Proposed 2 km setback puts 26,000 Victorian jobs and future electricity supply at risk

The 2 km set back would apply to all wind, solar and battery projects, halting new generation at the worst possible time, as Victoria races to replace retiring coal and meet rising electricity demand.

Clean Energy Council Chief Executive Officer, Jackie Trad said that the policy risks undermining Victoria's future energy security and regional economic growth.

"Victoria needs new electricity generation to replace rapidly deteriorating coal-fired power stations and maintain reliable supply for homes, businesses and industry,” she said.

“A 2km setback would gut Victoria's development pipeline and with it, any credible path to meeting future energy demand”

The Clean Energy Council's analysis found the proposed setback would sterilise almost all land closest to existing and planned transmission infrastructure, including large parts of Victoria's Renewable Energy Zones.

Victoria had previously operated a 2 km setback regime for wind projects, with development completely halting before the policy was later wound back. Comparable restrictions in Europe, including Bavaria in Germany and Poland, were eventually relaxed after constraining investment in new energy supply.

"Regional communities stand to benefit from billions of dollars in investment, thousands of jobs, new income streams for farming families and long-term revenue for local councils,” Ms Trad said.

"The question Victoria needs to answer is where the next generation of electricity supply will come from, and will it be ready for coal’s scheduled retirement.”

Projected losses from the Opposition proposal: 

• 26,000 full-time equivalent job-years by 2035, with around three-quarters located in regional Victoria
• $3.9 billion in wages flowing into Victorian communities
• $3.2 billion in local procurement opportunities for Victorian businesses
• $213 million in landholder and community benefit payments
• $93 million in Payments in Lieu of Rates (PiLoR) for regional councils