A re-elected Victorian Labor government would build 4.5 gigawatts of publicly owned renewable energy generation, with a renewable energy target of 95 per cent by 2035.
The election promise also includes an emissions reduction target of 75 to 80 per cent by 2035, and net-zero emissions by 2045 — five years ahead of the government's previous commitments.
The deadline of the targets aligns with the new closure date of Victoria's biggest coal-fired power station, Loy Yang A.
Premier Daniel Andrews said as part of the promise, the government would spend at least $20 million dollars to revive the State Electricity Commission (SEC), which has been a shell of its former status since the end of the 20th century.
Throughout the 1990s, the SEC — which owned nearly all of the state's electricity infrastructure and generation — was parcelled off and sold to companies.
"We'll bring power back into the hands of Victorians by creating government-owned energy, keeping bills down and the lights on," the premier said.
The government said the newly revitalised company would re-invest profits into the distribution network over 10 years.
"Those power stations won't be for profit, they'll be for people," Mr Andrews said.
"They'll be, not owned by a private company, they'll be owned by everyone and everyone will benefit from that."
Certainty for jobs
Victorian Trades Hall Council secretary Luke Hilakari said he welcomed the proposal that would bring more certainty for workers in the energy industry by decreasing volatility.
"Morwell in the Latrobe Valley is an energy town, it's not just powering Victoria, it's powering the nation," he said.
"We cannot waste any more time because we don't know when a boardroom in France or China will make a decision to shut another energy plant."
Mr Hilakari said that since the SEC was privatised, power prices had increased threefold and it was important to bring those prices down as Australia became more electricity-dependent.
"Everything from cars to household appliances will be electrified, we're going to need more power," he said.
The Salvation Army commanding officer Brendan Nottle said bringing down energy prices was a major priority.
"Energy prices are not just an inconvenience, they are actually a matter of life and death for many vulnerable Victorians so anything that's going to get the prices down is something that we support," he said.
Transitioning power
Since 2013, the amount of energy generated from renewable sources has increased to 34 per cent, exceeding the first renewable energy target of 25 per cent by 2020.
Victoria University Victoria Energy Policy Centre director Bruce Mountain said it was important to learn from Europe's mistakes to ensure enough energy was made.
"We could probably expect a 50-50 mix of wind and solar, we have excellent wind onshore and offshore and excellent solar," he said.
"If we don't have enough coming from new wind and solar, coal will not be able to leave or we'll need to bring in gas, that'll be a policy failure."
To meet energy requirements, infrastructure with the capacity to produce 1,500 MW would need to be built each year between 2025 and 2040.
"We have enough time to avoid [Europe's] mistake and that means executing well," Professor Mountain said.
"It's entirely doable, but it's going to require direction from the government."
A 'retrograde' step
But not everyone is in support of the move, with the Australian Energy Council concerned it will damage market and investor confidence.
Australian Energy Council chief executive Sarah McNamara said more stress would be placed on Victorian taxpayers while destabilising future investment plans.
"Publicly-listed energy companies have already written off $11.5 billion of shareholder value due to market uncertainty over the past five years," she said.
"Government shouldn't need to make direct energy investments where the private sector has demonstrated it is ready and willing to do so.
"The money being committed by the Victorian government is funding that could be more effectively deployed elsewhere."
'Cynicism' and scars
The Latrobe Valley has struggled with high unemployment and social issues since the privatisation of the SEC, which lead to the loss of thousands of jobs during the mid-1990s.
Former SEC manager John Guy said there was "no doubt" privatisation of the body started the region's woes.
"The SEC employed a lot of people across the Latrobe Valley and we didn't get other industries in to fill the gap," he said.
Mr Guy said the announcement would be received with some trepidation by Latrobe Valley residents.
"Is it an announcement to achieve some votes, or is it something concrete that's going to happen to the benefit of this area?" Mr Guy asked.
"There will be a certain amount of cynicism about the announcement."
