Patrick Durkin
Patrick DurkinBOSS Deputy editor
Jun 23, 2023 – 5.00am

Former chief scientist Alan Finkel has quit his role advising Victoria’s State Electricity Commission, as the organisation’s chief executive warned energy prices may rise, despite Victorian Premier Daniel Andrews’ election promise the SEC would bring down prices.

The Australian Financial Review can reveal Dr Finkel has quit his role advising the SEC, amid criticism by energy experts that plans for the re-established body lack detail and do not have sufficient capital.

The inaugural CEO of the SEC also told the Australian Energy Week conference it was still searching for its first project, amid growing concerns investments have dried up and the country is unlikely to reach its emission reduction targets.

Chris Miller, appointed interim CEO of the SEC, acknowledged on Thursday that the energy transition could cause a rise in energy prices, despite Mr Andrews’ election claims.

“There’s a whole lot of different views on what the price forecasts might be, but we’re just focusing on what we can control, which is that first investment process and bringing on capacity as soon as we can,” he said.

The Grattan Institute’s energy director, Tony Wood, agreed.

“No-one who has ever understood any of the numbers would ever tell you the delivered price of electricity is going to go down unless you were going into an election and wanted to promise they would,” he said.

Bringing back the SEC was a key election pledge by Mr Andrews in the lead-up to the November state election.

Victorian Premier Daniel Andrews says the promise of reviving the SEC was key to Labor’s election win in November. Matt Davidson

Dr Finkel was appointed alongside former Telstra boss Andy Penn and former regulator Audrey Zibelman with much fanfare, giving the election proposal much-needed credibility.

The Andrews government committed an initial $1 billion in the lead-up to the May budget to help deliver 4.5 gigawatts of power through renewable energy projects, with the Victorian government to take a majority stake in the projects.

Dr Finkel, who has led the National Electricity Market Review, the Hydrogen Strategy and Low Emissions Technology Road map, confirmed his departure to the Financial Review but only said he was leaving for “personal reasons”.

Dr Finkel expressed concerns in February that “you don’t want to crowd out private-sector funding”.


“There are big challenges ahead but exciting challenges. I’m not suggesting it’s not possible to do. It’s just that it is big and complex,” he said.

Mr Wood is among experts who have warned the SEC appears hopelessly short of funds, given the Australian Energy Market Operator estimates the transition from fossil fuels will cost about $320 billion nationally.

“There’s so many unknowns and questions, and none of them have been answered yet,” he said.

Former Victorian premier Denis Napthine is among those who say the SEC is “nothing but a stunt”. Liberal energy spokesman David Hodgett said “the Andrews government’s SEC is falling flat and failing to deliver the cheaper energy prices Victorians were promised”.

A Victorian government spokesperson said: “Professor Finkel has made an invaluable contribution to the re-establishment of the SEC, and we thank him for sharing his wealth of experience, which has contributed greatly to bringing back government-owned energy in Victoria.”
One shot

But almost nine months after the plan was announced, Mr Miller said it was yet to find its first project, as major renewable investment dries up.

“We’ve got one shot of getting this right,” Mr Miller told the Australian Energy Week conference in Melbourne on Thursday.

“We know at a national level the Commonwealth government is aiming for 82 per cent renewable penetration by 2030. In Victoria, we have a target of 95 per cent renewables by 2035.

“Current projections are that Victoria needs about 25 gigawatts of new capacity to reach the 2035 target.”

But Mr Miller pointed to warnings by the CEO of the Australian Energy Market Operator, Daniel Westerman, and data from the Clean Energy Council that shows “a profound and recent slowdown in new financial commitments for large-scale user generation projects”.

“In fact, in the first quarter of this year there were no new financial commitments across the nation despite a strong pipeline of projects.”

Mr Miller said registration of interest in investing with the SEC closed in May “and we received a really pleasing response” but added “we know that our seed capital of $1 billion doesn’t buy 4.5 gigawatts acting alone”.

Mr Westerman warned the conference on Tuesday that investment in new, clean electricity supply was not happening fast enough to replace closing coal power stations.

No new renewable energy generation projects reached a final investment decision in the March quarter, despite more than 200 gigawatts of proposed future generation projects.

Coal plant closures are set to accelerate at the same time, building on AGL Energy’s shutdown of the Liddell power station in NSW in April.

Sir lastnail wrote on Jun 23^rd, 2023 at 6:35pm:



We export energy - gas and coal yet
somehow we have a shortage here.
Blame lousy Govts.