The Vision 2030 report said strong population growth and economic expansion was expected to double the demands on the state's energy industry.

Vision 2030 also predicted that the traditional state-based energy sectors would be replaced by a national network.

This sentiment was reflected by the recent announcement that Queensland government-owned corporation, Powerlink, and its NSW counterpart, Transgrid, have begun working to determine the viability of expanding the high-voltage electricity interconnector between the two states by 20%.

Meanwhile, VENCorp’s investment estimates come in addition to current industry predictions of $4 billion needed over the next 15 years for a new generation capacity and $10 billion to replace and extend the state’s electricity distribution system.

The report claimed that total expenditure requirement ranged from $1 billion to $2 billion, while up to $6 billion could be needed for major long-haul electricity links and gas pipelines, if Victoria became a big importer of energy from remote sources.

It also forecasted that gas-powered generation was likely to meet a large proportion of Victoria’s electricity demand growth, which would drive the additional gas pipeline and electricity infrastructure.

This prediction also accounts for the long-term decline of Victoria’s main gas supplies from the Bass Strait and Cooper Basin in South Australia. It said gas from Papua New Guinea or north-western Australia would probably replace the dwindling supplies.

Energy industry and resources minister Theo Theophanous said the report would help plan and identify growth corridors in need of investment.

For instance, the report said the south-western corridor from Melbourne could require the greatest infrastructure boost with a 200% increase in gas capacity and a 100% increase in electricity.

It concluded that the Melbourne to Geelong region alone could require Victoria’s greatest electricity expenditure – more than $600 million was needed on new electricity infrastructure.