Wednesday, 1 November 2023

 Nina TAYLOR (Albert Park) (17:45): My grievance is the opposition’s philosophical objection to state ownership of energy. I did hear a reference at some point in one of the speeches to Margaret Thatcher, and I think that sort of sets the scene for a pretty clear differentiation, I should say, from this side of the house – and a little bit around there as well – and the opposition, just putting it out there, and also, can I say, a deep resistance to the clean energy transition. They say ‘Yeah, yeah, yeah, we want to transition, but’ – there is always a ‘but’. Whether it is about electrification, whether it is about moving away from the reliance on gas, there is always a ‘but’. Or perhaps we go nukes or whatever it is in all the thought bubbles that they throw out there – anything they can do but support the clean energy transition. Then on the other hand we have the Greens political party, who are all about the fight – they will hold up the placards – but not about the fix. They just do not have the ticker to do the grunt work which we are doing, which is well underway with the SEC.

A further point I want to make, coming back to the opposition, is I do note that the member for Morwell said he – and I paraphrase – does not know what the SEC is all about, and I thought, you know, you could actually google it. I mean, the Minister for Energy and Resources, has she not been up-front and out there talking about the SEC? In fact I remember through the whole election campaign we were pretty up-front and forward about it. But to be the devil’s advocate, if you type in ‘SEC Victoria’, guess what, there are all these explanations about exactly what it is and what we are doing. We are very, very transparent on this front. I hope that offers some assistance to the member for Morwell and perhaps a little curiosity. I think the real point is he does not want to know what we are doing about this, because there is such resistance from the opposition. If he wanted to know, he might actually google it or listen to the minister for energy or in fact any number of colleagues –

Luba Grigorovitch: Speak to the minister.

Nina TAYLOR: Yes, speak to the minister. We are very happy to discuss this topic. We are proud of making this important investment and the transition – the transformation – of our energy sector. I just have to put it out there that I think it is about where the will is, and the will is definitely on this side of the house – and, I should say, a bit around there as well – to make that clean energy transition. And that is exactly what we are doing.

We have not mucked around either, let me tell you, because the SEC strategic plan was released on 26 October 2023. We are absolutely up there and at ’em with this. And what does it do? What are the core elements? It commits the SEC to invest to accelerate the energy transition – tick, that is extremely important, and I will come back to that point; become a one-stop shop to help Victorians electrify – therein lies a trust element, and I will come back to that point as well; and build the renewable energy workforce. So you can see here, looking at all the elements that are required – on the one hand having a strategic plan but also the mechanisms to actually implement that change – the grunt work is well underway, because you do need a workforce that is equipped and able to deliver on the transition all the while putting downward pressure on bills through more renewables and supporting home electrification.

I also heard the opposition saying ‘Labor doesn’t understand cost of living’. I think nothing could be further from the truth, and actually a big imperative for the clean energy transition and in fact state investment in the energy sector is all about driving down energy prices but also delivering on our emission reduction targets for the benefit of the whole community as well. And just to provide some more detail for the opposition, because even if they are not enthused yet, hopefully they will come on this journey, the SEC will manage the Victorian renewable energy target contracts, ensuring every public school, hospital, police station, train and tram is powered by 100 per cent renewable energy. This is the other thing where there is a little bit of a difference on either side of the house and around this corner as well – I am just pointing out the differences; I just have to put it out there. When I speak to people in my community, they are very excited about the transition to cleaner energy, because on the one hand, who likes pollution? Nobody likes pollution, and essentially, when we are talking about emissions, that is really what it is. And pollution is not good for anybody. Even the kids, when I go to schools, are very passionate on this topic, because they know that their future relies on this, not only when we are talking about clean energy jobs but also so that they have a planet that is truly livable.

We know that the State Electricity Commission will initially invest $1 billion towards delivering 4.5 gigawatts of new-build renewable energy projects by 2035, the equivalent replacement capacity of Loy Yang A. Therein you can see the precision within which we are implementing these very important changes. We are not winging it; this is very precise because we have directly measured what is required in terms of energy needs and output compared to the old coal-fired power industry. And I should say, the first pioneer investment will be announced by the end of this year.

I was talking before about the emissions reduction targets. The SEC will help deliver our nation-leading renewable energy and emissions targets of 95 per cent renewable energy by 2035 and net zero by 2045. At the same time you can see that this is the whole story and this really pertains to our Labor values, because it is not only about delivering for the environment, it is not only putting downward pressure on bills, it is also about generating jobs now and into the future – we are creating 59,000 jobs and increasing gross state product by about $9.5 billion. This is where I do not get the philosophical opposition to the changes that we are implementing in Victoria, because they just make economic sense. I would have thought the opposition would at least be interested in considering the economic advantages of this transition, but I guess when you are locked into a philosophical objection to anything that is not in the private market and you do not really get climate change, well, hence we have the opposition.

