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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 South West Renewable Energy Zone?
The South West Renewable Energy Zone is one of five declared zones in Victoria.
The 2025 Victorian Transmission Plan proposed a renewable energy zone with two sections in south west Victoria, the one outlined above, and a second section between Casterton and Balmoral (known to the community as the Dundas Tablelands).
The Minister for Energy and Resources has formally declared the South West Renewable Energy Zone which is located south-east of Hamilton, between Macarthur and Darlington.
When deciding not to declare the area known as the Dundas Tablelands, the Minister acknowledged the need to understand in more detail and consult further on concerns raised by local communities regarding environmental and biodiversity values, land use constraints, and potential complexities for projects.
The declared South West Renewable Energy Zone includes parts of the Moyne local government area. Small parts of the zone also sit within the Southern Grampians. The zone is within the Registered Aboriginal Party boundaries of Eastern Marr Aboriginal Corporation and Gunditj Mirring Traditional Owners Aboriginal Corporation.
As a result of the renewable energy zone declaration consultation process, the Dundas Tablelands area was removed from the proposed South West Renewable Energy Zone. Find out more in the Dundas Tablelands factsheet below.
View the REZ Orders and Statement of Reasons from the Minister for Energy and Resources at DEECA Energy.
To learn more, read the South West Renewable Energy Zone factsheet:
Map of the South West Renewable Energy Zone
Visit our online interactive map to see the renewable energy zones in more detail.
How did feedback shape the South West Renewable Energy Zone?
To shape the South West Renewable Energy Zone, we undertook engagement as part of the 2025 Victorian Transmission Plan development.
This commenced in 2023 and was 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:
- Removed the northern section of the zones in response to concerns about limited engagement opportunities, environmental and biodiversity values, land use constraints and potential complexities for projects
- Avoided the habitat of species such as the Brolga, especially in areas with high concentrations of wetlands
- Avoided significant landscapes and landforms, including Budj Bim World Heritage Site, the Grampians (Gariwerd) National Park, Lake Corangamite, Great Otway National Park and coastal areas.
- Avoided agricultural land, including concentrated dairy farming areas and areas with good access to groundwater
- Defined the boundaries using a standard approach to align them to existing administrative and planning features– such as roads and local government boundaries in the southern section
- Detailed assessment of concerns relating to environment, agricultural, bushfire and social impacts will occur at the project level through consultation, planning, design, environmental assessment and approvals processes.
Read a summary report of engagement activities, timing and the outcomes in the What we heard – REZ consultation report below.
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 South West 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: 23/06/26
