Ms THEOPHANOUS (Northcote): It is with great pleasure that I rise to speak in support of the Energy Legislation Amendment Bill 2021, which will help deliver the next step in our rapid transition to renewable energy. This government has always led the way with its ambitious vision for a more sustainable future that will benefit our environment and create secure jobs. We have done this because we take our responsibility to the people of Victoria and indeed future Victorians very seriously, and it is exciting stuff. This is the stuff my community is talking about on a daily basis. It is the topic of conversations around the dinner table, in the classrooms or over coffee with friends. We want to know that we are at the forefront of climate action, doing what we can to secure the future of generations to come, and it has been my honour, as the member of the Northcote, to stand alongside these voices, the voices of my community, and call for strong and rapid action to address climate change. And I will continue to do that, whether that be on emissions reductions, decarbonising our economy, protecting our biodiversity or making the most of opportunities like residential energy efficiency or emerging energy technologies.
Our actions today are already delivering incredible benefits for the environment and for the people of Victoria. This is clear in our work delivering Victoria’s Climate Change Act 2017, which establishes our long-term goal of delivering zero net emissions by 2050. It is clear in our interim emissions targets, which will drive our delivery of 50 per cent emissions reductions by 2030, and it is clear in our decision to legislate for 50 per cent of all electricity generated in Victoria to be sourced from renewable energy by 2030. But we know that words or even targets on their own are not enough. They have to be backed up by laws, regulations, programs, initiatives and funding to achieve them—and achieve them in a way that ensures no Victorian is left behind—and that is exactly what we have done and what we will continue to do.
When Labor came into government, investment in renewable energy was stagnating thanks to years of neglect and inaction from those opposite. Almost seven years later their federal colleagues continue to drag their feet when it comes to renewables and climate action. The policy uncertainty there is staggering. Despite the rest of the world having embraced the need to transform our energy sector and reduce emissions, the coalition continue to view climate change as a nuisance rather than as an existential challenge. At the time Labor took government, renewable energy as a share of power generation sat at just over 10 per cent, going nowhere fast. Now Victoria is leading one of the most rapid transitions to renewable energy in the world. Since 2014 we have more than doubled our renewable energy output and have comfortably hit our first renewable energy target of 25 per cent at the end of 2020. We have set clear targets, created certainty for the renewables sector and backed it up with the nation’s largest renewable energy reverse auction, which supported projects delivering 928 megawatts of clean, sustainable power. The 2020 budget also saw us deliver an unprecedented $1.6 billion to supercharge our work, supporting the creation of renewable energy hubs across the state, driving down emissions and creating jobs. There are a lot of numbers and figures to point out, but as I said, this is exciting stuff. This is our journey to achieve net zero emissions and a sustainable future.
As we continue our rapid transformation of the energy sector in our economy we need to ensure that our legislative framework is fit for purpose and that it supports rather than hinders our vision for the future. This bill makes changes to make it easier to promote and deliver the technologies and business models we need to drive the next phase of our energy transformation. Central to this are the amendments to the implementation of a regulatory sandbox framework, something that is being established across the national energy market. The amendment establishes the Essential Services Commission’s power to issue trial waivers that allow innovators and businesses to trial new concepts on a smaller and time-limited scale in a relaxed regulatory environment with appropriate safeguards in place. In clearer terms, technological innovation and the development of new technologies are and will continue to be critical to our energy transformation. Each and every day we are seeing passionate and dedicated individuals creating and trialling new technologies and business models that will represent the future of energy production. Indeed many of the technologies that will drive emissions reductions in the future have not yet even been conceived.
I would like to spend a few moments talking about renewable hydrogen, because this is at the cutting edge of zero-emissions energy technology and production. To give a bit of a crash course on renewable hydrogen, it is the energy that is created when water is split into its component parts—hydrogen and oxygen—using what is called an electrolyser. When renewable energy like solar or wind is used for the electrolysis, or the splitting, the hydrogen produced is known as renewable hydrogen, and it is a zero-emissions fuel. The application potential of this zero-emissions fuel is immense, particularly across Victoria’s industrial and transport sectors as well as in Victorian households and businesses. It is extremely flexible too. It can be used as a fuel for transport or heating, it can be used as a raw material in industrial processes, it can be stored as a renewable energy for later use and it can be transported on trucks or in ships, so it has immense export potential.
This is why our government has released the Victorian Renewable Hydrogen Industry Development Plan to set out a blueprint and give business confidence to this growing sector and these emerging technologies. The plan articulates our understanding of the benefits and opportunities for Victoria in renewable hydrogen and how we can leverage our advantages to activate market possibilities. I commend the Minister for Energy, Environment and Climate Change for this piece of work, which at its heart is about decarbonising our economy and accelerating that decarbonisation. It is incredibly exciting to see this plan alongside tangible investments from our government.
At the 2020 budget we saw $108 million invested to fast-track the next generation of renewable energy. As part of this fund our government has committed $10 million to accelerate Victoria’s hydrogen industry, with renewable hydrogen pilots and demonstrations. At the same time Swinburne uni will be home to a Victorian hydrogen hub, a major precinct to explore new hydrogen technologies, including clean energy vehicles and hydrogen storage containers.
Here is the thing: not every trial will be a success, not every technology will work and not every business model will be viable, but the world is going to look a lot different in 30 years, and if we do not act now to expand our possibilities, then we are going to be left behind. This bill is about making changes in real time to move us towards net zero. It is about giving the renewables sector the space and the regulatory framework they need to have confidence to move forward. This includes with technology like virtual power plants, neighbourhood batteries, microgrids and other localised models that are very interesting to residents in my electorate of Northcote. Northcote locals have embraced solar power with gusto, with over 14 per cent of dwellings having solar systems installed, and that number is only getting larger thanks to our Solar Homes program. I have had many exciting conversations with locals who would love to make the most of the opportunities solar offers by creating connections across our community.
Another important aspect of this bill enables the Minister for Energy, Environment and Climate Change to set emissions reduction targets for the 2022–25 period under the Victorian energy upgrades program. This program is one of the central pillars for delivering energy-efficient households and reducing our reliance on gas in the home. It provides households with discounted energy-efficient products and services, including subsidies for replacing major appliances. Almost 2 million households have benefited from this program since its inception in 2009. Swapping out your light bulbs, showerheads and heater may not seem like much, but that is the beauty of this program: it puts the power of change directly in the hands of Victorians, and very small steps can make a big difference. I want to take this opportunity to acknowledge the work of a local organisation, Get Cooper Off Gas, who have been working to raise awareness across my community about the benefits of this program and more broadly the benefits of households transitioning away from gas.
Another aspect of this bill is strengthening the government’s powers to expedite transmission projects in the interests of Victorian energy users. A great example of this is the Victorian Big Battery project in Geelong. As a state we need to be agile and responsive in our efforts to transform our energy sector. Projects like this will ensure we are leading the way rather than dragging behind, as those opposite would have us do. This bill moves us ahead in real time. It is built of the hard work of this Labor government and dedicated individuals working in our government agencies as well as genuine grassroots environmentalists who have been working constructively alongside us. From conversations with residents across my electorate, I know my community is excited by the transformations already underway in our energy sector. They are proud to be part of a state that is leading the way on renewable energy and emissions reductions. They have voted with their feet when it comes to taking up opportunities to access solar and energy-efficient upgrades, and they have embraced the vision we have for a future that is both sustainable and fair. This bill ensures we can keep delivering for the people of Northcote and Victoria. I commend the bill to the house.
