Victoria’s new decarbonisation plan targets 8.5 GW energy storage by 2035
The government of Victoria, Australia, has unveiled a new decarbonisation plan aiming to boost energy storage capacity to 8.5 GW by 2035, up from the current 537 MW. This initiative is part of the state’s “Cheaper, Cleaner, Renewable: Our Plan for Victoria’s Electricity Future” roadmap, which seeks to increase renewable energy to 65% by 2030 and 95% by 2035. Currently, renewables account for around 38% of Victoria’s power.
The plan predicts a 50% rise in electricity use over the next decade due to population growth and increased electrification. To meet this demand, Victoria aims to introduce approximately 11.4 GW of new grid-scale renewables, including 4 GW of offshore wind and 7.6 GW of additional rooftop solar.
Victoria’s roadmap aligns with the Australian Energy Market Operator’s 2024 Integrated System Plan, which forecasts the state’s installed capacity to more than double by 2036 to meet growing demand and replace 4.8 GW of retiring coal-fired power. The state has set battery storage targets of 2.6 GW by 2030, moving towards 6.3 GW by 2035.
By 2035, Victoria anticipates having 4.3 GW of distributed storage paired with rooftop solar, which includes virtual power plants, vehicle-to-grid systems, and neighbourhood batteries. The overall storage capacity could reach 8.5 GW, comprising 4.1 GW of utility storage, 2.9 GW of coordinated storage, and 1.5 GW of passive distributed storage.
An estimated AU$35 billion (USD 23.6 billion) will be required to achieve these goals by 2035.