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Energy touches every part of our lives. From work and education to travel and play, it is an integral part of our social fabric.

The way we harness energy has changed dramatically over time. And now, we’re seeing another significant shift in our energy story.

Today, we are coming full circle. We are again looking to the earliest sources – sun, wind and water. Enhanced by our technological advancements to generate clean, sustainable energy.

Why we are transitioning to renewable energy

Due to global emissions, the impact of climate change will affect all of us. Global greenhouse gas emissions continue to rise when they need to be rapidly falling. And with the energy sector one of the biggest contributors to global emissions, the transition to clean, zero-emissions renewable sources is necessary.

The main source of Victoria’s emissions is burning fossil fuels – like coal, oil, and gas – for energy and transport.

Where Victorian emissions come from

Diagram: Where Victoria's emissions come from by industry. Energy (approx 110 - 40 MTCO2e). Transport (approx 40 - 20 Where Victoria's emissions come from by industry diagram. Energy (approx 110 - 40 MTCO2e). Agriculture (approx 20 - 5 Where Victoria's emissions come from by industry diagram. Energy (approx 110 - 40 MTCO2e) IPPU (approx 5 - 10 Where Victoria's emissions come from by industry diagram. Energy (approx 110 - 40 MTCO2e) waste (0 - 5 Where Victoria's emissions come from by industry diagram. Energy (approx 110 - 40 MTCO2e). LULUCF - Trees in forests and plantations absorb emissions as they grow.

In 2019, the energy sector accounted for 70% of Victoria’s emissions, while transport accounted for 25%.

Today, we still rely on coal for 60% of our electricity generation.

We recognise the urgency – a timely transition is crucial to limiting global warming to 1.5 degrees.

Victoria's climate has changed

If global emissions continue to increase, in the 2050s Victoria may experience... Average annual temperature increase of up to 2.4 degrees Celsius. Longer fire seasons, with up to double the number of high fire danger days. Decline in alpine snowfall of 25-75%. Decline in cool season rainfall. More intense downpours. Sea levels rising by around 24 cm. Double the number of very hot days. Victoria's climate has changed. Temperature increase of 1.2 degrees Celsius since 1910. Decrease in average rainfall. Significant increase in fire danger in spring.

Our plan for change

We have nation-leading renewable energy and storage targets.

Victorian Renewable Energy Targets

  • 25% by 2020 (achieved)
  • 65% by 2030
  • 95% by 2035.


  • at least 2.6 GW of energy storage capacity by 2030
  • at least 6.3 GW by 2035 - that's enough renewable energy to power around half of Victoria's current homes at their peak energy use.

How we are transitioning

The transition is happening all around us. We are seeing:

  • large-scale solar and wind farms and storage solutions, such as utility-scale batteries
  • the retirement of increasingly expensive and unreliable coal-fired power stations as we move away from fossil fuels
  • the pioneering of innovative energy sources, such as renewable hydrogen and offshore wind
  • a wave of electrification is seeing us move away from gas in our homes to take advantage of lower prices and deliver more climate-friendly energy efficient homes
  • new technologies that let people take control of their energy, such as rooftop solar, neighbourhood and household batteries and electric vehicles
  • the delivery of new and upgraded energy infrastructure around the state ensures our clean energy is available to all.

Acting now also presents a golden opportunity for all Victorians. It means:

  • jobs – both now and for future generations
  • economic development through new sectors
  • decentralisation of power – giving people more control over their energy and saving them money on their power bills simultaneously.

Along this journey, we will meaningfully engage with communities to bring the best ideas to the table – as we know that change must happen in a fair, safe and sustainable way.

And in the face of this period of rapid technological change in the energy sector, we’ll ensure our policy settings evolve to meet our objective of delivering a cleaner, cheaper and stronger energy system for all.

Page last updated: 05/02/24