Victoria’s 2025 Transmission Plan (VTP), released by VicGrid, expands renewable energy zones for solar, wind, and batteries by 200,000 hectares.
The designated area for renewable hubs grows from 1.66 million hectares to 1.88 million hectares, now covering 7.9% of the state’s land.
The number of renewable energy zones increases from seven to nine after industry feedback called for more viable project space.
Major changes include an expansion of the Wimmera-Southern Mallee zone and a new zone around Coleraine in the south-west.
By 2040, Victoria plans to add 9.6 GW of onshore wind, 9 GW of offshore wind, 8.9 GW of large-scale solar, and 7.7 GW of new storage capacity.
Renewable energy supplied more than 42% of Victoria’s electricity last financial year, reaching record levels of generation.
Scenario 2 of the VTP forecasts up to 14.2 GW of new wind and solar if energy-intensive industries like hydrogen and data centres grow at scale.
Victoria maintains the lowest wholesale power prices in Australia, averaging $107/MWh compared to higher costs in NSW, SA, Queensland, and Tasmania.
The estimated cost of connecting renewable zones has risen from $4.3 billion to $7.9 billion, with a net present cost of $4.2 billion after adjustments.
These costs will increase consumer bills, but the government argues they will be offset by lower wholesale prices and long-term savings from more renewable energy.