John MULLAHY (Glen Waverley) (16:49): It is a pleasure to rise in favour of the Victorian Energy Efficiency Target Amendment (Energy Upgrades for the Future) Bill 2025, and from the outset I would like to thank the Minister for Energy and Resources and Minister for Climate Action and her team for their efforts in bringing this important legislation to the house.
I am particularly pleased to speak on this legislation to highlight the incredible work the Allan Labor government has been doing to secure a sustainable and energy-efficient future for Victoria. We understand that we must secure a just and viable transition away from fossil fuels such that we are reliably powered by clean forms of energy. Boldly legislated renewable energy targets of 25 per cent by 2020, 40 per cent by 2025, 65 per cent by 2030 and 95 per cent by 2035 in conjunction with offshore wind generation targets of 2 gigawatts by 2032, 4 gigawatts by 2035 and 9 gigawatts by 2040 have established an ambitious framework for the government to work towards. Alongside our energy generation targets stand our energy storage targets of 2.6 gigawatts by 2030 and 6.3 gigawatts by 2035. The cumulative capacity delivered by these targets will provide affordable and clean energy while also delivering some $9.5 billion and around 59,000 new jobs within a 12-year period.
These aims are directly related to the substance of this bill, which seeks to modernise Victoria’s energy legislative framework. A transition of this scale means there will be new and different challenges that must be faced; therefore, to ensure we effectively address contemporary issues surrounding safety, efficiency and the protection of people and the environment, these reforms are necessary. As we all experience the cost-of-living pressures and the energy bills which contribute to that stress, it is important that we take measures to save energy and costs. It is recommended that lights and electrical appliances are switched off when not in use, globes are switched to LEDs, doors and curtains and closed and roofs are insulated. Transitioning from outdated gas heating and cooling systems to an upgraded and modernised electric system also saves money.
The Victorian government is also aiding in this process through the Victorian energy upgrades (VEU) program, an initiative which between 2022 and 2025 will save some 28 million tonnes of greenhouse gas emissions. By moving to efficient reverse-cycle air conditioners households can save up to $2940. Those transitioning to an efficient ducted reverse-cycle air conditioner can save up to $5460. The discounts are applied with the VEU-approved product is installed through an accredited supplier, ensuring quality and safety.
Additionally, to get the best deal on their bills, Victorians can access the Victorian Energy Compare website, a free and independent energy price comparison tool. Over the years, I have been able to do many a cost comparison for my constituents during the period of the $250 power saving bonus. The issue is that many people do not realise this tool is there to provide a good comparison. Often they will find that a better deal is available to them, but then they have got the issue of having to contact their provider and spend too much time on the phone. One lady who had some hearing difficulty and could not actually use a phone came into my office. I spent 3 hours and 30 minutes trying to get that constituent a better deal from her energy provider and also manage some other matters around credits that were on her account and things like that. But this tool is there for Victorians to ensure that they are getting the best deal they can from their retailer. Offering comparisons of more than 20 retailers, it helps people find the best and most appropriate deal for them. It is calculated that users can save some $330 a year on energy costs through this website.
Whether it be in investment in wind, hydrogen or solar, the decisions we make as a government also have sizeable implications for the energy prices that Victorians pay. This January the Australian Energy Market Operator released a report confirming that Victoria continues to have the lowest wholesale electricity prices across Australia. With a national average of $88 per megawatt hour across Australia, Victoria’s minimal $45 per megawatt hour is an outstanding result for our state. It serves as a clear indication that the record growth in renewable energy generation and storage in Victoria is meeting demand and therefore lowering prices.
I was delighted to join the minister at Wilson Transformer in Glen Waverley last month to tour their facilities. It is a wonderful local manufacturing business in the heart of Glen Waverley; I do not have much manufacturing in Glen Waverley. Wilson Transformer is an excellent company, one that is acting on climate change by delivering super batteries across the state which connect up our wind farms and our solar farms. They are also creating smaller batteries these days. They have plenty of jobs in Glen Waverley and also at their other site on the border, in Albury.
At a time when internationally there are rising costs of living this bill is important for families and businesses alike, as it builds on the success of the Victorian energy upgrades program. To align with our ambitious net zero emissions target, we are extending the VEU’s legislated end date by another 15 years, to 2045. We, however, understand that there is an alternative approach. There are some who revel in fantasies, pontificating on delusions of an alternate reality and seeking to distract, disturb and bring us back literally to the dark ages. The CSIRO has confirmed that the Liberal policy of nuclear would cost at least twice as much as renewables. Compared to the cost of $22 to $53 per megawatt hour for solar, nuclear would cost somewhere between $148 and $238 per megawatt hour. This ridiculous jump in price is not even including the financial burden of building a nuclear plant, which is estimated to cost at least $8.5 billion. The Climate Council’s research states that on average renewables would make up 99 per cent of electricity share by 2050 compared to 15 per cent if six new nuclear reactors were to be built by 2050. It will take us 10 years to get to 96 per cent renewables, whilst it will take 20 years to build one nuclear plant. Renewables already make up 39 per cent of energy generation here in Victoria, whereas nuclear makes up zero per cent. On any environmental, financial, practical or logical measure it is clear that the coalition’s nuclear fantasy is unachievable and nonsensical.
Instead of that we will support households and small businesses with sensible and targeted energy bill relief. In partnership with the federal government the state government is providing direct assistance to Victorians. Households will receive quarterly rebates of $75, amounting to $300 cumulatively, with the next instalment to be received automatically on 1 April, and I know this will make a material difference. Furthermore, as a former small business owner, I understand how important it is that we support small businesses in this state. That is why as part of the Energy Bill Relief Fund eligible small business will receive a one-off rebate of $325 on their electricity bill.
We are also supporting Victorians through the revival of the SEC, a government-owned renewable energy company. This will be owned by the people, operating for the public interest. As forementioned, by 2035 Victoria will need 25 gigawatts of new renewable energy in storage capacity to meet its targets. The SEC will contribute 4.5 gigawatts through its first two projects, at the Melbourne renewable energy hub and the SEC renewable energy park, powering more than a quarter of a million homes. This project alone will create hundreds of jobs, as we know that it will facilitate a viable transition. We need to build a renewable energy workforce.
It was wonderful earlier today to have Trades Hall organise an electrification briefing here at Parliament in conjunction with Environment Victoria and the Victorian Council of Social Service. We also had people from the Electrical Trades Union and representatives of the ASU as well to continue that conversation on ensuring that we transition to renewable energy at a quicker pace. We heard some stories with regard to people that are struggling to pay their bills at this time and that there are financial counsellors helping them. It was wonderful to have them here at Parliament. I commend this bill to the house.
