Released today, the Victorian-Auditor General's Managing the Transition to Renewable Energy has found:
- Victoria will not meet its legislated 2032 offshore wind target.
- Key electricity transmission projects have been delayed.
- Victoria faces challenges in meeting its 2030 renewable energy target.
- Planning for Victoria's energy transition has not adequately considered risks and uncertainties.
- Gas shortages are expected from 2026.
- Victoria will need to rely on AEMO to safeguard Victoria's electricity supply.
The Victorian Government's own risk management framework shows the risk of a "disorderly energy transition is significant (severe/almost certain) as a risk rating."
The risk is described as: "A disorderly transition to renewable energy could result in job losses, supply disruptions, price volatility for households and businesses and community resentment."
The risk theme, "Reliable, sustainable and affordable energy," is regarded by the state's significant and strategic risk framework as the "ability to meet demand and deliver reliable, sustainable and affordable energy services" and is listed as a "significant" risk.
Shadow Minister for Energy, David Davis, said: "It is clear the Allan Labor Government has dropped the ball on managing the risk of the transition and energy reliability - meaning higher prices and less reliable power for Victorian households and businesses.
"This culpable failure by Labor puts the state at risk of a disorderly energy transition and risks the ability to deliver reliable, sustainable and affordable energy.
"Premier Allan and the Minister for Energy have never released the details of the Yallourn agreement, in contrast to the Eraring contract with the NSW Government, and consequently market participants cannot see the detail of this major input to Victoria's energy markets."
"The departmental response points to a spat with the Auditor-General and makes it less clear what the department will actually do in response."
