Victoria Gov’t Adopts Plan for Renewable Energy Zones

The Victorian government has published the final 2025 Victorian Transmission Plan, outlining six renewable energy zones (REZs), a dedicated shoreline zone for offshore wind connections, and associated transmission infrastructure to support grid transformation.

A six-week consultation has now kicked off, where landholders, communities, and Traditional Owners have the opportunity to provide feedback.

The six REZs set out in the plan are for the South West, the Central Highlands, the Central North, Gippsland, the North West, and the West. The areas across the state are most suitable to host new renewable energy generation, such as wind turbines and solar farms.

The proposed Gippsland Shoreline REZ, which is not intended for onshore wind or solar projects, is a designated area where offshore wind developers will need to locate infrastructure such as underground cables to connect offshore wind farms to the grid.

It is located in the region’s south, near the towns of Woodside and Giffard, and between the coastline and the South Gippsland Highway. The REZ is within the boundaries of the Gunaikurnai Land and Waters Aboriginal Corporation and the Wellington Shire local government area.

There will be designated areas within the zone where offshore wind export cables are allowed to cross the shore.

The 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.

In addition, the plan sets out transmission network upgrades needed from 2025 to 2040. The projects range from upgrades within existing terminal stations to the reconstruction of existing transmission infrastructure and four new transmission projects.

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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