The newly formed VicGrid has released a first draft of the much anticipated Victorian Transmission Plan, proposing the establishment of seven renewable energy zones and four new transmission lines to support the state’s transition to 65 per cent renewables by 2030 and 95 per cent by 2035.
The seven renewable energy zones (REZs) proposed by VicGrid in the draft – and illustrated on the map below – include Central Highlands, Central North, Gippsland, North West, South West, Grampians Wimmera and Wimmera Southern Mallee.
They are smaller than the REZs being rolled out in NSW, and together they are expected to host more than 8 gigawatts of new capacity, and most of this (more than 6.6 GW) will be wind.
VicGrid says they have been chosen in close consultation with communities and industry and in consideration of key inputs.
These include existing and future transmission infrastructure development, potential economic benefits to local communities, harnessing the state’s best wind and solar resources, and hitting the state’s renewable energy and emissions reduction targets.
On the transmission front, VicGrid is proposing four new lines, alongside augmention of some existing grid infrastructure.
These include a second Hazelwood to Yallourn double circuit 220 kilovolt (kV) line in Gippsland, around 10 km long, and a new 500 kV transmission line from the existing transmission network near Driffield to Woodside and then from Woodside to Giffard.
A new 500 kV line is proposed for South West Victoria from Tarrone to Mortlake, Moorabool, Truganina and then Sydenham in Melbourne’s north, and a new 500/220 kV terminal station near Truganina and two 220 kV lines connecting to Deer Park terminal station in Melbourne are also proposed.
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VicGrid was established by the state Labor government in mid-2023 to take over from the Australian Energy Market Operator (AEMO), in response to growing frustration and community angst with the build out of new network capacity in the state.
The draft 2025 Victorian Transmission Plan takes a 15-year outlook and VicGrid says it will publish an updated plan in 2027 and every four years after, or more often if required.
The seven REZs proposed for across the state are described in the draft report as “relatively small areas” – particularly in comparison to what have become known not-so affectionately as the “blobs” initially proposed for Victoria by AEMO.
VicGrid says that, when combined, the REZs cover less than 7% of the state’s land area and then, within those zone, only about 11% of the total combined area will be needed to host wind and solar projects, equating to less than 1% of the total land area of Victoria.
Alistair Parker, the CEO of VicGrid, says the new plan aims to minimise impacts on regional and rural communities, landholders and First Peoples and keep costs low for consumers, while giving industry the certainty it needs to invest.
“Victoria is moving away from ageing coal-fired power stations to cheaper renewable energy sources such as wind and solar,” Parker said on Thursday.
“VicGrid is making sure this change delivers the safe, reliable and affordable power Victoria needs to keep the lights on.”
Both VicGrid and the state Labor government will be hoping the new plan takes some of the heat out of the subject of Victoria’s transition to renewables, and in particular ameliorates concerns that solar and wind can only progress at the expense of farming.
This has included concerted efforts to avoid the state’s dairy farming centres, particularly in the south-west.
VicGrid now wants to get feedback from industry, landholders, communities and First Peoples about the impacts and opportunities of the draft plan, including the proposed renewable energy zones and transmission projects.Â
This can be done via engage.vic.gov.au/victransmissionplan or by calling 1800 418 341. The deadline for submissions and feedback is Tuesday 24 June 2025.
In the meantime, early feedback from the industry has been cautiously positive – welcoming the arrival of the first draft and its efforts to provide a clear path forward for all parties and offering first thoughts on potential pinch-points.
“Getting REZ design right is a difficult task and VicGrid and the Victorian government are to be commended for their work on this to-date,” said the Clean Energy Council’s general manager of markets, operations and grid Christiaan Zuur, on Thursday.
“There is a lot of devil in the detail which needs to be considered and designed to ensure the plan delivers on [its] objectives
“This includes ensuring that the REZ’s have sufficient capacity to unlock the enormous requirement and potential for new generation and storage, and provide clear and fair approach to network access and treatment of projects that have been developed outside of the designated REZs.”
Andrew Bray, the ational director of community advocacy group RE-Alliance says the key to the plan’s progress from here will be engagement.
“This plan needs to be well communicated so communities understand how energy projects can be rolled out in the places they live,” Bray said on Thursday.
Bray suggests VicGrid establishes a greater presence in key regions and sets out clear guidelines on how it will work with communities to incorporate local knowledge and feedback as its takes the next steps.
RE-Alliance is also pushing for the establishment of Local Energy Hubs – physical centres with a strong outreach program, staffed by independent local experts to help build trust and provide accurate information about renewable energy and tranmission.
“What we hear from rural and regional leaders in Victoria is that people in the regions generally support the shift to renewable energy – but there has been a lot of uncertainty about how this shift will happen and what it means for each community,” Bray says.
