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Precinct Energy Plant (PEP) Building Update
The Precinct Energy Plant (PEP) building was demolished in 2025 due to structural deficiencies that meant it was not suitable for public use.
It was initially intended to provide a creative arts space for our community.
Council acquired the PEP building in 2020, as part of a land swap with Development Victoria. Due diligence at that time reported the building would be suitable to be re-purposed for public use. However, engineering reports later revealed that the building was not suitable for public use and may not have withstood a significant earthquake.
While the likelihood of a significant earthquake was extremely low, in the interest of the surrounds and public safety, we took the decision to demolish the building.
There was no other cost-effective way to remediate the building and make it suitable for public use.
We assured the community that the building was sturdy and had remained in good condition for the 13 years since it was built.
Demolition commenced in April 2025 and concluded in August 2025.
A decision about the future use of the PEP site will be made at the proper time.
We remain committed to the co-design and community engagement objectives on the Creative Industry Space.
Project background
The Creative Industry Space (CIS) was the working title for a project that was planned to see the former Precinct Energy Plant (PEP) building on Halpin Way Dandenong redeveloped into a multi-level arts creation facility, with artist studios, rehearsal and performance spaces, and meeting areas.
The Precinct Energy Plant once provided an energy supply to properties in central Dandenong. Council acquired it from Development Victoria in 2020 as part of a land-swap after it was decommissioned as an energy plant.
Community consultation was conducted in 2020 to gauge preferences for the vacant PEP building’s use. This resoundingly favoured the idea of a place for local creative practitioners to produce and refine their work, and as a hub for engagement and learning amongst creative practitioners and the broader community. Council commissioned due diligence reports and a business case at that time by appropriate experts, that indicated the building would be suitable for this purpose.
Grants from Creative Victoria supported the development of the ground floor activation space in the former PEP building, enabling a limited range of creative activities.
Creative Victoria's grant also supported the development of concept design for future configurations for the PEP building which could host creative practices including bespoke workspaces, rooms, studios, venue facilities and equipment.
What will happen to the Creative Industry Space (CIS) project?
That project is on hold for now. We are committed to having a space for innovative and creative arts, but it won’t be in this building. We will consider the future of the Creative Industry Space in consultation with Creative Victoria.
What will you do with the site now the building is gone?
It is too early to indicate possible future use of the site. In due course, we will follow a rigorous and appropriate process for deciding the future of the site.
What does this mean for the Dandenong New Art Centre that’s supposed to be opening next door?
Our focus remains on creative spaces in the city including the Dandenong New Art (DNA) redevelopment on the corner of Halpin Way and Mason Street in Dandenong.
