On this page:
A new approach to planning our grid
As the state's ageing coal-fired power stations close in the coming decades, they are being replaced with renewables. Our electricity system must also change to carry energy from where it is generated to where it is needed.
Shifting to renewable energy will deliver affordable, reliable and secure electricity. It will also help us deal with climate change by reducing our emissions.
To achieve these goals, the Victorian Government, through VicGrid, is putting in place a new approach to planning renewable energy zones and transmission infrastructure through delivery of the Victorian Transmission Investment Framework (VTIF), which identifies community engagement and community benefits as core principles.
Victorian Transmission Plan
This new approach features a long-term strategic plan called the Victorian Transmission Plan (VTP). It supports early and meaningful engagement with landholders and local communities, partnerships with Traditional Owners, First Peoples, fairer community benefit arrangements and certainty for investors.
For details on how we are funding the planning of renewable energy zones, visit our fees and charges page.
The Victorian Transmission Investment Framework
- A long-term strategic plan for Victorian transmission and renewable energy zone development called the Victorian Transmission Plan (VTP).
- A commitment to early and meaningful engagement with landholders and local communities and partnerships with First Peoples.
- A new approach to sharing the benefits of the energy transition more fairly featuring new community energy funds, landholder payments, neighbour payments and benefits for Traditional Owners.
- A new approach to managing how renewable generation projects access the shared network that improves coordination, reduces impacts and gives investors certainty.
- A new approach to specifying and procuring projects to meet Victoria's transmission needs, ensuring timely delivery and value for money.
- A Victorian transmission planning objective that incorporates environmental objectives and the state's needs in response to the transition to renewable energy.
The new framework has been developed following public consultation in 2022, which demonstrated broad support for change.
Transfer of responsibilities for planning Victoria's shared network
On 1 November 2025, responsibility for planning Victoria's transmission network – referred to as declared network functions – transferred from the Australian Energy Market Operator (AEMO) to VicGrid.
This change has been made through legislative reforms put forward by the Victorian Government, which were passed by Parliament in September 2025.
The reforms are part of the Victorian Transmission Investment Framework, which is reshaping how transmission is planned and developed in Victoria, as it transitions to renewable energy.
The transfer has been implemented in stages, in close consultation with AEMO, to ensure an orderly transfer of responsibilities.
How will the new framework apply to transmission projects currently underway?
Where possible, the Victorian Government will seek to apply the Victorian Transmission Investment Framework reforms to existing projects. For example, the Renewable Energy Zone Community Benefits Plan.
Progress of regulatory investment tests for transmission (RIT-T) in Victoria
VicGrid is responsible for coordinating the planning, procurement and development of transmission infrastructure in Victoria. The passage of the National Electricity (Victoria) Amendment (VicGrid – Stage 2 Reform) Bill 2025 allows VicGrid to plan and procure transmission augmentations effectively. Responsibility for conducting regulatory investment tests for augmenting the Victorian declared shared network now sits with VicGrid.
Visit the regulatory investment tests for transmission page for further details on in-progress and completed RIT-Ts.
Limits advice
VicGrid is responsible for the calculation of the limit equations as a part of its transmission network service provider role. These limit equations describe the capability of the power system under both system normal and outage conditions.
Page last updated: 29/06/26
