Victoria Renewable Energy Zones

Victoria Renewable Energy Zones

The Victorian Government has committed to develop six Renewable Energy Zones (REZs) in the State, located in the:

  • Ovens Murray
  • River Murray
  • Western Victoria
  • South West
  • Gippsland, and
  • Central North regions.

The REZs are intended to encourage investment in renewable generation and storage projects, though the intended capacity of each remains undisclosed. Delivery of the REZs will be conducted in two stages: 

  • Stage One: immediate priority transmission projects to support intended generation, and
  • Stage Two: medium-term generation, storage, and transmission projects which require further analysis.

The Federal Government has announced potential Commonwealth Offshore Wind Areas on the coast of Portland and Gippsland which may utlise the transmission infrastructure constructed as part of the South West and Gippsland REZs respectively. 

Key Dates

Feb 2021 Project Announcement

Funding contributions

Victorian Government

The Victorian Government comitted $540 million to establish a REZ Fund to invest in network infrastructure and establish VicGrid.


Procuring Agency: Australian Energy Market Operator (AEMO)


Nov 2020 The 2020-21 Victorian Budget allocated $682 million toward developing it's Renewable Energy Zones. This includes $540 million over four years to invest in electricity network infrastructure to support the development of Victoria’s REZs.
Feb 2021 The Victorian Government released the Victorian Renewable Energy Zones Development Plan Directions Paper (RDP). The RDP outlined the $540 million investment to establish VicGrid and the Renewable Energy Zone Fund. The Plan identified the locations of the six REZs and a list of nine Stage One transmission projects ready for investment. The RDP also identified 21 potential longer-term Stage Two investments in REZ infrastructure that require further assessment and community and stakeholder consultation.
Aug 2021 The Victorian Government announced it will proceed with six Stage One transmission projects. The Government has commissioned the Australian Energy Market Operator (AEMO) to procure the six projects. A call for Expressions of Interest (EOI) and a tender process will commence for services to strengthen the system across the Murray River, Western Victoria and South West REZs. Separately, A non-contestable Request for Proposal (RFP) process will also commence for three sets of network augmentation projects across the Murray River, South West and Central North REZs.
Aug 2021 The Victorian Government launched the second Victorian Renewable Energy Target (VRET) auction, and issued Requests for Proposals (RFPs) for up 600 megawatts of renewable generation projects across all six Renewable Energy Zones, closing November 2021.
Procurement approach
Unconfirmed |
Victoria |
Media releases