VicGrid, the Victorian government agency responsible for transmission planning, has selected Spanish infrastructure company Acciona as the preferred development partner for the transmission project that will connect the first 2 GW of offshore wind capacity off Gippsland to Victoria’s electricity grid.
Acciona will work with VicGrid on project design, procurement and project management, helping prepare the shared transmission infrastructure for construction. At the end of the development phase, the company will submit a final project offer to VicGrid for construction of the transmission line.
The project includes a new 500 kV double-circuit overhead transmission line between a proposed terminal station near Giffard and the Loy Yang Power Station switchyard. The preferred route, identified in September, is approximately 60 kilometres long, with a corridor around 200 metres wide to accommodate the shared infrastructure.
The transmission project will support Victoria’s electricity supply as coal-fired power stations close and new generation sources connect to the grid, VicGrid said on 15 October.
Acciona was selected through a competitive procurement process launched in 2024. The company was one of three consortia shortlisted in 2025, alongside a consortium led by Iberdrola and another led by AusNet Transmission Group.
VicGrid said it would remain involved throughout the development phase, working with Acciona on the project design, environmental assessment, planning and approvals, and engagement with landholders, Traditional Owners and local communities.
The project, which is expected to be completed in 2031, requires an Environment Effects Statement (EES) and relevant Commonwealth and Victorian government approvals before construction can begin.
Victoria launched Australia’s first offshore wind auction in August 2026, with the process scheduled to remain open until August 2027, and contracts expected to be awarded in 2028.
The auction is part of Victoria’s plans to establish an offshore wind industry, with targets of at least 2 GW of installed capacity by 2032, 4 GW by 2035 and 9 GW by 2040. The shared transmission link is a key part of the infrastructure needed to connect the first projects to the grid.