Umair Gaines
The number of electricity companies in Victoria, Australia, has changed over time. Initially, electricity was generated and distributed by a combination of private and municipal companies, including the Melbourne Electric Supply Company, which was the main privately-owned enterprise. The State Electricity Commission of Victoria (SECV) was formed in 1921 to consolidate these smaller operations. In the 1990s, the SECV's businesses were privatised and broken up, resulting in the creation of multiple distribution companies. Today, there are five electricity distribution businesses in Victoria, each serving a specific geographic region. The state has also seen a growing focus on renewable energy sources, with a target of 95% renewable electricity generation set for 2035. Additionally, Victoria, Texas, in the United States, also has a range of electricity providers, such as Gexa Energy, offering various plans to cater to the diverse needs of its residents.
| Characteristics | Values |
|---|---|
| Number of electricity distribution companies | 5 |
| Number of gas distributors | 3 |
| First electricity supplier | Melbourne Electric Supply Company, established in 1899 |
| First electricity supplies to Melbourne | Generated and distributed by private and municipal generator and distribution companies |
| Main municipal-owned power station | Operated by Melbourne City Council |
| Main private company | Melbourne Electric Supply Company |
| State Electricity Commission of Victoria (SECV) | Formed in 1921 |
| Solar farms | 15 large-scale farms operating as of June 2022 |
| Wind farms | 8 operating as of October 2011 |
| Number of electricity providers in Victoria, TX | Many |
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What You'll Learn
History of electricity in Victoria
The history of electricity in Victoria, Australia, dates back to the late 19th century when the state was at the forefront of the nation's electrification. The Victorian Electric Light Company, formed in 1880, was responsible for lighting Melbourne's Eastern Market and the Athenaeum Hall. The first electric tram in Melbourne was built in 1889, and by the 1890s, electricity began to be used for street lighting in the city.
In the early 1900s, Melbourne City Council established 20 dynamos and four boilers at Spencer Street, and in 1894, the streets in the city centre were illuminated by electricity. The Melbourne Electric Supply Company, established in 1899, operated the Richmond Power Station (opened in 1891) and the Geelong Power Station. The State Electricity Commission of Victoria (SECV) was formed in 1921 to merge various small electricity operations. The SECV investigated hydroelectric power generation and worked on brown coal-fired power stations at Yallourn.
In the 1920s, the SECV took over several small municipal electricity distributors, including the Melbourne Electric Supply Company and its street tramway operations. The development of central power authorities and high-voltage transmission lines in the 1920s marked a significant step forward, with Victoria transmitting electricity from the Yallourn Power Station in the Latrobe Valley to Melbourne in 1924.
In the following decades, the use of brown coal became the primary energy source for electricity generation in Victoria, accounting for about 85% of electricity generation in 2008. However, in more recent years, there has been a shift towards renewable energy sources. In 2021, 33% of electricity generation was from renewable sources, and the state government has set a target to increase this to 95% by 2035. Victoria has historically been a net exporter of electricity, and its electricity grid is interconnected with neighbouring states.
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Current electricity distributors
The number and specifics of electricity distributors in Victoria have changed over time. The first electricity supplies to Melbourne were generated and distributed by a combination of private companies and municipal generator and distribution companies. The main municipal-owned power station in Victoria was operated by the Melbourne City Council, which generated electricity from its Spencer Street Power Station for residents. It also supplied electricity to other municipal distributors. The main privately-owned company was the Melbourne Electric Supply Company, which was established in 1899 and operated the Richmond and Geelong power stations.
The State Electricity Commission of Victoria (SECV) was formed in 1921 to merge these small operations. In the 1920s, the SECV took over a number of small municipal electricity distributors and, in the 1930s, acquired the Melbourne Electric Supply Company. The SECV also built and managed the company town of Yallourn for workers of the accompanying power station, produced briquettes at Yallourn and Morwell from brown coal, and operated a dedicated fire and rescue service.
In the early 1990s, the SECV's businesses and assets were privatised and broken up, with its regulatory functions taken over by government agencies. During Victoria's 2022 state election campaign, the Victorian Labor Party pledged to revive the SECV as a participant in the deregulated National Electricity Market. Following Labor's victory, an initial investment of $1 billion was allocated to the new state-owned company SEC Victoria in the 2023-24 state budget.
As of 2023, there are five electricity distribution businesses in Victoria, each handling a separate geographic region.
