Victoria has surpassed its 2025 renewable energy target, with renewables accounting for 44.6 per cent of electricity generation last year, strengthening the state’s energy supply while keeping wholesale power prices lower than anywhere else in the country.
The Allan Labor Government says the result places Victoria well ahead of its legislated 40 per cent target and keeps the state on course to reach 65 per cent renewable generation by 2030 and 95 per cent by 2035. The achievement comes as households and businesses continue to face cost-of-living pressures, with energy affordability remaining a central concern.
Minister for Climate Action Lily D’Ambrosio said the expansion of renewables was directly linked to lower power prices and greater reliability across the grid. “We know the cost of living is tough for many Victorians, that’s why we’re building the energy future that will help lower power prices and deliver real benefits for households and businesses.”
Victoria now hosts close to 100 large-scale renewable projects in operation, including 54 solar farms. Combined with rooftop systems, solar supplied around 16 per cent of the state’s electricity in 2025. Wind generation played an even larger role, producing about 24 per cent of total power and pushing the state beyond its target.
Further capacity is already in the pipeline, with 10 additional onshore wind farms approved and a long-term plan in place for offshore wind development. The government argues that this steady expansion has helped Victoria maintain the lowest wholesale electricity prices in the country over the past year.
Average wholesale prices stood at $78 per megawatt hour, compared with $103 in New South Wales, $96 in Tasmania, $87 in South Australia and $85 in Queensland. The government attributes this gap to sustained investment in large-scale renewables and supporting infrastructure.
Part of that push includes the Development Facilitation Program, designed to fast-track priority energy projects. The program has unlocked almost $9 billion in investment across 25 developments and is expected to support more than 3,000 jobs during construction and ongoing operations.
Once completed, the projects are forecast to generate enough electricity to power more than 700,000 households each year. Battery storage linked to these developments is expected to be capable of meeting evening peak demand for up to 2 million homes, addressing concerns about reliability as the energy mix shifts.
The announcement was accompanied by pointed criticism of the opposition, with the minister questioning the Liberal leader’s stance on climate policy. “Jess Wilson needs to explain why her first instinct was to associate with politicians that undermine climate science and block the renewable projects that keep energy reliable and bills low.”
With renewable generation continuing to rise and prices remaining comparatively low, the government is positioning Victoria’s energy transition as both an environmental and economic strategy, arguing that steady construction and grid investment are now delivering visible outcomes for consumers.
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