The Victorian Renewable Energy Auction Scheme
The Victorian Government has established the Victorian Renewable Energy Auction Scheme (VREAS) to support achievement of the Victorian Renewable Energy Targets (VRET). These targets seek to ensure that 25 per cent of the State’s electricity generation comes from renewable sources by 2020, rising to 40 per cent of generation by 2025.
In October 2017, the first auction will be open for bids under the VREAS. In this auction, the Victorian Government will award commercial contracts in support of up to 650 MW of new renewable energy generation.
The format of the auction will be a reverse auction with bids accepted for up to 550 MW of large scale technology neutral renewable energy and for up to 100 MW of large scale solar-specific renewable energy.
Bids from renewable energy projects will be submitted under a formal Request for Proposal (RFP).
The RFP will set out the detailed terms of participating in the auction, how proposals will be considered in relation to ‘value for money’, and the overall governance framework.
Successful proposals will be awarded a ‘Support Agreement’ with the State of Victoria to ensure revenue certainty for renewable energy projects.
The Victorian Government supports local supply chains for all renewable energy projects, and encourages both developers and suppliers to register with ICN Gateway at www.vicrenewables.icn.org.au
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