A Gippsland wind farm, long delayed by logistical challenges, will be fully acquired by the State Electricity Commission (SEC) for up to $700 million. This strategic move aims to accelerate the project and contribute significantly to Victoria’s renewable energy goals.
The SEC’s purchase of the Delburn Wind Farm, initially approved in 2022, has been hindered by its location within a pine plantation. This acquisition will enable construction to commence in early 2026, with completion anticipated by 2028. Once operational, the wind farm will feature 33 turbines, generating 205 megawatts of electricity, sufficient to power over 130,000 homes.
Government’s Renewable Energy Commitment
Energy Minister Lily D’Ambrosio is expected to announce the deal, which involves the SEC spending between $650 million and $700 million to acquire the wind farm from private investors. The project, situated in the Strzelecki Ranges, marks the first wind farm in Victoria to secure full financing in the past year.
D’Ambrosio emphasized the SEC’s role in advancing renewable energy investments while also acting as the electricity retailer for all state government operations.
“The SEC is powering Victorian government operations with 100 percent renewable electricity – with all profits being invested back into projects that will deliver more renewable energy and lower power bills for Victorians,” she stated.
Challenges and Community Concerns
Initially, the wind farm’s approval by the Victorian planning minister in 2022 met with local opposition due to concerns over bushfire risks, attributed to its plantation location. Although the decision faced legal challenges from community groups, it was upheld in court in 2023. Developers have since proposed utilizing artificial intelligence to mitigate bushfire risks and address community apprehensions.
Despite these measures, the project experienced further delays due to amendments in planning permits, causing construction timelines to be pushed back through 2024 and 2025. The Delburn Wind Farm will be the first SEC-owned project in Gippsland, a region historically significant for its coal-fired power plants.
Economic and Regional Impact
Eastern Victoria MP Tom McIntosh highlighted the project’s significance, stating,
“This project will tap into the Latrobe Valley’s proud history as Victoria’s energy heartland and ensures the region continues to play a leading role in our renewable energy future.”
The project is expected to create 300 local jobs and allocate $22 million towards community benefit funds and programs for nearby residents. This announcement follows the SEC’s recent completion of its first investment, the Melbourne Renewable Energy Hub, a large-scale battery project in Melbourne’s west.
Strategic Investments and Future Outlook
Since the SEC’s revival, the Victorian government has committed over $1 billion to renewable and storage projects, surpassing this target with a total of at least $1.27 billion. This includes $245 million for the battery hub, at least $650 million for the wind farm, and $370 million for a solar and battery park under construction in Horsham.
The decision to invest in the Delburn Wind Farm, despite its challenges, aligns with the SEC’s vision as outlined by CEO Chris Miller in 2024. At that time, Miller emphasized the commission’s focus on projects where private markets remain hesitant, aiming to bridge a five-gigawatt gap identified by the Australian Energy Market Operator.
Miller commented,
“SEC has now committed more than a gigawatt of renewable energy capacity – a quarter of our 2035 target of 4.5 gigawatts.”
This move underscores the SEC’s dedication to fostering a sustainable energy future for Victoria.
