The State Electricity Commission (SEC) will begin supplying renewable electricity to all Victorian Government operations from 1 July 2025, under a series of newly signed retail contracts.
The move marks the first time the SEC will directly deliver power in over three decades, following its sale and the subsequent introduction of private power retailers in the 1990s. The re-established SEC is now entering the electricity retail market as a government-owned provider focused on renewable energy generation and distribution.
The State Electricity Commission of Victoria was established in 1918 and operated as a vertically integrated, government-owned utility responsible for electricity generation, transmission, and distribution. In the 1990s, the SEC was disaggregated and privatised as part of broader market reforms aimed at increasing competition. The current revival of the SEC reflects a shift in energy policy towards publicly-owned renewable infrastructure.
The new contracts will see the SEC supply clean energy to a wide range of public assets across Victoria, including schools, hospitals, water services, train stations, and cultural institutions. In the Macedon region, this includes eleven public schools, three health services, and thirty-four water services.
The signing of the retail contracts means the SEC will enter the market servicing five percent of Victoria’s electricity consumption – making it the fifth largest commercial and industrial electricity retailer in the state. And later this year, the SEC will expand its retail offering to sell renewable electricity to commercial and industrial businesses.
Iconic state sites such as Melbourne and Olympic Parks, Melbourne Zoo, the National Gallery of Victoria, Melbourne Museum, Parliament House, and regional attractions including Phillip Island’s Penguin Parade and the alpine resorts of Mount Buller and Mount Hotham will also be powered by renewable electricity under the agreements.
Victoria’s public transport network will be a major beneficiary, with more than 350 million train and tram trips each year powered by clean energy from the SEC. The Metro Tunnel, due to open later this year, will also run on SEC-supplied electricity.
The SEC will provide 100% renewable electricity sourced from its own generation projects and through agreements under the Victorian Renewable Energy Auction Scheme. These include the Berrybank and Dundonnell Wind Farms, Cohuna and Winton Solar Farms, and the Bulgana Green Power Hub.
With the contracts in place, the SEC will supply approximately five percent of the state’s total electricity consumption, making it the fifth-largest commercial and industrial electricity retailer in Victoria.
Later this year, the SEC plans to expand its retail services to commercial and industrial customers, enabling more businesses to access renewable energy options. Profits generated will be reinvested into additional SEC renewable energy projects aimed at increasing grid capacity and reducing energy prices.
Current developments include the construction of 819 megawatts of solar and battery storage at the SEC Renewable Energy Park in Horsham and the Melbourne Renewable Energy Hub near Melton. These projects are part of the state’s broader strategy to reduce emissions and transition to net zero by 2045.
This article is based on a media release from the office of State Member for Macedon, Mary-Anne Thomas.
