As a state, we have so much to offer.
But as we heard from industry – we can do even more to attract new investment, and back new opportunity for existing business.
It’s why we’re opening the door and rolling out the welcome mat – giving businesses certainty that ours is a state where they can invest, expand and innovate.
Through new land, dedicated support, and increasing trade opportunities, the Government is sending a clear message:
Victoria is open for – and to – business.
Not only will these reforms back Victorian industries and businesses – it means backing more high-quality, well-paying Victorian jobs.
Initiatives
Opening the door to growth also means enabling the supporting infrastructure that businesses need to thrive. That includes access to cheap and reliable energy.
Victoria has the lowest power prices of any state in the nation and the most ambitious renewable energy agenda in the country.
Already we’ve accelerated approvals and assessments for renewable energy projects, established the Gas Substitution Roadmap to help our state navigate the path to net zero emissions, and released our holistic plan to transition the Victorian economy to renewable energy, Cheaper,(opens in a new window)
Cleaner, Renewable: Our Plan for Victoria’s Electricity Future(opens in a new window).
While gas has a role to play in our energy transition, it’s a dwindling resource.
Victoria produces more gas than it consumes and has been a net exporter to other states for many years – but gas supplies in the Gippsland and other legacy basins are depleting. As the Lead Scientist has also confirmed, there are currently no proven and probable onshore gas reserves in Victoria.
Eastern Australia now faces the potential for gas supply risk despite the approval of massive increases in LNG export from Queensland gas fields in the last 10 years. The Australian Energy Market Operator (AEMO) forecasts a growing risk of peak day supply shortfalls in the east coast gas market with more significant risks from 2028.
New investment is needed if gas supply from 2028 is to keep up with demand from homes and businesses, and for gas-powered electricity generation.
Here in Victoria, we’re taking strong and decisive action. Earlier this year, we approved the only application made for new gas extraction in Victoria since we came to government, and have passed new legislation that paves the way for offshore gas storage projects. And as we work to protect gas supply for the businesses who need it most, we’re doing it in a commonsense way – supporting households to switch to electric appliances, while also ensuring Victorians can keep cooking with gas.
This builds on the existing supply and infrastructure proposals under development, spanning domestic offshore gas exploration, storage projects, pipeline infrastructure upgrades and gas import terminal projects.
Victoria is also working with AEMO, the Commonwealth and other relevant states to ensure a national, integrated response to this supply risk – that delivers certainty of supply to industry at a price that ensures businesses remain competitive. Several options to secure new supply are being considered, including import terminal proposals, where they meet planning and environmental requirements.
Victoria recognises existing Commonwealth controls on gas exports, the Australian Domestic Gas Security Mechanism and the Heads of Agreement with east-coast gas producers. In 2018, Victoria introduced a legislative framework that prevents any petroleum production licensee supplying petroleum to an LNG exporter unless the licensee has first taken all reasonable steps to supply that petroleum to a domestic customer. While the market operator has a role in forecasting and responding to gas supply security risks and Victoria has led reforms to e sure it can manage gas storage better, there is a need for stronger action – at every level of government.
As an issue that is impacting our national long-term energy security – we require national action. The Victorian Government is calling on, and committed to working with, the Commonwealth Government on a federal gas reserve – because Australian gas should go to Australians first.
We’re taking action at a state-wide level too. To start building the capability and markets to support the long-term needs of its industrial gas users, Victoria is releasing a Renewable Gas Directions Paper, to test options for developing a thriving renewable gas sector through the new Victorian Industrial Renewable Gas Guarantee. Renewable gases like biomethane and renewable hydrogen are the most likely technologies to decarbonise Victorian industry gas consumption where electrification is not an option.
This will not replace gas in the short or medium term, and does not diminish the need for urgent, significant and national reforms to shore up our supply of gas. It will, however, be an important component in decarbonising Victoria’s industrial sector in the longer term to support net zero emissions by 2045 and beyond.
Building on this work and the reforms outlined in Cheaper, Cleaner, Greener: Our Plan for Victoria’s Energy Future(opens in a new window), the Government’s Economic Growth Statement will:
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