MinterEllison advises on Victorian Renewable Energy Targets Auction, VRET2.
November, 2022 - Australia
Leading law firm MinterEllison has advised Victoria's Department of Environment, Land, Water and Planning (DELWP) on designing and implementing its second Victorian Renewable Energy Target reverse auction program (VRET2). The program provides investment certainty in the construction of new energy generation projects.
VRET2 aims to ensure that 40% of the State's electricity generation comes from renewable sources by 2025 and 50% by 2030. Through the reverse auction program, the Victorian Government awarded commercial contracts in support of over 623 MW of new solar energy capacity, including four big batteries.
VRET2 will promote renewable energy generation capacity, achieve emissions reduction targets under the Climate Change Act 2017 (Vic), and seeks to limit the State's exposure to high wholesale electricity prices through a competitively sourced contract for difference for electricity.
MinterEllison advised the Victorian Government on the design of the support agreements, negotiation of support agreements, the conduct and risks mitigation of the tender process, and compliance and transparency to the competitive tender process.
"We've worked in close partnership with DELWP on many key Victorian Government energy and climate change initiatives, and we are very proud to have advised on the VRET2 reverse auction for Victoria," said MinterEllison lead advisor and Special Counsel Fiona Lewis.
"During a time of challenging industry market conditions, we assisted the Victorian Government in designing and implementing the reverse auction process, which achieves both private sector commitment and a value for money outcome for the State."
MinterEllison is proud to advise the Victorian Government on energy and climate change projects in Victoria. We have advised DELWP on VRET1, the implementation of Victoria's renewable energy zones, and the Victorian Big Battery Project.
