State locks in six renewable energy zones after final round of nips, tucks and rethinks

Victoria has formally declared five onshore renewable energy zones (REZs) and one “shoreline” REZ that will lay the foundations for the state’s step-change from its current share of around 45 per cent of battery-backed wind and solar to 65 per cent by 2030 and 95 per cent by 2035.

Victorian energy minister Lily D’Ambrosio on Friday locked in the final design of the five onshore zones – South West, Central Highlands, Gippsland, Western and North West – and the Gippsland Shoreline REZ, after making some changes to the draft that was put forward for consultation in November.

The November draft set aside for further consultation a sixth onshore zone – the Central North REZ, that has been proposed in two sections: a western section between Bendigo and Tatura, and eastern section between Shepparton and Glenrowan.

The final design of the REZ map – see below – leaves the Central North REZ in the “proposed but not declared” basket, while locking in the REZ’s put forward in November, albeit with sharper boundaries and some nips and tucks to the areas included within them.

One of the biggest changes since the draft has been to the South West REZ, which had been proposed to cover two sections – a north section, between Casterton and Balmoral (known locally as the Dundas Tablelands), and a south section, south-west of Hamilton, between Macarthur and Darlington.

Ultimately, D’Ambrosio has chosen to formally declare only the southern section of the South West zone, setting aside the Dundas Tablelands “in recognition that more work is required on its suitability,” says VicGrid.

Image: VicGrid

The change recognises “the need to understand in more detail and consult further on concerns raised … regarding environmental and biodiversity values, land use constraints, and potential complexities for projects,” a fact sheet explains further.

Changes were also made to the Central Highlands REZ – which is located to the west and south of Ballarat – with the final design removing an area at the northern end of the zone and adding a small area in the south.

“These changes considered several factors, including land use constraints, land availability, community feedback and the likely preference of generators to connect to the 500 kilovolt (kV) line in the south,” a factsheet says.

Victoria’s Gippsland region, which has deep roots as the state’s coal centre and power generation and transmission hub, will host both the Gippsland Renewable Energy Zone – located between Morwell and Sale – and the Gippsland Shoreline REZ, which will host the underground cables connecting Australia’s first offshore wind farms to the main grid.

The onshore Gippsland REZ includes parts of the local government areas of Wellington Shire, Latrobe City and South Gippsland. A fact sheet on the REZ says the government “carefully considered all feedback” when deciding on the final design, “but not all community or industry requests have been acted on.”

The declared North West REZ includes parts of the Swan Hill, Gannawarra, Loddon and Buloke local government areas. The government says its design was informed by a careful balance of community concerns about “uncoordinated widespread development” with developer interest and strong wind and solar resources near existing transmission lines.

“This zone will help contain development and coordinate connections to the Victoria to New South Wales Interconnector West (VNI West) project and existing lines, and ensure regional benefits are delivered to those experiencing the impacts of infrastructure development,” a factsheet says.

“In response to consultation on this zone as part of the declaration process, some areas of high biodiversity value have been excluded. As these areas are not suitable for generation, their removal will not affect renewable energy investment in this zone.”

Some changes have been made to the Western REZ, too, which was proposed as two sections – an eastern section located between Stawell and Donald, and a western section located north of Horsham, between Dooen and Hopetoun.

According to a fact sheet, the final design factors in a series of boundary adjustments to the eastern section, including to exclude a small area overlapping with the Joel Joel Nature Conservation Reserve and sensitive ridgelines and areas of high biodiversity near Kara Kara National Park.

Also excluded was Morrl Morrl Nature Conservation Reserve.

VicGrid says consultation with farmers and their representatives has helped to zero in on areas where agricultural practices are more compatible with renewables development, like dryland broadacre cropping and grazing, and avoid intensive agriculture and irrigated districts.

VicGrid also notes that being in a REZ does not change the zoning of properties or interfere with planning laws and approvals processes, and “landholders have the choice of whether or not they host solar, wind or battery projects.”

It says only a small proportion of the land in each zone will actually host renewable energy infrastructure, with “much less than one per cent” of the state’s total land area required for physical kit like wind turbines and solar panels.

“Victoria’s coal-fired power stations are due to close over the next decade and a significant amount of new renewable energy development is needed to make sure we can meet increasing demand for electricity,” VicGrid chief Alistair Parker said in a statement on Friday.

“Renewable energy zones will ensure better coordination of projects and signal to communities and industry where the development of renewable energy should occur.

“The Minister’s declaration of zones will enable VicGrid to set clearer rules around how projects gain access to the grid, including expectations for how they engage with communities and deliver benefits.”

Parker says VicGrid has also released for consultation the draft Victorian Transmission Plan Guidelines, setting out the proposed approach being taken to develop the next Victorian Transmission Plan, in 2027.

This plan will take a 25-year view of the state’s transmission and renewable energy generation needs.

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