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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). VicGrid's work is guided by VTIF, which identifies community engagement and community benefits as core principles.

This new approach features a long-term strategic plan called the Victorian Transmission Plan. 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.

Why do we need these reforms?

As Victoria's energy system changes, the way we plan and develop energy infrastructure needs to change too.

Victoria is putting in place a new planning approach to help address the significant changes to the energy system and network that we are now seeing.

This process will involve Traditional Owners, First Peoples, communities, landholders and regional stakeholders early in the process. Land use, social, cultural and environmental factors will all be taken into account from the very start of the process.

The reforms will also support timely coordination of investment in transmission, generation and storage, to ensure we build the right amount of infrastructure in the right places at the right time.

Transfer of responsibilities for planning Victoria's shared network

On 1 November 2025, responsibility for planning Victoria's transmission network transfers from the Australian Energy Market Operator (AEMO) to VicGrid.  This includes the declared shared network and all associated declared network functions.

This change has been made through legislative reforms put forward by the Victorian Government, which were passed by Parliament in November 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 Test for Transmission (RIT-T) in Victoria

VicGrid will be responsible for coordinating the planning, procurement and development of transmission infrastructure prioritised in the optimal development pathway. The passage of the National Electricity (Victoria) Amendment (VicGrid – Stage 2 Reform) Bill 2025 in the Victorian Parliament allows VicGrid to plan and procure transmission augmentations effectively.

The Optimal Development Pathway includes some projects that are also currently going through a RIT-T process. VicGrid will provide further detail shortly on the proposed approach for these projects. For projects that are not in the Optimal Development Pathway but have a RIT-T in train, they will continue with the RIT-T.

Enquiries regarding recent RIT-T programs in Victoria can be emailed to enquiries@vicgrid.com.au. You can view past RIT-T Reports on the AEMO website.

Victorian Annual Planning Report

The Victorian Annual Planning Report (VAPR) was prepared by AEMO in its prior role up until 1 November 2025 as the Victorian transmission network service provider.

The annual report considers the adequacy of the Victorian transmission network to meet its reliability and security requirements, and identifies development opportunities to address emerging network limitations.

Previous reports are listed below, however if you require a report from a year not listed, you can contact us on enquiries@vicgrid.com.au

2025 VAPR and supporting documents

Previous VAPRs

Page last updated: 10/11/25