An ambitious renewable energy target of 40 per cent by 2025 has been given a green light by Victoria's parliament.
An ambitious renewable energy target of 40 per cent by 2025 has been given the green light by Victoria's parliament.
The legislation, which also locks in a 25 per cent target by 2020, passed the state's upper house on Friday afternoon.
The government says its modelling shows the target will cut the average Victorian household power bill by $30 a year, while saving medium businesses $2500 and large companies $140,000.
Environment Minister Lily D'Ambrosio says it will also reduce electricity sector emissions by 16 per cent by 2034-35.
"These legislated targets remain the one constant for renewable energy investor confidence in Australia and the message is clear - Victoria is open for business," she said in a statement.
The bill, introduced by the Andrews Government because it was sick of waiting for a national renewables target, was opposed by Liberal and National MPs.
The Clean Energy Council said the target paved the way for major investment opportunities into the next decade, while Environment Victoria said it showed the state was willing to stand firm on climate leadership.
It follows the federal coalition government's move this week to ditch a clean energy target proposed by Chief Scientist Alan Finkel.
Prime Minister Malcolm Turnbull instead announced separate reliability and emissions guarantees, which his government said would bring down power prices and meet Australia's Paris reduction target.