VicGrid Releases the Draft 2025 Victorian Transmission Plan for Community and Industry Feedback

VicGrid, the government body responsible for planning and developing Victoria’s renewable energy zones, has released the Draft 2025 Victorian Transmission Plan for community and industry feedback before release of the final plan later in 2025.

The plan is necessary for power operations and keeping energy costs affordable as Victoria’s coal-fired power stations close. It sets out the amount of wind and solar energy expected in Victoria over the next 15 years and identifies the suitable locations for new renewable energy and transmission projects.

The draft plan identifies proposed areas for the renewable energy zones. In total, less than 1% of the state will be required for onshore renewable infrastructure. While the proposed renewable energy zones cover about 7% of the state, all the land will not host energy infrastructure. Many of the projects will also be able to coexist with other land uses.

All proposed projects will continue to be subject to planning and environmental approval processes. The 7 proposed onshore renewable energy zones identified in the plan were selected for their suitability to host renewable energy projects, considering feedback from communities, landholders, Traditional Owners, the quality of wind and solar resources, existing land uses and the role of projects in connecting to the grid.

VicGrid has considered and learnt from the agriculture industry to ensure the draft plan minimizes impacts and focuses development in areas where farming and renewable energy are more compatible. VicGrid is also working to ensure new transmission is built in the right places and at the right time to reduce the total amount of new transmission required and minimize costs for Victorians.

The upgrades to existing transmission lines are prioritized wherever possible to minimize impacts on landholders and communities and to limit cost impacts on consumer power bills.

The Victorian Transmission Plan has identified the need for 4 new transmission lines in addition to projects under construction. The new projects include an additional line to support future offshore wind energy in Gippsland, a second line from South West Victoria to Melbourne, a second line between Yallourn and Hazelwood and a short line between Truganina and Deer Park in Melbourne.

VicGrid will investigate the use of or expansion of existing easements for any new transmission lines.

Landowners hosting transmission will receive full compensation under the Land Acquisition and Compensation Act. The Victorian Government has also introduced an additional payment of $8,000 per km per year to recognize the role of landholders in hosting energy infrastructure.

Projects inside renewable energy zones will be required to contribute to Renewable Energy Zone Community Energy Funds, which are subject to public consultation and will be finalized before the publication of the final Victorian Transmission Plan. The funds are in addition to benefits provided by individual proponents.

Projects outside of a final renewable energy zone will also be required to meet standards of community engagement and benefits set out by the government and will be subject to a Grid Impact Assessment. As part of the assessment, the project will be required to prove that it will not have a negative impact on other projects inside the zone by limiting their generation and taking up capacity on the grid.

The Renewable Energy Zone Community Energy Funds will be used to improve energy supply, reliability and affordability for communities, households and businesses. This is expected to include solar panels, microgrids and cheaper energy. VicGrid will work with local councils and communities to understand their priorities for funding.

The final Renewable Energy Zone Community Benefits Plan, including estimated amounts, will be published alongside the final Victorian Transmission Plan.