Certainty delivered with declaration of Victoria’s six renewable energy zones

Five onshore renewable energy zones (REZ), plus one offshore, have been formally declared by the Victorian government, delivering certainty for solar, battery and wind projects as well as reducing the need for unnecessary transmission infrastructure.

The South West, Central Highlands, Gippsland, Western and North West, and offshore Gippsland Shoreline REZ pre-empt Victoria’s coal-fired power station closures over the next decade, and pave the way for investment and development of renewable energy projects.

Two years in the making, the declaration follows extensive consultation statewide with stakeholders, including communities, Traditional Owners, and farmers.

VicGrid Chief Executive Alistair Parker said a significant amount of new renewable energy development is needed to make sure the state can meet increasing demand for electricity.

“Renewable energy zones will ensure better coordination of projects and signal to communities and industry where the development of renewable energy should occur,” Parker said.

He added, the declaration of the zones would enable VicGrid to set clearer rules around how projects gain access to the grid, including expectations for how they engage with communities and deliver benefits.

The 2025 Victorian Transmission Plan proposed six onshore REZs, along with the Gippsland Shoreline REZ, which will host underground cables connecting offshore wind energy to the grid.

A seventh onshore REZ remains under review for the Central North zone.

VicGrid also released for consultation the draft 2026 Victorian Transmission Plan Guidelines, which will take a 25-year view of the state’s transmission and renewable energy generation needs.