This article deals with the treatment of grid-connected solar and wind energy in the Australian state of Victoria during the period from the mid-1970s to 1994. Traditionally, electricity authorities and governments tend to dismiss these options claiming that they are too expensive and only produce intermittent power. Proponents of solar and wind energy dispute this, arguing that such assessments ignore the significant environmental benefits of renewable energy. In this article it is argued that an explanation for the treatment of renewable energy needs to start from an analysis of the structure and development of the electricity supply industry, and the political processes which have shaped the industry. This history shows that the neglect of solar and wind energy in Victoria was influenced more by electricity planning considerations and the political agenda of the Victorian ALP government than by economic and technical criteria.