Future renewable energy zones still on the table after Victoria scraps proposed REZ

The Victorian government’s renewable energy zone coordinator Vic Grid has announced the Central North Renewable Energy Zone (REZ) will not proceed as a result of technical assesments finding solar generation developments already operating or proposed for the the region have limited capacity on the grid for new developments.

The Central North REZ covers parts of Campaspe, Greater Shepparton, Benalla and Greater Bendigo, where existing solar farms near Shepparton include the 128 MW Numurkah solar farm, 20 kilometres northeast of Shepparton, the 93 MW Girgarre solar farm, 50 km west, and the 250 MW Goorambat East solar farm.

“This means it is likely most remaining capacity on the grid would be allocated before the new access regime associated with renewable energy zones is introduced,” Vic Grid said in its statement.

Vic Grid also confirmed an absense of a Central North REZ did not rule out that other areas in the broader region wouldn’t be assessed for potential future renewable energy zones through future Victorian Transmission Plan processes.

Five onshore renewable energy zones in Victoria have been declared to date and include the 4 GW hosting capacity Central Highlands REZ, 5.2 GW hc Gippsland, 1.7 GW North West, 3.6 GW South West and 2.4 GW Western.

The Clean Energy Council (CEC) however warned the decision creates uncertainty over how Victoria will replace its ageing coal-fired power stations, including Yallourn scheduled to close in 2028.

CEC Chief Executive Jackie Trad said Victoria needed a clear and stable plan for its future power supply regardless of who governs.

“So the obvious question from [the] decision is: where will that power come from?,” Trad asked.

“Victoria cannot afford uncertainty over its future power supply. Projects take years to plan, finance, approve and build, and investors need confidence about where Victoria is going.”

“Victorian families and businesses need confidence the power will be there when they need it, and investors need the certainty to spend billions of dollars building it.

“We need genuine community consultation and partnerships to ensure renewable energy projects are set up for success. Local insights need to be a foundational part of project planning, so we don’t end up with cancellations,” Trad said.

Community pushback

Community members and regional stakeholders rallied against the proposed REZ raising concerns around biodiversity, flooding and the significance of agricultural land in some areas of the zone.

Vic Grid said any consideration of any new zones would be the subject of extensive consultation with regional communities, stakeholders and Traditional Owners.

“As is always the case, landholders have the right to choose whether they want to host solar, wind and battery developments,” Vic Grid said.