VicGrid’s Draft 2025 Victorian Transmission Plan (VTP) sets out a 15-year strategic framework to coordinate Renewable Energy Zones (REZs) and targeted transmission investments across Victoria.

The VTP proposes seven onshore REZs, including Central Highlands, Central North, Gippsland, North West, South West, Grampians Wimmera, and Wimmera Southern Mallee, plus a Gippsland Shoreline REZ to support offshore wind. These zones were identified through a strategic land use assessment that prioritises renewable resource potential, grid feasibility, and early engagement with landholders, Traditional Owners, and regional communities.

To meet Victoria’s future energy needs, the plan supports the integration of:

• 5.8 GW of onshore wind.
• 2.7 GW of solar.
• 3.4 GW of storage.
• Up to 9 GW of offshore wind by 2040.

Seven major transmission programs are proposed to enable this transition, including:

• 380 km of new lines and 430 km of upgrades.
• A new 500 kV link from Sydenham to Tarrone.
• Grid strengthening in Melbourne’s west and the Latrobe Valley.
• A looped system to integrate offshore wind in Gippsland.

These upgrades are sequenced to align with the planned closure of coal-fired generators, maintain system reliability, and avoid over-investment.

The VTP introduces reforms to guide responsible development:

• Declared REZs will offer preferred network access and reduced curtailment risk.
• Projects outside REZs will require a Grid Impact Assessment.
• A new benefits framework including AU$8,000/km/year payments to landholders, dedicated Traditional Owner benefits and new community energy funds.

Stakeholders may propose alternative REZ locations during consultation, where justified by project need, land use considerations, or system benefit.

A key feature of the VTP is its commitment to early and meaningful engagement, ensuring that planning and investment decisions are informed by those directly affected, strengthening project delivery and long-term social licence.

The VTP also reflects a broader shift in energy planning. The Clean Energy Council has reaffirmed that firmed renewables, supported by transmission and storage, remain the lowest-cost path to a reliable energy system. Gas will retain a limited role as a backup technology, expected to operate at low capacity factors (~7%) by 2050, largely serving as insurance against rare demand peaks.

Dentons is advising clients on the implications of the 2025 VTP - from project siting and community engagement to land access, approvals, and transmission interface. If you're developing, supplying, or investing in VTP-aligned projects, we welcome the opportunity to support your strategy.

Learn more: Draft VTP - Developing the 2025 Victorian Transmission Plan | Engage Victoria