VicGrid recently released its draft 2025 Victorian Transmission Plan (VTP) for public consultation, the first long-term strategic plan for renewable energy zones (REZs) and transmission infrastructure in Victoria developed under the Victorian Transmission Investment Framework.
VicGrid is seeking feedback on the draft VTP, with engagement closing 24 June. Specifically, feedback is being sought on the proposed REZ locations and their size, as well as the overall energy mix and capacity proposed for Victoria. There are seven proposed REZs, which VicGrid have identified as being most suitable to host the new onshore wind and solar generation Victoria will need over the next 15 years. They are the Central Highlands, Central North, Gippsland, North West, South West and Grampians Wimmera and Wimmera Southern Mallee draft proposed REZs.
The REZs depicted in the draft VTP are less expansive than those depicted previously in the Victorian Renewable Energy Zones Development Plan Directions Paper from 2021.
The draft plan relies on the realisation of 9GW offshore wind generation over the next 15 years – a technology that still faces significant challenges to develop in an Australian context. In comparison, capacity targets in some of the seven on-shore REZs appear modest. For example, the Wimmera Southern Mallee REZ is only planned to support an additional 480 MW, despite this region having significant potential for additional wind generation in a context of generally low environmental and community sensitivity. Within the bounds of this REZ, the proposed Warracknabeal Energy Park alone has a proposed nameplate capacity of 1,650 MW. Under the current capacity targets, there runs a risk of transmission under-build to support the REZs.
VicGrid has indicated that it is exploring ways to enable timely generation development and connection within the REZ, while also ensuring a coordinated approach to transmission development. VicGrid has also committed to develop an integrated REZ access and connection approach that provides a clear process for all developers inside and outside the proposed REZs. What this approach looks like remains a key question across industry and one we will be watching closely. We hope that the planning and development of REZs in Victoria is carried out in an orderly manner that provides the certainty needed to encourage investment in generation and storage projects.
Our experience in NSW is that without this thorough planning, a backlog for development activity within the REZ can occur, making development outside of the REZ (ironically) less constrained. There are a number of developers in NSW REZs who went to the REZs because government encouraged them but have missed out on a connection to the proposed transmission lines. These developers have been left with stranded generation projects, looking for alternate connection options. Commenting on the REZ locations, size and capacities is therefore only part of the picture to ensuring the draft VTP is fit for purpose. Equally important will be the implementation of REZ operations to ensure developers can appropriately plan projects.
Our minds have also turned to what the planning and environment approval processes within the REZ will look like, and what controls or limitations may be placed on proposals outside the REZs. The draft VTP doesn’t address these issues which are key for understanding its potential implications for the renewable industry in Victoria.
We would encourage renewable energy and storage developers in Victoria to engage with the consultation process. EMM has experience in this space, having also worked through these issues in NSW. Please reach out if you would like assistance in understanding the implications of the VTP on your particular development pipeline or in preparing a submission on your behalf.
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