The Victorian Government is proposing to deliver six renewable energy zones (REZs), comprising:
- Central Highlands (4 GW hosting capacity)
- Central North (still to be determined)
- Gippsland (5.2 GW hosting capacity)
- North West (1.7 GW hosting capacity)
- South West (3.6 GW hosting capacity), and
- Western (2.4 GW hosting capacity).
A separate REZ is proposed for Gippsland's shoreline to connect offshore wind generation projects. The REZ has an hosting capacity of 2 GW.
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. |
|
Procurement
| Procuring Agency: | VicGrid |
PROJECT HISTORY
| 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. |
| Nov 2023 | VicGrid opened the Community Renewable Energy Planning Survey seeking feedback to inform a state-wide Strategic Land Use Assessment. This will provide the foundation of the planning and development of Victoria's REZs, including identification of priority areas. |
| Jul 2024 | The draft Victorian Transmission Plan Guidelines were released for feedback, closing 25 August, as well as the renewable energy zone study area, closing 30 September. |
| May 2025 | VicGrid released the draft 2025 Victorian Transmission Plan for public consultation, setting out its proposed approach to deliver renewable energy zones (REZs) and transmission to 2040, including seven proposed REZs; a separate, proposed REZ on Gippsland’s shoreline to connect offshore wind generation projects; and seven programs of new transmission. |
| Aug 2025 | VicGrid released the final 2025 Victorian Transmission Plan. The final VTP sets out six proposed Renewable Energy Zones (REZ), a proposed Gippsland Shoreline REZ, and an optimal development pathway (ODP) for transmission. The ODP includes seven proposed transmission programs, comprising four new projects and three augmentations, to enable the development of the REZs and offshore wind. |
| Nov 2025 | VicGrid issued Draft Orders for five proposed renewable energy zones (REZs) and one proposed shoreline REZ for public consultation. The Draft Orders outline the intended transmission hosting capacity and transmission project areas of interest for each REZ, as well as providing an indicative map. |
Sector
Energy
Procurement approach
Unconfirmed |
Location
Victoria |
Resources