The Victorian Chamber of Commerce and Industry (VCCI) has released a new policy paper urging both the Victorian and federal governments to adopt an alternative energy pathway to address the state’s energy crisis, which has now become a national issue.
In the policy paper titled Securing Our Energy Future, the VCCI emphasises the urgent need to prioritise new gas supply to avoid imminent shortages that could impact the entire east coast of Australia.
The chamber proposes a two-phase approach to energy transition:
- Secure gas and electricity supply while delivering the lowest possible prices.
- Transition society to a net-zero future.
Paul Guerra, Chief Executive of the VCCI, stated: “Our current trajectory is putting Victoria’s prosperity at risk, as energy security and price cannot be guaranteed.
“Gas will be essential for [the] transition to net zero. Equally, we need all our energy options on the table to overcome our current energy crisis.”
The VCCI warns that high energy prices are already impacting businesses, and if supply is threatened, more companies may decide to relocate.
To address this, the chamber suggests several measures to shore up the gas supply, including:
- Unlocking new reserves
- Planning for LNG supplies
- Increasing pipeline capacity from Queensland
The policy paper also highlights the importance of streamlining regulatory approvals, upholding technology neutrality, and incentivising the supply and demand of novel gases and liquid fuels as Victoria moves towards renewables.
Guerra emphasised the potential economic benefits of developing new clean energy industries, stating: “New clean energy industries will create enormous economic and environmental benefits, but the transition must ensure an affordable and available supply to power Victoria into this next stage of prosperity.”
The VCCI warns that inaction could have severe consequences for Victoria’s business and industry.
They cite the 1998 Longford Disaster, which cost businesses $1.3 billion, equivalent to $2.6 billion per fortnight in today’s dollars without accounting for population growth.
The chamber calls for collaboration between energy industry stakeholders and the Victorian government to ensure gas remains a part of the state’s energy system.
They also point to the federal government’s Future Gas Strategy as a potential mechanism for addressing the urgent situation faced by Victorian businesses.
As the energy crisis continues to impact Victorian businesses, the VCCI’s policy paper serves as a call to action for government and industry leaders to work together in securing a stable and affordable energy future for the state.
