Energy Policy

All of our state policy principles and aims should be read alongside our relevant federal policy principles and aims, as well as our state campaigns and federal campaigns.

Principles

  1. State and local energy strategies must be based upon the principles of ecological sustainability and social equity.
  2. The climate crisis requires a sustainable energy industry that generates net zero greenhouse gas emissions. The shift to renewable energy is the only viable route.
  3. Incentives for sustainable transformation of the energy sector need to be accompanied by disincentives for the consumption of fossil fuel.
  4. All buildings, vehicles, machinery and appliances need to be energy-efficient and powered by reliable renewable energy.
  5. All households need affordable energy to meet essential needs.
  6. Environmental effects and pollution costs must be factored into the price of energy, especially that derived from fossil fuels.
  7. Governments have a central and vital role to play in creating a net zero emission energy sector and industries, including drawdown.
  8. Energy is an essential utility, therefore regulation of all energy infrastructure must be transparent and government controlled.
  9. New utility-scale energy storage, transmission and distribution infrastructure should be publicly or community owned (while allowing for additional private investment) in order to:
  • support and accelerate the transition to 100% renewable energy
  • ensure control of pricing and stability, and 
  • ensure public control of and returns from energy exported overseas.

Aims

Targets

  1. Binding Victorian greenhouse gas emission targets from the stationary energy sector in line with a reduction to zero or net negative greenhouse gas emissions as quickly as possible, and no later than 2030.
  2. Phasing out the Victorian use of fossil fuels using a combination of energy efficiency, energy storage, energy conservation and renewable energy.

Supply

  1. Rapid transition to 100% renewable energy, while ensuring a reliable and stable electricity grid through sound engineering and planning.
  2. Prioritise the rapid rollout of new publicly and community-owned solar, wind and other renewable generation projects across Victoria to ensure the state achieves and maintains 100% renewable electricity, with capacity to meet rising demand from electrification of transport, heating and industry.
  3. Boosting small scale renewable energy generation, including the introduction of a fair feed-in tariff and removing barriers to grid connection.
  4. Installing new or upgraded publicly owned transmission infrastructure to ensure full and proper network connections for all approved and installed renewable energy facilities, avoiding wasted generation.
  5. Government buildout of widespread non-proprietary electric vehicle recharging infrastructure.
  6. Supporting and assisting the development of markets for alternative sustainable fuels.
  7. Significant investment in new, publicly owned pumped hydro energy storage, big batteries and other storage technologies in suitable locations to ensure grid stability.
  8. Public investment in, and ownership of, a comprehensive system of storage and transmission networks – including community-owned microgrids – to achieve energy security and reliability from 100% renewable energy.
  9. Cease the burning of wood chips from native forests and from waste for power generation.
  10. Developing and implementing complementary policy measures in collaboration with other governments where possible.

Demand

  1. An emphasis in Victoria on demand reduction through energy conservation and efficiency measures across all sectors.
  2. Removing perverse incentives that encourage use of fossil fuels and growth in energy consumption achieved through reform of the national energy market and by other measures.
  3. Assisting industrial and commercial energy consumers to reduce consumption, and enforcing existing energy efficiency standards.
  4. Assistance for consumers to conserve energy and to access affordable and reliable renewable energy.
  5. Establish government-backed loan schemes which enable all households to access energy efficiency upgrades, solar panels and batteries, with repayment deferred until the home is sold.
  6. Assistance for electricity users to reduce summer peak electricity demand and support for vulnerable consumers affected by outages.
  7. Assisting industry to convert from all fossil fuels and their derivatives to renewable energy by, for example, retrofitting or replacing equipment.
  8. Implementing measures to ensure that development across Victoria is energy, water and waste efficient.
  9. Improving and implementing mandatory energy performance standards for buildings.
  10. Mandating compliance with emissions standards and the disclosure of energy performance ratings for buildings prior to construction, refurbishment, sale or lease.
  11. Higher energy efficiency standards for all buildings, with a particular prioritisation of public, not-for-profit and private rental housing, as well as government-owned buildings.
  12. Developing, funding and publicising an energy retrofit strategy for existing buildings.
  13. Supporting the production of biofuels by farmers for use as tractor fuels.
  14. Promoting the sustainable use of electric vehicles.

Transition and adaptation

  1. Providing structural adjustment assistance for rural and regional consumers.
  2. Ensuring the provision of effective fuel poverty alleviation measures.
  3. Programs to assist Victorian communities to transition to more diverse and sustainable sources of economic prosperity, particularly if they are affected by:

  • decline in fossil fuel or other carbon-intensive sectors
  • loss of major industries or employers
  • broader structural changes in the economy

Ending fossil fuel subsidies

  1. No public funding for the existing fossil fuel industry.
  2. Ending support for the development of gas-from-coal and oil-from-coal, and associated carbon capture and storage technologies.

Further reading 

Return to all state policies

Energy Policy as adopted by members on 4 October 2025