The Second Victorian Renewable Energy Target Auction (VRET2) is now open, aiming to bring online at least 600 megawatts (MW) of new renewable energy capacity in Victoria.
The energy generated by VRET2-supported projects will match the Victorian Government’s electricity consumption for Victorian hospitals and schools, Melbourne’s entire train network and a range of other government infrastructure and services.
VRET2 will also help meet Victoria’s legislated renewable energy targets of 40% by 2025 and 50% by 2030.
VRET2 projects are expected to create at least 2,000 new jobs, attract $1 billion in capital expenditure, and put downward pressure on wholesale electricity prices, thereby reducing bills for every Victorian household and business.
The tender pack, as well as supplementary material such as technical factsheets, are now available on the Buying For Victoria website.
On 12 October, the VRET2 Auction tender period was extended by 4 weeks, in recognition of the impacts of the coronavirus (COVID-19) global pandemic on project development. The VRET2 auction will close at 2pm on Tuesday, 7 December 2021 (AEDT). It is anticipated that the Victorian Government will announce the successful VRET2 projects in Q3 2022.
VRET2 fact sheet
Frequently Asked Questions (FAQs)
Industry Briefing Session
An Industry Briefing Session was held on 8 September 2021 to assist renewable energy developers understand the VRET2 auction process, including eligibility and evaluation criteria. The presentation was followed by a Q&A session.
The presentation slides and a questions and answers summary from the event are available below and on the Buying For Victoria website
Community Engagement and Benefit Sharing Guide
The Department of Environment, Land, Water and Planning (DELWP) has recently updated its Community Engagement and Benefit Sharing in Renewable Energy Development in Victoria: A guide for renewable energy developers. This Guide outlines leading practice community engagement and benefit sharing for renewable energy development in Victoria, as supported by case studies that are primarily Victorian.
It sets out government expectations for community engagement and benefit sharing and should inform VRET2 submissions and broader renewable energy developments in Victoria. The Guide is required reading for developers who may wish to participate in VRET2.
An online briefing to provide renewable energy developers and the wider community with an overview of the updated Guide was held on 4 August 2021. The presentation slides and an FAQ summary from the event (PDF, 141.1 KB) can be found below.
Regional Community fact sheets
Regional community factsheets outlining key social licence considerations, local resources and contact details for each region have been developed. These factsheets aim to assist developers in delivering the best possible outcomes for local communities and can be used to inform the development of community engagement strategies, benefit sharing programs, and social impact assessments.
VRET2 Market Sounding
The design of VRET2 has been informed by key findings from the VRET2 market sounding process that took place from September-October 2020. The aim of the process was to test industry interest and capacity for new renewable energy projects. This included the release of a public consultation paper as well as a series of targeted meetings with industry and community organisations. Various parties provided input and shared perspectives on matters to inform the auction design, including:
- contracting arrangements
- dispatchability and energy storage solutions
- network support services
- economic development
- social licence and community engagement
Market Sounding frequently asked questions
Market Sounding disclaimer
The market sounding was an information gathering exercise and is not a part of the procurement process.
PricewaterhouseCoopers (PwC) was engaged to conduct targeted meetings on behalf of the Department of Environment, Land, Water and Planning (DELWP). Due to time constraints, DELWP had to limit the number of organisations PwC could meet with as part of the formal market sounding process. Involvement in market sounding meetings will not advantage or disadvantage an entity in the VRET2 auction process.
It should also be noted that the source of information, for example, through meetings or through written responses will have no bearing over the importance given to the information by DELWP.
Page last updated: 12/10/21