– Tony Goodfellow, Policy & Engagement Manager, RE-Alliance.
The draft Victorian Transmission Plan (VTP) was published last month by Victoria’s grid planning agency, VicGrid – and it’s open to public feedback until 24 June, 2025.
Engage and share your perspectives
We encourage anyone with an interest in renewables in Victoria to get involved. VicGrid has been running extensive in person and online community engagement across the state. Find out more info here.
Why is there a draft Victorian Transmission Plan, now?
Renewable Energy Zones (REZ) are replacing coal fired power stations. These zones are areas with good sun, wind and grid connection (or potential to have grid connection). Grid connection is key to transport power from where it is generated by large-scale renewables to where it is needed. There have been past delays at a national level to coordinate transmission planning and delivery of upgrades and new infrastructure – and the VTP was in part created as a response to this.
The Victorian Government created VicGrid to lead transmission planning at a state level. They’ve established the planning framework, consulted on proposed Renewable Energy Zones and transmission, and proposed how the state will approach REZ area identification and associated benefit sharing.
To inform the VTP – its first transmission plan – VicGid consulted deeply with interactive mapping activity, and extensive engagement to develop this plan for the state’s grid out to 2040. The plan will be finalised after consultation, then updated again in two years, then every four years after that with public consultation occurring for each update. Within the framework and its work to date, VicGrid made a commitment to engage with, support self-determination for and partner with Traditional Owners through the process.
So, what’s in the draft VTP?
The draft VTP outlines what new generation and already-committed transmission projects and upgrades will be rolled out until 2040 and where it will be located. It identifies these specific areas as proposed Renewable Energy Zones. The locations for generation and transmission in the plan are based on several scenarios, which all ensure Victoria has a secure energy supply as ageing coal generators exit the state.
The plan proposes these locations to be designated as Victoria’s Renewable Energy Zones:
The proposed zones are – broadly – aligned with a previous ‘rough outline’ of Victorian REZs from the Australian Energy Market Operator’s ‘Integrated System Plan’ for the east-coast grid (covering QLD, NSW, VIC, TAS and SA). The previous AEMO ISP zones for Victoria (V1-V6) are below.
The major difference between VicGrid’s draft transmission plan and AEMO’s previous ISP, especially the 2020 ISP, is that VicGrid is proposing less total generation in the onshore REZs.
It’s great to see offshore wind maturing as an industry and the state government backing it as reflected in the VTP acknowledges that Victoria has been a leader in this space. Saying that, VicGrid needs to model contingencies for delays in deploying new generation, early coal closure and new demand (such as data centres) noting that onshore solar, storage and wind can (likely) be deployed more quickly.
How much new generation and storage for Victoria?
The VTP outlines that, by 2040, there is a planned extra 5.8 GW of onshore wind, 9 GW of offshore wind (in line with Victoria's legislated targets), 2.7 GW of utility solar and 3.4 GW of storage.
The proposed generation per Renewable Energy Zones are broken down further:
These generation capacity figures will become caps for access to transmission that will be defined for each REZ through regulation. The intent is to provide industry with certainty for grid access and to better manage project coordination and also coordinate benefits.
There’s not much detail on how projects outside the proposed REZ can proceed in the future, however the Government recognises in the plan that it needs to “develop an integrated REZ access and connection approach and transitional arrangements” for projects proposed both within and outside REZs.
There has been some commentary around the mix of technologies, with strong reliance on offshore wind as well as the ongoing role – and in later years, increasing role – for gas. The long-term outcomes of the latter warrant close attention, given the significant impact that gas continues to have on driving up electricity prices and emissions.
In general, the plan reflects a good process by VicGrid in engaging with and responding to community perspectives and feedback up to now. But we also see a need for ongoing investment in building public and community support and capacity in regions where there’s critical grid infrastructure being built, like the Western Renewables Link. Federal and state support for Local Energy Hubs in Victoria have strong community support.
Exactly what VicGrid’s ongoing role will be regarding community interface and engagement, alongside project planning and delivery, is not entirely clear as yet in the draft plan. While there is an intent to ensure community benefits sharing is delivered for REZ regions, how this wraps in with the transmission planning and generation coordination is expected soon, but was not released with the draft VTP. We expect this complementary document to be released soon with a consultation period to enable further community feedback.
We encourage all those with an interest in renewables development in Victoria to engage in this transmission plan consultation. Find out further information about in person hubs or online forums here.