Victoria has taken a step toward a renewable-powered future with the release of VicGrid’s Draft 2025 Victorian Transmission Plan (VTP).
The plan sets out seven new Renewable Energy Zones (REZs) and proposes four key transmission projects to support the shift away from coal.
The VTP outlines the infrastructure and capacity needed over the next 15 years to replace retiring coal-fired power stations and ensure a reliable, affordable electricity supply across the state.
It marks the first integrated, long-term strategic plan under Victoria’s new Transmission Investment Framework.
By 2040, Victoria is planning for 5.8 GW of new onshore wind, 2.7 GW of utility-scale solar, 3.4 GW of storage, and 9 GW of offshore wind generation.
To support this, the draft VTP identifies priority areas for new generation and proposes strategic upgrades and new lines to avoid grid congestion and reduce consumer costs.
“Establishing renewable energy zones will deliver new benefits for local communities and provide a signal to industry on where to focus when developing new projects,” the report states.
The seven proposed REZs – Central Highlands, Central North, Gippsland, North West, South West, Grampians Wimmera and Wimmera Southern Mallee – together cover 7 per cent of the state’s land, though only around 11 per cent of that area is expected to host infrastructure.
In parallel, a new Gippsland Shoreline REZ has been mapped to coordinate offshore wind transmission.
Transmission projects flagged in the draft include a second line to support offshore wind in Gippsland, new line between Sydenham and Tarrone, a second line between Yallourn and Hazelwood, and a short link between Truganina and Deer Park.
Landholders will be eligible for $8,000 per kilometre per year in additional payments, on top of compensation under the Land Acquisition and Compensation Act.
VicGrid has also committed to co-designing community benefits with local councils and Traditional Owners, including funding for microgrids, solar panels and cheaper energy access.
Public consultation is now open via Engage Victoria, with feedback to shape the final plan due later in 2025.