Project

Victorian Renewable Energy Zones

PROJECT STATUS
Announced
Victorian Renewable Energy Zones

The Victorian Government is proposing to deliver seven renewable energy zones (REZs), comprising:

  • Central Highlands, comprising between 1,820 megawatts (MW) and 2,070 MW of wind capacity, and 125 MW of solar capacity 
  • Central North, comprising between 60 MW and 100 MW of wind capacity 
  • Gippsland, comprising between 320 MW and 480 MW of wind capacity 
  • North West, comprising between 320 MW and 480 MW of wind capacity, and between 930 MW and 1,390 MW of solar capacity 
  • South West, comprising between 1,280 MW and 1,920 MW of wind capacity 
  • Grampians Wimmera, comprising between 320 MW and 480 MW of wind capacity, and 
  • Wimmera Southern Mallee, comprising between 320 MW and 480 MW of wind capacity. 

A separate REZ is proposed for Gippsland's shoreline to connect offshore wind generation projects. 

Key Dates

Feb 2021 Project Announcement
May 2025 Publication of draft 2025 Victorian Transmission Plan
Dec 2025 Expected publication of final 2025 Victorian Transmission Plan

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: Australian Energy Market Operator (AEMO)

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.