VicGrid has released a long-term strategic plan for the development of Victoria’s renewable energy zones designed to deliver certainty and fairness for communities and industry and keep the lights on as coal-fired power closes down.
The 2025 Victorian Transmission Plan has been developed through extensive consultation and sets out the transmission infrastructure we need to build over the next 15 years to deliver reliable and affordable energy to Victorian homes and businesses.
The plan proposes the creation of six renewable energy zones (REZs) that signal to the community, landholders and industry where wind and solar projects and batteries for storage should be developed.
VicGrid Chief Executive Alistair Parker said VicGrid had carefully considered all the feedback it received from the community, regional stakeholders, Traditional Owners and the agriculture and energy industries in preparing the plan.
'The Victorian Transmission Plan will ensure an orderly energy transition and has been designed through consultation to minimise impacts on landholders, regional communities and crucial regional industries like agriculture,' he said.
'VicGrid has worked hard to balance a range of factors as we make difficult decisions about where energy infrastructure is needed to deliver reliable and affordable power to Victorian homes, businesses and industry.'
The development of new renewable energy and transmission capacity will create 67,000 jobs by 2040, support new industries and create a foundation for our state’s economic prosperity.
Not implementing the plan would prevent new cheap renewables from being connected, which would push up energy prices, put Victoria’s energy security at risk and cost the economy $9.6 billion over the next 30 years.
In response to feedback following the release of the draft Victorian Transmission Plan in May, VicGrid has adjusted the size and shape of renewable energy zones and refined some of its transmission projects.
Some areas have been removed from or added to zones, and new separate sections have been added in the South West REZ and Central North REZ.
The Wimmera Mallee REZ has been expanded to allow for an increased number of projects currently in development and will now join the Grampians Wimmera REZ as one Western REZ, despite not being physically connected.
Mr Parker said feedback from communities and regional stakeholders about sensitive areas, including new information about brolga habitats and irrigated agricultural land, had resulted in a number of areas being removed from the renewable energy zones.
There was also clear feedback from industry stakeholders about the size of zones.
'Industry stakeholders consistently told us the size of zones and the amount of energy generated from each zone needed to be at a level that enabled the development of technically and commercially viable renewable projects,' he said.
The area covered by proposed renewable energy zones in the 2025 Victorian Transmission Plan takes up approximately 7.9% of Victorian land. Less than 1% of land will be needed to host physical infrastructure like wind turbines, solar panels and access roads.
Landholders, communities and Traditional Owners within zones will soon have another opportunity to provide feedback and seek more information through a six-week consultation process to formally declare renewable energy zones.
To read the 2025 Victorian Transmission Plan and supporting documents, visit VicGrid's website.
For media enquiries, please email vicgridmedia@deeca.vic.gov.au.
Page last updated: 18/08/25