By PHILIP HOPKINS
MORWELL Nationals MP, Martin Cameron, has called on state Energy Minister Lily D’Ambrosio to resign after a damning report from the Auditor-General found Victoria’s energy system faces massive dislocation due to bad planning when Yallourn W power station closes in 2028.
“Minister for Energy, Lily D’Ambrosio should resign. She has shown time and time again that she leads with ideology instead of common sense,” said Mr Cameron, who is Shadow Assistant Minister for Energy Affordability.
The Victorian Auditor-General found that the risk of a “disorderly energy transition” is “almost certain”, leading to supply shortages, skyrocketing energy prices and widespread job losses.
In the report, the Auditor-General also warned Victorians would face gas shortages as early as next year and confirmed “the current pipeline of generation and battery projects will not be enough to offset Yallourn’s closure from mid-2028”.
Mr Cameron said the Allan Labor government had set itself up for certain failure by accelerating the closure of coal-fired power stations without a proper plan to replace their baseload power.
“Labor has had 11 years to prepare for the transition away from coal-fired power, but repeated inaction and mismanagement of the grid mean Victoria is in a precarious position,” Mr Cameron said.
“The Auditor-General has now confirmed Labor will not meet its legislated 2032 offshore wind targets and has failed to consider the risks associated delaying approvals and auctions.
“I support a sensible and considered transition to renewables, but Labor’s plan is neither sensible nor considered.”
The new audit report found the state government has not adequately planned for the renewable energy transition, and risked plunging the state into blackouts after the Yallourn coal power station closes.
The Victorian Auditor-General said delays to key projects such as offshore wind and poles and wire projects had left little buffer in the state’s electricity generation and storage pipeline in the period immediately after Yallourn shuts in mid-2028.
“If forecast gas shortfalls persist or south-eastern Australia experiences prolonged drought conditions, Victoria will face constraints on gas-powered and hydroelectric generation respectively,” the report tabled in Parliament said.
Victoria has legislated renewable energy targets of 40 per cent by 2025, 65 per cent by 2030 and 95 per cent by 2035. The report said the state government’s offshore wind program would not deliver its separate legislated two gigawatt target by 2032, citing the delays to the approval of a port – Hastings in Western Port was vetoed on environmental ground by the federal government – to support wind turbine assembly and construction.
Also, offshore wind auctions, which were scheduled to begin in September, have since been delayed.
The Auditor-General said the Department of Energy, Environment and Climate Action’s had failed to show it had considered the full extent of project delays, weather variation and contingencies in its advice.
“AEMO [the Australian Energy Market Operator] and the Australian Competition and Consumer Commission are also concerned that there will not be enough gas to meet Victoria’s gas-powered electricity generation needs,” the report said.
“This could mean that the current pipeline of generation and battery projects will not be enough to offset Yallourn’s closure from mid-2028.
“The department has limited short-term options to address potential electricity shortfalls and guarantee reliability in Victoria’s power supply. It expects Victoria’s allocation under the CIS [Capacity Investment Scheme] to strengthen supply by 2030.”
The report made four recommendations, which included greater monitoring of potential future power shortfalls from coal plant closures and increased co-ordination of transmission planning. All have been accepted by the Allan government.
