Community benefits

About the Renewable Energy Zone (REZ) Community Benefits Plan

The Victorian Government has heard clearly from regional communities that the benefits of the energy transition need to be shared fairly, especially with those communities hosting new infrastructure.

Government has listened and after consultation with communities and stakeholders, has come up with a new approach to delivering community benefits.

This new approach is our draft Renewable Energy Zone (REZ) Community Benefits Plan that proposes the creation of new benefits for landholders, community, significantly impacted neighbours and Traditional Owners.

A new approach to community benefits video

REZ Community Energy Funds

REZ Community Energy Funds will fund projects that improve energy outcomes, or create benefits from the energy transition, in regions hosting renewable energy zones and new transmission infrastructure.

A REZ Community Energy Fund will be created for each region hosting a zone.

These funds will support regionally significant projects and initiatives that:

• improve energy supply, reliability, efficiency and affordability for businesses, communities and households; or
• create benefits from the energy transition by building supply chains, creating jobs, promoting research and innovation or attracting investment within the renewable energy sector.

Opportunities to invest directly into communities

Local decision making that responds to local needs and priorities will be a cornerstone of these funds. Decisions about investments will be made in consultation with regional community reference groups with broad community and industry representation.

The aim is to ensure communities benefit in a meaningful and lasting way based on their vision of the energy priorities for their region.

Who pays for the REZ Community Energy Funds?

The REZ Community Energy Funds will be paid for by private project developers building major renewable energy infrastructure within each renewable energy zone, including:

• transmission companies
• generation project developers
• storage and hybrid project developers.

The funds are in addition to existing compensation arrangements, and developer-led benefits provided by private project developers.

Landholder payments

Landholder benefits are recognition by the Victorian Government of the important role host landholders are playing in Victoria's transition to renewable energy.

Landholders who host new electricity transmission infrastructure will receive benefits of $200,000 per kilometre of typical easement area of hosted transmission, paid in annual instalments of $8,000 a year over 25 years, indexed to inflation.

These landholder benefits will be separate to the REZ Community Energy Fund and are in addition to existing compensation arrangements covered under the Land Acquisition and Compensation Act 1986 and the Traditional Owner Settlement Act 2010 (Vic).

These new benefits were announced by the Victorian Government in 2023. The funds will not replace activities funded through existing sources and programs.

Partnering with Traditional Owners

The Victorian Government will work in partnership with First Peoples to co-design benefits for Traditional Owners hosting renewable energy zones and transmission corridors.

The Victorian Government is committed to Pupangarli Marnmarnepu 'Owning Our Future' Aboriginal Self-Determination Reform Strategy.

We will partner with Traditional Owners in regions hosting renewable energy zones to identify key considerations and concerns, and benefits and opportunities. This will support Traditional Owners to protect Country, maintain spiritual and cultural heritage and practices, and pursue aspirations for economic development.

The co-design process aims to go beyond inclusion; to give First Peoples control over how benefits are delivered to ensure economic empowerment and self-determination.

Significantly impacted neighbours

Significantly impacted neighbour benefits are intended to recognise that new or upgraded transmission infrastructure can affect the visual amenity of neighbouring properties. Sometimes, measures such as screening or vegetation cannot adequately address these impacts.

Payments to significantly impacted neighbours will be made directly by transmission companies to landowners based on guidance developed by VicGrid. The proposed guidance would set expectations and provide consistency across the state.

It’s proposed transmission companies make a one-off maximum payment of up to $40,000 to eligible landholders, with the amount scaled in proportion to the distance of the land’s dwelling or sensitive land use to the nearest new transmission infrastructure.

It's proposed these benefits would be made available along the full length of infrastructure, both in and out of renewable energy zones, as part of project contracts.

Regional economic benefits

The development of renewable energy zones and transmission infrastructure will create significant economic opportunities for local workers, businesses and industries. This includes creating jobs, attracting investment and supporting innovation.

The development of zones will help channel investment into regional communities, and transmission infrastructure procured by the state will drive regional economic development through mandatory government policies on local jobs and social procurement.

New reforms to benefit communities

Additional reforms under the Victorian Access Regime will detail what developers must do to gain access to the grid, including how they will be expected to engage with and deliver benefits to landholders, communities and Traditional Owners.

Draft Community Engagement and Social Value Guidelines for Renewable Energy and Transmission Projects will also set out expectations for how developers engage with communities and landholders and recognise the rights of Traditional Owners, and how they will deliver social value and economic benefits.

These reforms are being put to community for feedback, to learn more visit the Engage Victoria website.

Next steps

The REZ Community Benefits Plan will be released in 2026.

To learn about who we engaged with community to help with the development of the REZ Community Benefits Plan, visit the Engage Victoria website.

Page last updated: 30/10/25