The Victorian government plans to construct a new solar power station in Victoria by 2015. The proposed plant is expected to cost around $500 million. The government will contribute $100 million for the plant and is seeking matching funding from the Commonwealth, with the rest to come from private capital. Premier John Brumby said that the new plant would produce about 330 gigawatts of power each year and will help meet Victoria's energy needs.

To put that in perspective that would be enough power again to power a city of 50,000 homes, so something like the city of Bendigo, the city of Ballarat, Brumby said.

We’re talking about very large scale reliable solar generation.

This bid that we’re putting in the market is the most cost-efficient, effective way to produce solar energy, and really it gives us that opportunity, Brumby said.

It represent great value for money, and it’s the way to go for our state in the future.

The plant’s location is yet to be determined.


Victorian Opposition Leader Ted Baillieu said that he does not believe the planned solar power station for Victoria will materialise.

This has all the signs of being yet another Labor Government stunt, Baillieu said.

It has no timetable, no site, no funding, and you just have to wonder what the purpose of this announcement was.

Solar scheme

The Victorian government will launch legislation into State Parliament, to reward homeowners who produce more solar energy than they use.

Under the system, the private producers will be paid 60 cents for every kilowatt of energy they feed back into the main grid.

Environment Minister Gavin Jennings said that the scheme will make solar power more affordable.

The scheme will work in a way where it’s upfront, Gavin said.

The advantages come early and the industry has said to us that if they get that type of assistance, that should assist them of bringing down the costs of installation, because it’s the installation cost that is the biggest deterrent.