This is a joint submission from RE-Alliance, Community Power Agency and Friends of the Earth Melbourne to the Victorian Treasury on the 2026–27 Victorian State Budget.
As Victoria strives to reach its target of 95% renewable electricity generation by 2035, how communities are involved in renewable energy development is crucial. That's why we recommend that the Victorian Government invests $40 million over four years, starting in the 2026–27 Victorian State Budget, to establish a network of Local Energy Hubs.
Local Energy Hubs was initially developed as a national model – but this submission proposes a modified version of that model that applies it to the Victorian context. This $40 million over four years would fund the creation of independent, government-funded service centres that support the shift to renewable energy in seven locations across regional Victoria, coordinated by a state-wide office.
Outputs and functions of Local Energy Hubs would include:
- Providing trusted, place-based information and support to help communities understand, participate in and shape the shift to renewable energy.
- Acting as local engagement points for VicGrid, transmission companies, and developers to improve community engagement, thereby strengthening social licence and reducing community opposition.
- Supporting energy literacy, community energy projects, household electrification, and agricultural decarbonisation programs.
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Creating better community benefit-sharing initiatives, building local leadership, and improving public trust in energy infrastructure projects.
Local Energy Hubs would build long-term regional capacity, foster collaboration between community, government and industry, and help Victoria achieve its target of 95% renewable electricity generation by 2035.