The Victorian Government has introduced a bill to consolidate energy infrastructure planning and streamline renewable energy deployment under a single statutory authority, VicGrid.
The National Electricity (Victoria) Amendment (VicGrid Stage 2 Reform) Bill 2025 grants VicGrid new powers to manage grid access, plan Renewable Energy Zones (REZs), and deliver major transmission projects, shifting authority from the Australian Energy Market Operator (AEMO).
The legislation empowers VicGrid to implement the 2025 Victorian Transmission Plan, giving the body oversight of the planning, development, and augmentation of the state’s declared transmission network.
Under the Bill, VicGrid takes over statutory functions including REZ planning, landholder compensation, and the issuance of new ‘Grid Impact Authorities’ and ‘REZ Scheme Authorities’ for project developers.
In addition to expanding VicGrid’s regulatory powers, the bill establishes two new funding streams aimed at ensuring equitable outcomes for communities affected by energy infrastructure.
The REZ Community Energy Funds will support local initiatives that boost energy efficiency, resilience and affordability in REZ host regions, while a separate Traditional Owners Fund is designed to advance self-determination outcomes.
“These reforms will make sure industry have the certainty they need to invest and VicGrid can do the important planning works that will keep the lights on and deliver cheap renewable power to Victorian homes and businesses,” said Minister for Energy and Resources Lily D’Ambrosio.
Developers will now be required to pay access fees to connect to the transmission network.
These fees will fund the newly created community benefit programs, formalising a mechanism to return value to affected regions.
Importantly, the Bill also legislates financial incentives for landholders, who will receive $8,000 per kilometre of hosted infrastructure annually, in addition to existing compensation entitlements.
Technically, the legislation modifies the application of the National Electricity Law and Rules within Victoria, inserting a suite of VicGrid-specific definitions, functions, and immunities.
It also repeals existing references to ‘CEO VicGrid’ in favour of a fully empowered corporate entity, and formally transfers operational responsibilities – such as land access rights, infrastructure planning, and protected information handling – from AEMO to VicGrid.
VicGrid is now authorised to conduct early works for network augmentations, enter land for investigations, and coordinate competitive tenders for REZ schemes.
It also gains information-gathering powers and access fee-setting capabilities comparable to those exercised by AEMO.