In our recent article, ‘Victoria’s Renewable Grid Future’, we outlined VicGrid’s vision for transforming Victoria’s electricity network. With the Draft 2025 Victorian Transmission Plan (VTP) now open for consultation, attention shifts to how transmission infrastructure will be delivered and procured, and the strategic actions stakeholders should consider.

VicGrid’s Role

VicGrid’s functions, under the National Electricity (Victoria) Act 2005 (Vic), include coordinating all aspects of transmission delivery under the Victorian Transmission Investment Framework (VTIF), encompassing land access, development, corridor selection, planning and environmental approvals, and procurement. This centralised role is intended to support timely project delivery, minimise disruption and enhance coordination.

Projects must still obtain approvals in accordance with the Planning and Environment Act 1987 (Vic) and the Environment Effects Act 1978 (Vic). The VTP process is designed to assist these statutory approval processes by incorporating early-stage community consultation and environmental considerations. In addition, the new Development Facilitation Program and reforms to the Environment Effects Statement (EES) process are intended to expedite assessments for priority projects, including those supporting renewable energy.

Procurement Framework

The final VTP, due in Q4 2025, will include a detailed procurement framework for the seven priority transmission programs. VicGrid will determine on a project-by-project basis whether procurement is contestable or non-contestable, based on factors such as integration with existing assets, market readiness, and delivery timeframes.

By comparison:

• New South Wales has adopted a fully contestable procurement model under the Electricity Infrastructure Investment Act 2020 (NSW), as part of its Electricity Infrastructure Roadmap. AEMO Services, runs competitive tenders for generation, storage, and firming projects, while EnergyCo leads the planning and coordination of transmission infrastructure
• Queensland follows a state-led model under the Energy (Renewable Transformation and Jobs) Act 2024 (Qld). Powerlink plans and delivers most transmission projects directly. Projects are generally non-contestable.

Victoria’s model sits between these approaches enabling market participation, where appropriate, while retaining coordinated, State-led planning and delivery oversight.

Development and Delivery Process

Each priority project in the VTP will progress to detailed project solution design, including further optioneering and assessment of both network and non-network alternatives, such as battery energy storage systems (BESS). Projects will be subject to a business case, which may identify a preferred option or recommend a technology-neutral procurement process (one that invites competitive proposals from a range of potential solutions, rather than prescribing a specific technology).

Following business case approval, procurement will proceed with independent oversight. No separate economic assessment is required, as projects have already undergone cost-benefit and robustness testing through the VTP.

Timelines

• 24 June 2025 - Draft VTP consultation closes
• Q4 2025 - Final VTP and procurement framework released
• Q4 2025-2026 - VicGrid expect to commence detailed planning and early procurement activities for projects under priority programs (opportunities for consultation as projects are planned and developed)
• 2028 - Proposed completion of the Western Victoria Reinforcement Program -
• 2028-2029 - Proposed completion of the Eastern Victoria Reinforcement Program
• 2033 - Proposed completion of the South West Expansion Program
• 2033-2038 - Proposed completion of the Gippsland Offshore Wind Transmission - Stage 2 Program
• 2034-2035 - Proposed completion of the Latrobe Valley Strengthening Program
• 2035 - Proposed completion of the North West Strengthening Program
• 2038 - Proposed completion of the Offshore Wind Upgrade Program
• By 2040 - All seven infrastructure programs completed

Stakeholder Engagement

Stakeholders, including renewable energy developers, transmission proponents, OEMs, contractors, investors, and community representatives, should engage now as corridor options are refined across regions such as Gippsland, South West Victoria, and metropolitan Melbourne. Early involvement can influence route alignment, land access, and grid connection opportunities.

Participants must comply with VicGrid’s evolving standards relating to community engagement, Traditional Owner participation, and procurement processes, including legal obligations under the Traditional Owner Settlement Act 2010 (Vic) and the Native Title Act 1993 (Cth).

Dentons continues to advise clients across the renewable energy and transmission sectors on all aspects of the VTP and similar frameworks nationwide, including procurement, compliance, planning, project siting, land access, and regulatory strategy. Strategic engagement and early action are critical to navigating regulatory requirements, influencing project outcomes, and securing opportunities in Victoria’s energy transition and the broader national clean energy agenda.

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