Infrastructure Victoria has called for the state government to help fund power supply upgrades for agriculture and industry, in regions such as the south-west.
Infrastructure Victoria's 30-year Priorities Strategy found an $8.7 million upgrade of the single wire earth return (SWER) backbone to three-phase power in the Great South Coast could deliver benefits of over $2 million each year.
"In some areas, older electricity infrastructure is no longer fit for purpose, limiting potential business investment and expansion opportunities," Infrastructure Victoria found.
The call has been welcomed by the Great South Coast Food and Fibre Network.
The upgrade would improve supply for 1130 customers and increase the network's capacity to support growth.
"We agree with this and have already submitted a proposal which is at the early stages of consideration by the Victorian government," Great South Coast Food and Fibre Network executive officer Natalie Collard said.
"It is entirely appropriate that the Victorian Government invest in these upgrades.
"Modern energy infrastructure will give our food and fibre businesses the edge to compete and embed resilience into our communities."
The Infrastructure Victoria report found changes in industry practice had caused different and escalating energy demands.
"For example, farm consolidation has created economies of scale in production, driving investment in more energy intensive farming equipment.
"However, voltage problems and electricity supply outages can limit production and damage equipment.
"For example, modern milking equipment that allows more cows to be milked has higher energy demands than older electricity networks can manage."
Challenges finding suitable sites for regional businesses that met modern energy requirements also limited potential growth.
"In places with fewer customers sharing costs, electricity distribution networks are more expensive and less reliable," the report found.
Tyendarra dairy famer, Bruce Knowles, said the south-west was an innovative and forward region that cared about sustainability, job creation and best practice.
"We are the economic backbone of Victoria through our food and fibre success, and three phase power will enable us to create prosperity for our region as a whole," Mr Knowles said.
But he said the biggest issue was with the Australian Energy Regulator.
Distribution network upgrades are assessed and approved by the AER.
In 2020 Powercor, the private local network provider, was unsuccessful in seeking approval from the Regulator to upgrade the network.
"There is discrimination, with regard to population density, and the fact that's what they work it all out on," Mr Knowles said.
"How they calculate where money is actually spent is holding everything back - that regulation has got to change.
"It's not a lot of money, in the grand scale of things, and if we are going to progress as a region the government has to get serious about it."
He said he was running a dairy operation milking 1500 cows.
"It would make a big difference," he said.
"It will give us reliability of power and enable us to move away from our diesel generators and also enable us to introduce solar power to a scale that's representative of our operation."
At the moment, the farm was limited to a five kilowatt system, because of the SWER line.
"How are we going to get growth?," he said.
"Even solar panels and wind farms rely on good transmission infrastructure, in order for them to operate properly."
Andrew Miller
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
I'm a general reporter with Stock & Land, with a special interest in irrigation issues. I completed my cadetship, with the Age, in 1980. Over my career, I've worked for ABC radio news (Mt Isa, Qld) and at provincial and suburban newspapers.
