Victoria’s transition to renewable energy has taken an important step forward today with the declaration of renewable energy zones.
The Victorian Government has formally declared 5 onshore renewable energy zones - South West, Central Highlands, Gippsland, Western and North West - as well as the Gippsland Shoreline Renewable Energy Zone, which will host underground cables connecting offshore wind energy to the grid.
VicGrid Chief Executive Alistair Parker said he welcomed the government’s decision to declare Victoria’s first renewable energy zones, which would improve coordination of solar, wind and battery projects and reduce the need for unnecessary transmission infrastructure.
'Victoria’s coal-fired power stations are due to close over the next 10 years and a significant amount of new renewable energy development is needed to make sure we can meet increasing demand for electricity,' he said.
'Renewable energy zones will ensure better coordination of projects and signal to communities and industry where the development of renewable energy should occur.'
'The Minister’s declaration of zones will 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 zones have been designed to make the most of existing infrastructure and to minimise impacts for regional communities, the environment, landholders and key regional industries like agriculture.
The 2025 Victorian Transmission Plan proposed 6 onshore renewable energy zones, along with a Gippsland shoreline zone. The Victorian Government has now declared 5 of these zones, as well as the shoreline zone. Consultation will continue on the sixth onshore zone, The Central North zone.
The declared renewable energy zones follow a statewide strategic land use assessment and more than two years of consultation with regional communities and stakeholders, landholders, agriculture stakeholders, Traditional Owners and the energy industry.
The most recent round of consultation resulted in zone boundaries being refined and in the removal of some areas proposed for renewable energy zones. This includes a section of the South West Zone which has not been declared in recognition that more work is required on its suitability.
Consultation with farmers and their representatives helped VicGrid focus zones on areas where we were told agricultural practices were more compatible with renewable development, like dryland broadacre cropping and grazing, and to avoid wherever possible intensive agriculture and irrigated districts.
Being in a renewable energy zone does not change the zoning of properties. Planning laws and approvals remain the same and landholders have the choice of whether or not they host solar, wind or battery projects.
Only a small proportion of the land in each zone will be needed for renewable development, with much less than one per cent of Victoria's total land area required for physical infrastructure such as wind turbines, solar panels and access roads.
VicGrid has today also released for consultation draft 2026 Victorian Transmission Plan guidelines, setting out the proposed approach that will be taken to developing the next Victorian Transmission Plan in 2027, which will take a 25-year view of the state’s transmission and renewable energy generation needs.
More information
Page last updated: 04/06/26