Victoria Gov’t Proposing New Offshore Wind Line in 15-Year Transmission Plan

The Victorian government has published the draft Victorian Transmission Plan (VTP), which identifies locations for new renewable energy and transmission projects. In the 2025 VTP, the government is proposing new transmission projects, including a new line for future offshore wind energy in Gippsland.

The draft VTP was published on 16 May for public consultation, with the final plan set to be published later this year.

In the new plan, the state government is proposing new Renewable Energy Zones (REZs) and new transmission investments required in the next 15 years to support renewable energy zone development.

The VTP outlines seven new Renewable Energy Zones, all planned to accommodate new onshore wind and solar energy capacity.

The government is also proposing four new transmission projects: a second radial line and tie-in loop in Gippsland to facilitate offshore wind, a new line between Sydenham and Tarrone, a new line between Truganina and Deer Park, and an additional short line between Hazelwood and Yallourn.

The new zone for offshore wind, dubbed Gippsland shoreline REZ, would indicate to developers of future offshore wind farms in Victoria where to locate their onshore connection infrastructure, such as onshore cables, and minimise the impact on areas outside of the zone, according to the draft VTP.

Preparation for a new Gippsland shared transmission line is already underway to support the first 2 GW of offshore wind, the Victorian government states in the document, but additional transmission infrastructure will be required to accommodate offshore wind generation beyond the first 2 GW.

The draft VTP also proposes upgrades to transmission lines in the Portland area to be carried out in the 2030s to accommodate offshore wind in the Southern Ocean.

The Victorian government has set offshore wind generation targets of at least 2 GW of generation capacity by 2032, 4 GW by 2035 and 9 GW by 2040.

In July 2024, the Australian government granted feasibility licences for twelve potential projects in the Gippsland offshore wind declared area, and in February 2025, a feasibility licence was awarded in the Southern Ocean declared area.

VicGrid is responsible for planning the shared transmission infrastructure needed to connect these future projects to the grid.

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