Gippsland offshore wind transmission

VicGrid's study area

VicGrid is developing the shared transmission needed to connect offshore wind energy generated off the Gippsland coast to the grid.

In March 2024, we confirmed a study area for the transmission needed to achieve at least 2 GW of offshore wind energy by 2032. The study area starts approximately 6 km from the coast near Giffard and extends northwest past Stradbroke West to Willung, across to Flynns Creek to the Loy Yang Power Station.

VicGrid has completed desktop analysis and applied the refinement criteria to identify and assess areas suitable for further investigation to host transmission for the first 2 GW of offshore wind.

Using these criteria and VicGrid’s guiding principles, our refinement work so far has identified:

• areas that are not suitable for further investigation and have been removed from the study area
• areas suitable for further investigation to host transmission infrastructure.

Some areas have been identified as not suitable to host transmission for a range of reasons, including presence of highly sensitive protected species, technical constructability or feasibility.

For more information on our work so far to refine the study area, read our refinement factsheet below.

View our interactive map of the study area.

Gippsland offshore wind transmission technology

VicGrid needs to decide the technology to be used for the new transmission and how we will connect to the grid.

After careful consideration of the merits and complexities of 330 kilovolt (kV) and 500 kV transmission technology, we decided a 500 kV transmission line is the most suitable solution for this project.

500 kV transmission has a higher transfer capacity than 330 kV transmission technology and will result in around half the power loss of 330 kV transmission. Power losses happen when electricity is transported across a network, and higher power losses increase costs for consumers.

To achieve future offshore wind energy targets of up to 9 gigawatt (GW), the 500 kV solution would require only a single set of towers per corridor. The 330 kV solution would require two sets of shorter towers, which would have a higher visual amenity impact.

Industry engagement

To inform our technical work, VicGrid is engaging with offshore wind developers to understand their needs and ensure a coordinated approach.

We are engaging with the offshore wind developers holding feasibility licences granted by the Commonwealth; those who have progressed to First Peoples consultation, the Australian Energy Market Operator, and the federal Department of Climate Change, Energy, the Environment and Water.

As part of confirming the study area in early 2024, VicGrid committed to taking a coordination role with offshore wind developers in the area between the coast and the connection hub.

VicGrid is developing a coordination strategy that will look at how and where offshore wind developers will:

• bring their offshore wind cables onshore, and
• build their underground cables between the coast and the VicGrid connection hub.

We’re consulting with offshore wind developers to better understand their technical requirements and ensure these are considered early in our planning.

The strategy will also consider how we can best support landholders and communities in this area and ensure a consistent approach to landholder engagement, community consultation and information sharing.

A coordinated offshore wind industry will help to minimise impacts on host landholders and communities.

In early 2025, we will share more on the onshore connection coordination strategy and will seek feedback from communities and landholders near the Gippsland coast to help inform our decisions.

Who will deliver the transmission line?

VicGrid is running a competitive two-stage tender process to select a Development Partner to:

• design, build, finance, operate and maintain the transmission line and connection hub
• work closely with landholders, Traditional Owners and local communities
• deliver value for money for Victorian energy users.

Partnering with industry to build Victoria’s offshore wind connection

VicGrid is moving into the next exciting phase of the Gippsland offshore wind transmission project, working with industry to deliver the critical infrastructure that will connect the first 2 gigawatts of offshore wind to Victoria’s electricity grid.

After a strong response to our expression of interest, we have now shortlisted three consortia to take part in the next stage – the invitation to tender.

The shortlisted consortia are:

• Gippsland Coast Connect: Led by Iberdrola Australia with Capella Capital and John Holland.
• Genesis Partnerships: Led by AusNet and Pacific Partnerships, with CPB Contractors, UGL Engineering and UGL Operations and Maintenance.
• Acciona: Led by Acciona, supported by Acciona Concessiones, Acciona Construction and Genus Infrastructure (NSW).

This process isn’t just about technical delivery. Each proponent will need to demonstrate how they will work respectfully with landholders, Traditional Owners and local communities – and how they will bring lasting benefits to the Gippsland region. Early and genuine engagement is a key part of the project’s success, and we’re looking for partners who share our commitment to getting this right.

We expect to appoint a development partner in 2026, with early works beginning soon after.

Project activity

Current project activities provided by VicGrid regarding offshore wind transmission.

Next steps

We are getting on with the job of refining the study area to identify the best location for the new transmission line, ensuring it minimises impacts and can be built in time to connect large-scale energy from offshore wind to consumers.

In 2025, VicGrid will continue talking with landholders in the study area to progress field studies and other investigations to decide the transmission corridor and connection hub location.

VicGrid is also starting work on environmental assessments to inform preparation of the Environment Effects Statement.

Information gathered through feedback from landholders, community, field studies and environmental assessments will build on our understanding of important areas and features in the study area and help us minimise impacts on host communities.

Learn more about how the project is assessing environmental impacts in our assessing environmental impacts factsheet.

Find out more

Page last updated: 16/10/25