VicGrid is also working on transmission and network upgrades across the state, which will improve and modernise the grid in the areas where sun and wind are abundant so more renewables can flow through Victoria.

Current and planned projects in Victoria

VicGrid is coordinating the development of transmission infrastructure to support offshore wind.

Status

In March 2024, we released a study area and preferred transmission technology for connecting offshore wind energy generated off the coast of Gippsland to the grid. We aim to narrow the study area to a preferred corridor through consultation with First Peoples, landholders, community, technical stakeholders and on-the-ground studies.

Following the declaration of the Gippsland offshore wind transmission project as ‘public works’ under the Victorian Environment Effects Act 1978, VicGrid will prepare an Environment Effects Statement.

We have also submitted a referral under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999. For more information, visit the project’s planning and environment page.

The Australian Government has declared a second offshore wind area off the Victorian coast in the Southern Ocean region. VicGrid will now take time to assess the implications of this announcement and the area that has been identified.

Benefit

Connecting at least 2 gigawatts (GW) of new offshore wind power by 2032, 4 GW by 2035 and 9 GW by 2040.

Providing a major new energy source that helps secure Victoria’s energy future.

A coordinated approach will reduce impacts on landscapes and local communities, encourage renewable energy generation investment and keep energy costs down for Victorians.

Consultation

Early engagement with communities and landholders is our priority. We are giving locals a real voice in the planning process and providing them with information and support throughout the process. To learn more, visit how we are making decisions.

VicGrid is committed to partnering with First Peoples.

For opportunities to get involved, visit Engage Victoria.

A 250 megavolt amperes synchronous condenser next to the Ararat Terminal Station to provide system strength services.

Status

Works commenced by Australian Energy Operations. Fourth REZ Stage 1 Projects Ministerial Order.

Benefit

Will unlock up to 600 MW of new renewable energy in the Western Victoria REZ.

VNI West is a proposed new high-capacity 500 kV double-circuit overhead transmission line between Victoria and New South Wales, running from Dinawan NSW via a new substation near Kerang to a terminal station connecting into the Western Renewables Link at Bulgana.

Status

RIT-T was completed by AEMO-Victoria Planning (AVP) (Victorian side) and Transgrid (NSW side) in May 2023.

In the early works stage (Route Refinement and Planning) by Transmission Company Victoria (TCV) (Victorian side) and Transgrid (NSW side). This stage is due to be completed in early 2026.

Visit TCV’s website to learn more and read the status of the project and ongoing opportunities for community input.

Visit the AEMO website to learn more about the RIT-T for VNI-West.

First VNI West and WRL Ministerial Order

Second VNI West and WRL Ministerial Order

Benefit

Allows for approximately 3.4 GW of additional renewable generation to be built across the solar-rich Murray River Renewable Energy Zone (REZ) and wind-rich Western Victoria REZ.

Connects Victoria to electricity supply and storage in NSW, ensuring reliable electricity access during high demand periods.

Enables export capacity to other states, particularly for offshore wind.

Plan B

Victoria Energy Policy Centre's Plan B report set out an alternative proposal to the design of the Victorian Transmission Network. It suggested alternative options to the delivery of the VNI-West project in order to meet Victoria's energy security and supply needs.

After careful and serious consideration, a review of Plan B found that it is not the right solution for Victoria. The review's findings included that Plan B would not deliver reliable renewable energy to Victoria without significant uncosted additional investments and doesn’t fully outline risks with construction and operation. Furthermore, the review found that the Plan B report underestimates the benefits of the VNI-West project, while the review doesn’t support the Plan B report assessment of security risks of VNI-West.

For more information read the Plan B review, which is available below.

Page last updated: 01/10/24