VicGrid has released its 2025 Victorian Transmission Plan, setting out a 15-year roadmap for expanding electricity transmission infrastructure as the state prepares for the retirement of coal-fired generation and a shift towards renewables.
The plan identifies six Renewable Energy Zones (REZs) across the state, intended to guide where wind, solar, and battery storage projects should be developed. The proposal aims to connect new generation to the grid while minimising disruption to regional communities and landholders.
“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,” said VicGrid chief executive Alistair Parker.
Developed following extensive public and industry engagement, the plan is intended to underpin long-term energy reliability, reduce costs, and support economic growth. According to VicGrid, full implementation could support 67,000 jobs by 2040 and help establish new industries. In contrast, failing to act could cost the economy €9.6 billion over 30 years, the agency said.
Following feedback on a draft version released in May, VicGrid made several adjustments, including changes to the size and shape of proposed zones and refinements to transmission routes. Sensitive areas such as brolga habitats and irrigated farmland have been removed from development areas after input from communities and regional stakeholders.
The Wimmera Mallee REZ has also been expanded to accommodate more advanced projects and will be merged with the Grampians Wimmera REZ to form a single Western REZ.
Industry participants advised that the proposed zones should offer sufficient scale and connection capacity to make projects technically and commercially viable. VicGrid said the six REZs would cover about 7.9% of Victoria’s land area, with less than 1% required for physical infrastructure such as turbines, solar panels, and access roads.
A new six-week consultation process will now begin, giving landholders, Traditional Owners, and communities a further opportunity to provide input before the zones are formally declared.