A member interjected.

Nina TAYLOR: Well, that is my interpretation, and am I wrong? No, sorry, but I do not think I am in this regard.

So we have committed to establish – and I was talking to the jobs now and into the future – an SEC centre of training excellence backed by a $424 million energy and training package to help workers upskill and to create 6000 positions for apprentices and trainees. This is what I am talking about when I am looking at the grunt work; it is about pulling all the pieces together that are required to implement this kind of massive transformation in the energy sector.

I want to come back to the pragmatic issue of moving away from our reliance on coal-fired power stations, and I do sense a continuous theme from the opposition about resistance to this idea. We know a lot of those power stations are getting pretty old, and we know the impact on surrounding communities. It is well documented in terms of the pollution that they have had to endure. On the one hand I would like to express gratitude for the workers who for decades have provided much-needed energy for our state. I do not want to disrespect the work that has been provided through that industry, but at the same time we are moving for good reason to the renewable energy sector. We know those old coal-fired power plants are not efficient, and actually the market is driving this. This is the other point. It is really a good economic decision to make this transition. It is not just a nice idea; it makes good sense when you are looking at your economy.

Coming back to the issue of climate change, I did speak before to the issue of pollution and the impact when we are looking at things like asthma and other aspects of our oxygen quality levels – flora and fauna. But even if you strip that away and even if the environment is not a passion for you – I hope it is, but even if it is not – when we look at our increasingly unstable weather patterns impacted by the stark increase in emissions, we know this impacts water supply, food and oxygen, which are the fundamental elements for human beings to be able to live well on this planet. So there are really good imperatives for making this change on so many fronts, even at a minimum, when we are talking about cost-of-living elements.

Another aspect that I do want to speak to is this issue of trust. I did say before that the SEC will be a one-stop shop to help Victorians get access to the information and support they need to electrify, because it is not necessarily innate in all of us to understand what that process requires and the costs et cetera involved and what kind of equipment. These are the kinds of very specific needs that our consumers in Victoria deserve to be supported with – that is, through that process – and that is exactly what we are setting up the SEC to do. It is hard to know where to go for trusted information and what services you can access. I am pointing out something fairly obvious, but I know myself at times when I have reflected in the past on different power companies, you do not know – ‘Am I getting a good deal?’ I mean, I know we have the Victorian default offer we have already implemented and, when we are talking about the cost of living, a number of legislative changes that have brought about more mechanisms to support consumers to have faith in the decisions they are making, or confidence, I should say, that they are getting the best possible deal within the market as it is. So the SEC will play an important role as a one-stop shop to help Victorians get off fossil fuel gas and electrify, and the SEC will start with pilot solutions next year before rolling it out to all Victorians.

Talking about the cost-of-living issue, let me just dive in there. Victorians can save around $1400 per year on their energy bills by switching to all electric and can double that by adding solar. Double – who knew that there were cost savings in renewables? Well, there is no secret; no-one is hiding this data. It is actually very accessible. The Victorian renewable energy contracts will be managed by the SEC from 2025, and the reason I am pointing out these elements is so that I can be emphatic about the transparency of this transition but also just provide the evidence – if more evidence was actually needed – that the grunt work is well underway to make this transition.

So Victorian renewable energy projects will ensure the Victorian government meets its commitment for all government electricity to be 100 per cent renewable. I think this is one of the inherent and significant elements of the SEC transition in terms of what it will deliver for Victorians, and I know at the election this was certainly received very well. In candid conversations in community, I did not hear anyone say ‘Oh, no, don’t transition to 100 per cent renewable energy through the SEC – don’t do that’. No. Let me tell you, nobody said that. They said, ‘That sounds like a really good idea.’ And the government will be the SEC’s first customer. The SEC will then look to retail, commercial and industrial customers.

Coming back with another further point – I have enough time to acquit it when it comes to cost-of-living elements – the SEC will push wholesale energy prices down by bringing on 4.5 gigawatts of power. I just want to reiterate that point because that is significant – replacing the equivalent of Loy Yang A through renewable energy projects.

In the few seconds that I have remaining I just want to bring it home with the gas transition. All-electric homes are cheaper to run, better for the environment and healthier for the families that live in them. So what does it mean? Converting an existing home with solar panels from gas to electricity can save around $1700 a year on energy bills in addition to around $1000 of savings per year from an existing solar system. For Victorians in a new all-electric home, going all-electric will save them around $1000 a year on their home energy bills. Those savings can increase to over $2200 when paired with rooftop solar. This is the jewel – all new all-electric homes do not need to cost any more to build than gas-connected homes. Hooray.

Question agreed to.