VicGrid has published the draft 2025 Victorian Transmission Plan, inviting community and stakeholder feedback on the seven proposed renewable energy zones and four new transmission lines to keep the lights on as the state’s coal-fired power stations close.
The plan sets out how much more wind and solar energy Victoria is expected to need over the next 15 years and identifies the most suitable locations for new renewable energy and transmission projects.
The seven proposed onshore renewable energy zones identified in the plan were chosen for their suitability to host renewable energy projects, taking into account feedback from communities, landholders, Traditional Owners, the quality of wind and solar resources, existing land uses and how projects can connect to the grid.
The proposed onshore renewable energy zones include the Central Highlands, Central North, Gippsland, North West, South West, Grampians Wimmera and Wimmera Southern Mallee.
A proposed new shoreline renewable energy zone in Gippsland is also set out, as well as a designated area that enables offshore wind developers to determine suitable routes to the transmission connection hub, while minimising impacts on nearby towns and landscapes.
VicGrid said it has listened and learnt from the agriculture industry to ensure the draft plan minimises impacts and focuses development in areas where farming and renewable energy are believed to be more compatible.
Landholders in renewable energy zones will be able to choose whether they host new wind or solar farms on their properties. VicGrid said it is the landholder’s decision and encouraged them to discuss this with their neighbours.
All proposed projects will continue to be subject to planning and environmental approval processes.
The government body also said it is working to ensure new transmission is built in the right places and at the right time to reduce the total amount of new transmission needed and keep costs as low as possible for Victorians.
VicGrid has prioritised upgrades to existing transmission lines wherever possible to minimise impacts on landholders and communities and to limit cost impacts on consumer power bills.
However, the Victorian Transmission Plan identifies the need for four new transmission lines in addition to projects already underway.
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.
Where possible, VicGrid said it will investigate the use of or expansion of existing easements for any new transmission lines.
Landowners who host transmission are expected to receive compensation under the Land Acquisition and Compensation Act. The Victorian Government has also introduced an additional payment of $8000 per kilometre per year to recognise the important role landholders play in hosting energy infrastructure.
Projects inside renewable energy zones will be required to contribute to Renewable Energy Zone Community Energy Funds, which have been subject to public consultation and will be finalised before the publication of the final Victorian Transmission Plan. These funds are expected to be 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 this assessment, the project must prove 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 final 2025 Victorian Transmission Plan is set to be released later in 2025.
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