Health services switch to SEC’s 100 per cent renewable electricity

In October 2023, Premier Jacinta Allan announced the relaunch of the State Electricity Commission (SEC), with the Victorian Government – including public health services – designated as the new SEC’s foundation customer.

Public health services consuming more than 40MWh/a of electricity were required to transition to the SEC for their electricity contracts by 1 July 2025. This supports the government mandate of having 100 per cent renewable electricity across its operations and facilities by the start of this financial year.

Through the SEC, regional and metropolitan health services across the state, along with schools, public transport networks and other Victorian Government operations, are being powered by 100% renewable electricity.

As for all retailers operating in the National Electricity Market, electricity consumed by the SEC’s customers is supplied from both renewable and non-renewable sources. However, the SEC is matching its customers’ electricity consumption by surrendering large-scale generation certificates (LGCs) generated by renewable energy sources to ensure each megawatt hour of electricity consumed by customers is matched to a renewable source.

Electricity demand will be met with the SEC’s portfolio of renewable electricity generation and storage assets, including Victorian Renewable Energy Target auction projects including wind and solar farms.

In preparation for the transition to the SEC, HSV advocated for participating health services by working with the Victorian Government to secure state funding for voluntary LGCs under the SEC Retail Electricity Contract. This funding supports the cost of health services’ renewable electricity commitment and means participating health services will not be billed for the voluntary LGCs purchased under the SEC contract.

“This is an exciting time as we move the health sector towards 100 per cent renewable energy,” says HSV Chief Procurement Officer Sarah Bryant.

“We were pleased to be able to support our mandated health services to meet their renewable energy targets without being financially disadvantaged – an important consideration in this current economic environment where hospital budgets are under pressure.”

HSV is now working with health services on options for feed-in tariffs and demand reduction, as well as supporting smaller health services that were ineligible to access the LGC-funded SEC contract.