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Renewable energy sources
Victoria has 5 electricity distribution companies, each responsible for a different geographic region of the state. Renewable energy sources are an important part of Victoria's energy mix, with the state working towards a future powered by a range of renewable sources. The Victorian Renewable Energy Action Plan outlines the steps being taken to encourage investment in the renewable energy sector, with the state offering support and incentives to achieve this.
The state has set ambitious targets for renewable energy generation, aiming for 65% by 2030 and 95% by 2035. To achieve these goals, Victoria is investing in a variety of renewable energy sources, including solar, wind, and hydroelectric power. As of June 2022, there are 15 large-scale solar farms operating in Victoria, with a nameplate capacity of 695.2 MW, and five more under construction with a capacity of 710 MW. The state also has several wind farms, with one of the largest now online, contributing to the state's renewable energy generation.
Victoria has a history of hydroelectric power generation investigations dating back to the 1920s when the State Electricity Commission of Victoria (SECV) explored this energy source in parallel with brown coal-fired power stations. The Rubicon Hydroelectric Scheme, approved in 1922, supplied on average 16.9% of electricity generated by the SECV during its first ten years of operation.
The state is also supporting waste-to-energy development, with the Renewable Energy (Jobs and Investment) Act 2017 targeting 25% renewable energy generation by 2020 and 40% by 2025. Victoria is committed to a renewable, affordable, and reliable energy system, offering incentives such as discounts on energy-efficient products to help reduce energy bills for its residents.
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Solar farms
Victoria has 5 electricity distribution companies, each handling a different geographic region of the state. Renewable energy, meanwhile, is supplying a rapidly increasing fraction of Victoria's electricity. In 2021, 33% of electricity generation was from renewable sources, and the state government has set a target of increasing that to 95% by 2035.
Solar energy facilities are a key part of this transition to renewable energy. As of June 2022, there were 15 large-scale solar farms operating in Victoria, with a nameplate capacity of 695.2 MW, and 5 more under construction, with a capacity of 710 MW. Many more are planned.
The Victorian government is investing heavily in solar farms. In November 2024, it was announced that a $370 million state-owned solar farm and battery would be built in Horsham in Victoria's west. Expected to be completed in 2027, the project, dubbed the SEC Renewable Energy Park, will include a 119-megawatt (MW) solar facility and a 100MW two-hour battery, which will be able to power more than 51,000 homes. The government also plans to reinvest all profits from the project into other renewable energy initiatives.
Another solar farm, the 250-megawatt Muskerry Solar Power Station, is located 30km northeast of Bendigo and will generate enough energy to power 118,000 homes. The project includes the construction of around half a million solar panels and a 200MW battery storage system connected to an existing transmission infrastructure.
The development of solar energy facilities in Victoria is supported by the Solar Energy Facilities Design and Development Guideline, which provides guidance on siting, design, and assessment. The Victorian government is committed to reducing emissions, creating jobs, and putting downward pressure on energy prices through the development of well-sited and well-designed solar energy generation facilities.
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Wind farms
Victoria has 5 electricity distribution companies, each responsible for a different geographic region of the state. The state has embraced renewable energy sources, with 33% of its electricity generated from renewable sources in 2021. The state government has set a target to increase this to 95% by 2035.
The Mt. Gellibrand Wind Farm, completed in 2018, is a notable example of a more recent wind farm in Victoria. This wind farm generates 132 MW of clean energy, sufficient to power 90,000 homes. ACCIONA Energía, the company behind the Mt. Gellibrand Wind Farm, is a global leader in the wind power industry, with over 25 years of experience. They have installed more than 8,700 MW of wind power capacity, generating approximately 80% of their renewable production.
As Victoria's wind farms approach the end of their 20-to-30-year lifespan, the question of decommissioning and recycling has gained prominence. According to the Clean Energy Council, wind farm operators are unlikely to abandon old infrastructure due to the valuable materials within the turbine towers, such as steel, copper, and other precious metals in the generators. The recycling of old wind turbines can contribute to the scrap metal industry, with Melbourne-based company Norstar capable of recycling wind turbines.
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Frequently asked questions
There are five electricity distribution businesses in Victoria, each handling a different geographic region.
Some electricity companies in Victoria include Gexa Energy, Energy Safe Victoria, and the Melbourne Electric Supply Company.
When choosing an electricity company in Victoria, it is important to consider your unique electricity needs and budget. Different companies offer different plans, so it is essential to find one that fits your requirements and financial situation.
