ZAIDA GLIBANOVIC
By ZAIDA GLIBANOVIC
THE state government confirmed its commitment to bringing the SEC back into action at the budget announcement on Tuesday, May 23.
Last year, the state government’s successful election pledge to bring back the SEC gave minimal detail, but Tuesday’s budget shed a little more light regarding some specifics.
The budget papers indicate a $1 billion fund to bring back the State Electricity Commission (SEC), re-establishing government-owned energy and investing in renewables. The investment in the SEC will help deliver 4.5 gigawatts of power – the equivalent replacement capacity of Loy Yang A – through renewable energy projects.
The state government says the Victorian Budget 2023/24 starts investment in the SEC to drive jobs in renewable energy while also investing in protecting Victoria’s natural environment and helping Victorian families with the cost of living relief.
Since 2019/20, the state government has invested $4.5 billion to accelerate the energy transition by increasing renewable generation capacity, strengthening networks, and encouraging households to take up rooftop solar with the Solar Homes program.
The SEC set-up has already begun with an interim chief executive appointed, alongside six of Australia’s most prominent energy experts and business leaders to an expert advisory panel that will guide the SEC’s operations.
The state government has also launched a market search for the SEC’s pioneer investment and has already invested $21 million to prepare the SEC for its new role in the energy market, which includes a presence in Morwell and Melbourne with a promised $24 million to come within the following year.
Latrobe City Council welcomed the state government’s commitment to bring the SEC back in Morwell.
Latrobe City Council Mayor, Kellie O’Callaghan welcomed the confirmation of an initial $1 billion investment towards delivering 4.5 gigawatts of power through renewable energy projects.
“Our community has a long history of powering the state, and we look forward to continuing to play a leading role in keeping Victoria’s lights operating but in a sustainable way,” she said.
“We call on the government to consider fast-tracking the commitment considering (last Tuesday’s) confirmation that native timber logging will cease at the end of the year, directly impacting hundreds of workers at the Maryvale Mill.
“Fast-tracking the establishment of the SEC and associated renewable energy projects will provide new jobs and industry, which is critical in aiding in our region’s transformation.
“We remain committed to working collaboratively with the Victorian government; together, we can achieve a sustainable energy future that supports worker transition, the creation of new and emerging jobs, training and development of our highly-skilled workforce and future workforce, while ensuring a considered transition for our community and protection of the environment.”
The State Budget strongly focuses on training the next generation of SEC workers.
Budget papers also revealed that Morwell’s TAFE campus would receive a Clean Energy Centre under the state government’s $50 million commitment to establish a TAFE Clean Energy Fund as part of the $170 million Building Better TAFE Fund.
The Latrobe City Council’s Transition Plan, ‘Our Transition,’ outlines a range of actions, including upskilling to meet current and future business and industry needs and improved education outcomes for the community.
Council said they would await further detail on the establishment of the TAFE Clean Energy Fund, which would support the creation of a $5 million Clean Energy Centre at TAFE Gippsland’s Morwell Campus Trade Skills Centre, to support the next generation of tradespeople to deliver SEC renewable energy projects. Council also said they would await further detail of the $12 million funding pledge to establish VET qualifications to deliver jobs and fund the business case for the SEC.
The Latrobe Valley still remembers the mass unemployment that occurred as a result of the SEC’s privatisation back in the 1990s.
The first SEC was formed in 1921. Other firms and groups ran power facilities in the state for many years, but by the 1970s, the SEC delivered energy to practically all of Victoria. The Kennett Liberal government then divided the commission’s functions in 1993 and sold them to private companies between 1995 and 1997. In terms of energy generation, the former SEC generated more than 90 per cent of Victoria’s electricity from coal facilities in the Latrobe Valley.
Wendy Farmer from the local advocacy group Voices of the Valley, said the SEC and TAFE funding was needed.
“It is absolutely needed with the changes happening across Latrobe Valley and Gippsland, we often say we’ve got all these schools but, we don’t have the people who have been trained in energy,” she said.
“We’ve had the announcement of the SEC, and to see the SEC come back in a different form which is okay, is really exciting because the government is giving young people the opportunity to actually get into the workforce with apprenticeships and it’s something that Latrobe Valley has needed for a long time.”
The five million dollars in TAFE Funding and the investment in a Morwell presence of the SEC, “Is an opportunity to keep our young people here,” Ms Farmer said.
Member for Eastern Victoria Harriet Shing said, “As our transition to renewable energy continues, the SEC will return power to public hands, create jobs in growth industries, and drive lower power bills for Gippslanders.”
