Victoria's Daniel Andrews digs in over NEG

Kaitlyn Offer

Victoria won't risk its growing renewable energy sector by agreeing to a national plan that hasn't passed the federal government's party room, says Premier Daniel Andrews.

The state Labor government along with the Queensland Labor government want to see the National Energy Guarantee pass the federal coalition party room before agreeing to it themselves at a COAG meeting on Friday.

"If this Friday's meeting was to occur next Friday after the coalition party room has or hasn't agreed to (Prime Minister Malcolm) Turnbull's plan, well then maybe we'd be a lot clearer," Mr Andrews told reporters.

"I'm not too keen to be proxying off jobs and supply in Victoria to Tony Abbott and the Senate crossbench."

Federal Energy Minister Josh Frydenberg will meet with his state counterparts on Friday where the plan will be front and centre.

Rogue MPs including former prime minister Tony Abbott have cast doubt over the policy, with many arguing for new investment in coal-fired power generation.

Instead of waiting for national energy targets, Victoria has set its own at 25 per cent by 2020 and 40 per cent by 2025.

Business groups have called for a national policy to provide certainty, but Mr Andrews is not swayed.

"I don't necessarily agree with this notion that anything is better than what we have now," he said.

"We know there's more to do, we want to do more, that's why we want to sign up to an agreement that enhances the likelihood of more supply and more jobs."

Mr Andrews said his government would not be agreeing to a plan that risked Victorian jobs or more supply into the grid.

After Mr Frydenberg meets with the states and territories, the policy will be taken to a coalition party room meeting next Tuesday.

States and territories will get final sign-off in a phone hook-up after that meeting.