jobs. We’re not just talking about climate action – we’re getting on with it.”

“All of this means more jobs, cleaner energy and cheaper power bills for Victorians.”

Quotes attributable to Minister for Climate Change and Energy, Chris Bowen:

“This announcement today demonstrates the Albanese Government’s commitment to progressing the renewable transformation with the states and territories.”

“For too long, national energy policy has been ad hoc and hollow – today is another step in turning this around and putting reliable, affordable power and new energy jobs first.”

Quotes attributable to Victorian Minister for Energy, the Environment, and Climate Action, Lily D’Ambrosio:

“Victoria is leading the nation in the energy revolution, taking strong climate action and cementing our future as a renewable energy powerhouse.”

“Rewiring the Nation will help our ambitious offshore wind strategy and Renewable Energy Zones Development Plan, while giving more flexibility to our grid.”