In short:
Victoria has exceeded its 2025 renewable energy target, with renewables supplying 44.6 per cent of electricity as major projects continue to roll out across the state. While the milestone marks a clear shift in energy generation, debate continues over costs, infrastructure and how fast the transition should go.
Green Energy Target Surpassed
Victoria has exceeded its legislated renewable energy target for 2025, with renewables accounting for 44.6 per cent of the state’s electricity generation last year.
The figure is above the 40 per cent target set under state law and continues a pattern of meeting renewable benchmarks ahead of schedule.
While the result marks a clear shift in how electricity is generated in Victoria, it also reflects the scale and speed of change now underway across the state’s energy system.
Nearly 100 large-scale renewable energy projects are currently operating in Victoria, including 54 solar farms.
When combined with rooftop systems, solar supplied about 16 per cent of the state’s electricity in 2025.
Wind power provided the largest share of renewable generation, accounting for around 24 per cent of total electricity.
Ten additional onshore wind farms have been approved, alongside ongoing planning for offshore wind projects — developments that have attracted both support and concern in different parts of the community.
The government points to wholesale electricity prices as an indicator of success. Over the past year, Victoria’s average wholesale price was $78 per megawatt hour, lower than other mainland states.
However, wholesale prices are only one part of household power bills, and long-term impacts on reliability, infrastructure costs and transmission upgrades remain a focus of debate.
Lily D’Ambrosio confirmed the target had been exceeded when releasing the figures, alongside updates on the Development Facilitation Program, which fast-tracks priority renewable projects.
The program has approved 25 projects representing close to $9 billion in investment.
Once completed, those projects are expected to generate enough electricity to power more than 700,000 households annually, with battery storage intended to help meet evening peak demand for up to 2 million homes.
How these systems perform over time — and how costs are shared — will be closely watched as Victoria moves toward its next energy targets.
