Solar plant to power Melbourne tram network

A first large-scale solar plant will soon stand in Victoria to power Melbourne's trams network. The state government said on Thursday that the solar plant is bound to produce 75 megawatts of power. It is expected to be completed next year.

Half of the megawatts of power from the solar plant will be utilised for the tram network. Energy, Environment and Climate Change Minister Lily D'Ambrosio has claimed that 35 megawatts of power will be enough for 410 trams in the Melbourne network.

Melbourne tram network utilising solar energy is a first in the world. D'Ambrosio said the government continues to uphold its commitment to grow renewable energy.

In connection to this, D'Ambrosio has revealed what the government plans to increase investments in renewable energy. The tender to build the solar plant is expected to provide jobs for 300 people. It will open in the first half of this year.

Energy coming from the plant will flow into the broader electricity system. To ensure financial certainty, the government plans to buy renewable energy certificates. Producers of renewable power, on the other hand, can sell both electricity and renewable energy certificates for additional revenue.

D'Ambrosio is confident that there are enough funds to cover the cost of building the project. When asked if the solar project would cost more than utilising existing baseload power, she said more renewable energy that comes into the system actually puts downward pressure on electricity prices.

The solar energy will have a "particular advantage" in northeastern Victoria according to D'Ambrosio. Meanwhile, environmental groups such as Friends of the Earth support the project. The group believes that the move would help the government meet its renewable energy target of 40 percent by 2025.

The Melbourne tramway is known as a major form of public transport in Melbourne. It is the second most used form of transportation in overall boardings next to the commuter railway network.