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What is a renewable energy zone?
Renewable energy zones are areas identified as the best places to host wind, solar and battery storage projects and are central to our transition away from coal to renewable energy.
Renewable energy zones will:
- help coordinate renewable energy projects and reduce the need for unnecessary transmission infrastructure
- enable VicGrid to set clearer rules around how projects gain access to the grid, including expectations for how developers engage with communities
- provide more certainty about how and where renewable energy projects are developed
- unlock new economic benefits for regional communities and Traditional Owners
Where is the Central Highlands Renewable Energy Zone?
The Central Highlands Renewable Energy Zone is one of five declared zones in Victoria.
A renewable energy zone was proposed west and south of Ballarat as part of the 2025 Victorian Transmission Plan.
The declared Central Highlands Renewable Energy Zone covers parts of the Golden Plains, Corangamite and Pyrenees local government areas. Small sections of the zone also sit within Moorabool and Colac Otway local government areas.
The zone is within the Registered Aboriginal Party boundaries of Wadawurrung Traditional Owners Aboriginal Corporation and Eastern Maar Aboriginal Corporation.
When identifying this zone, we have carefully considered community concerns about the impacts of cumulative development. This is balanced with the pressing need to position renewable energy zones with access to high-quality wind and solar energy and near existing transmission lines.
View the REZ Orders and Statement of Reasons from the Minister for Energy and Resources at DEECA Energy.
To find out more, read the Central Highlands Renewable Energy Zone factsheet.
Map of the Central Highlands Renewable Energy Zone
Visit our online interactive map to see the renewable energy zones in more detail.
How did feedback shape the Central Highlands Renewable Energy Zone?
Community and industry views have been crucial to the design of the 2025 Victorian Transmission Plan.
To shape the Central Highlands Renewable Energy Zone we undertook engagement as part of the 2025 Victorian Transmission plan development, commencing in 2023 and delivered across multiple consultation phases.
Further engagement was then carried out as part of the renewable energy zone declaration process, between November 2025 and March 2026.
What we did in response to feedback:
- Sought to avoid agricultural land, including horticulture production around Ballarat and Ballan.
- Sought to protect areas of significant environmental value, especially areas with a high concentration of wetlands
- Located the proposed renewable energy zone close to the existing transmission infrastructure to coordinate connections and reduce the overdevelopment of transmission lines
- Removed the area around Mount Bolton and Mount Beckworth, and added a small section to the south of the proposed zone instead
- Defined the boundaries using a standard approach, aligning them to existing administrative and planning features – such as roads and local government boundaries
- Made no changes in response to requests for boundaries to be adjusted for specific projects or landholdings
You can read a summary report of engagement activities, timing and the outcomes in the What we heard – REZ consultation report.
What will it be like living in a renewable energy zone?
If you live in or near a renewable energy zone, over time you will see more development of renewable energy generation and storage such as wind farms, solar farms and batteries. It is important to note that only a small proportion of land within the zone will be used for these projects.
VicGrid will work with developers to coordinate new development and associated transmission to minimise impacts on landscapes and the environment.
All proposed projects will continue to be subject to existing planning and environmental controls, including approval processes under the Planning and Environment Act 1987 and Environment Effects Act 1978.
How will decisions about new renewable energy projects be made in the Central Highland Renewable Energy Zone?
The Victorian Government is setting new rules to manage how renewable energy projects, such as wind and solar farms, gain access to the state’s transmission network.
Under the current open access regime, developers can connect their projects almost anywhere on the transmission network, as long as they meet technical and environmental planning requirements.
Under the new approach, known as the Victorian Access Regime, developers will apply for access and VicGrid will oversee a competitive process to decide which projects can connect within each zone.
Each zone will have a set limit on how much new renewable energy can be connected. We are proposing to set access limits that reflect how much electricity the network can carry at a given time, based on current infrastructure and planned upgrades.
In determining how much of the access limit is allocated, we will consider:
- the amount of electricity Victoria needs to generate to meet increasing demand
- the size of the zone and the density of projects
- whether developers are meeting expectations for landholder, community and Traditional Owner engagement and adding social value through initiatives and economic development.
This process will ensure Victoria produces enough energy to meet demand, while minimising the impact on communities, Traditional Owners, agriculture and the environment.
Find more information including frequently asked questions on our renewable energy zones page.
Page last updated: 02/06/26
