Renewable energy zones

The Victorian Transmission Plan

The Victorian Transmission Plan will ensure we have the right infrastructure in the right place at the right time to support the transition to renewable energy.

The plan will identify what renewable energy generation, storage and transmission projects are needed, when they are needed, and where they should be built.

We are engaging with First Peoples, landholders, communities and industry as we develop the plan, to identify the best places to host Victoria’s future renewable energy zones and supporting transmission infrastructure.

What are renewable energy zones?

Renewable energy zones will be areas of the state that not only have abundant renewable energy resources, such as wind and sun, but are also appropriate for development from a land use and environmental perspective. We’re planning the future energy grid with the batteries and high-voltage wires needed to develop renewable energy resources at scale and in a coordinated way.

This is a significant transformation for our energy system.

We need good planning and management to deliver the best outcomes for Victorians. This must be coupled with genuine partnership with Traditional Owners and engagement with host communities and landholders. By identifying Renewable Energy Zones, we can coordinate development to minimise negative impacts on local communities and maximise regional development and job opportunities.

2025 Victorian Transmission Plan

We will publish a Victorian Transmission Plan (VTP) in 2025, 2027, and then every 4 years following.

The 2025 VTP will take a 15-year view of transmission and renewable energy zone development in Victoria, to enable a timely and smooth transition to renewables as coal-fired power stations retire.

Developing the 2025 VTP involves 5 steps to answer these questions:

What areas are most suitable for renewable energy generation?
How much wind or solar energy should we be planning for within each area?
What additional or upgraded transmission infrastructure is needed to connect potential energy generation projects to the grid?
When do we need additional or upgraded transmission infrastructure?
What is the right mix of generation and transmission projects that is robust across all scenarios?

The 2025 VTP will identify proposed renewable energy zones (REZs) for Victoria, as well as the transmission projects needed to enable REZ development over the next 15 years.

Subsequent VTPs will take a 25-year view.

2024 Victorian Transmission Plan Guidelines

The 2024 Victorian Transmission Plan Guidelines (VTP) outline how VicGrid will develop the 2025 VTP.

The guidelines include information about:

what parts of Victoria we will investigate further for suitability to host potential future renewable energy zones
how we will determine how much energy Victoria needs, and when
how we will determine what transmission projects Victoria needs to support new energy generation
what future scenarios will be considered as we develop the plan
how we will partner with First Peoples and engage with landholders, communities and industry.

The guidelines were released as a draft for consultation from 22 July to 25 August 2024.

Feedback from communities, First Peoples and industry provided valuable insights that helped shape the guidelines.

Consultation

Developing the Victorian Transmission Plan and renewable energy zones

The Victorian Government, through VicGrid, is putting in place a long-term plan to ensure we have the right infrastructure in the right place at the right time to support the transition to renewable energy.

The plan will identify what renewable energy generation, storage and transmission projects are needed, when they are needed, and where they should be built.

We received written submissions from a wide range of industry and community stakeholders. These included market and regulatory bodies, renewable generation developers, financiers, council representatives, business associations, energy user groups, and residents in a renewable energy zone.

The volume and diversity of responses highlighted the importance of this initiative for the Victorian community and the energy industry.

Developing offshore wind and the next stage of Victoria’s REZs

The Victorian Offshore Wind Policy Directions Paper outlines our vision for establishing Australia’s first offshore wind sector and our targets of at least 2 GW by 2032, 4 GW by 2035 and 9 GW by 2040.

Following stakeholder engagement, we have also released the first Offshore Wind Implementation Statement. This includes details on our approach to developing the transmission network to provide offshore wind farms near the Gippsland Coast and Portland with access to the grid.

Engagement on offshore wind transmission will commence in early 2023.

Investing in Renewable Energy Zones

The Victorian Government worked with the Australian Energy Market Operator (AEMO) to identify network investments to support the timely and efficient development of REZs.

The Victorian Renewable Energy Zones Development Plan identified potential near-term projects to reduce existing constraints and support the connection of Victoria’s pipeline of renewable energy projects (Stage One projects). This included minor network augmentation works, projects to strengthen the system and larger augmentation projects.

$480 million from the REZ Fund has been invested in 12 Stage One projects to strengthen and modernise the state’s grid.

Learn more about these Stage One projects and other transmission and grid upgrades to support our clean energy transition.

Page last updated: 13/11/24