The ACT is slugging household power bills so it can meet its 100% renewable energy target by 2020

The Lake George wind farm, near Canberra, which generates electricity for 90,000 households. Photo: Ian Waldie/ Getty Images.

The ACT is set to be fully powered by renewable electricity within the next four years.

Having already pledged a 90% target by 2020 and a 100% target by 2025 last year, environment minister Simon Corbell is boosting the current renewables auction from 109 megawatts to 200MW, with bids due on May 13.

By increasing the target, the state government will become the first in the country to use 100% green electricity.

The move, however, comes at a cost. Resident will see a $300-per-year hike on their electricity bill — that’s an extra $5.50 per week.

However, Corbell says the cost to households could be largely offset by energy efficiency measures.

“As leaders in the renewable energy field, the ACT is reaping the environmental and economic benefits of decarbonisation,” he said.

“Being powered by 100% renewables by 2020 places Canberra at the lead, both in Australia and internationally, of cities taking effective action on climate change.”

So far the government has secured over $400 million worth of investment for renewable energy in the ACT. This funding will go towards the seven contracts which the government has already signed.

These include:

  • 200MW capacity of wind energy at Hornsdale (the first to begin operating in 2017, the second in 2018)
  • 80.5MW of wind energy at Ararat (2017)
  • 19.4MW of wind at Coonooer Bridge, Bendigo
  • 100MW of wind at Sapphire (2018)
  • 20MW of solar capacity at Royalla
  • 13MW of solar at Mugga Lane (this year)
  • 10MW of solar at Williamsdale (this year)

The ABC has more.

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.