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Home Electricity

Victoria locks in six renewable energy zones as Central North plan delayed

by Hayley Ralph
June 2, 2026
in Batteries & Storage, Electricity, News, Projects, Renewable Energy, Solar, Wind
Reading Time: 3 mins read
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Image: Darryl/stock.adobe.com

Image: Darryl/stock.adobe.com

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Victoria has formally declared six renewable energy zones (REZs) to guide the state’s renewable energy rollout, while postponing a decision on the proposed Central North zone pending further consultation.

The move provides greater certainty for renewable energy developers and network planners as the state prepares for the retirement of coal-fired generation over the next decade.

The South West, Central Highlands, Gippsland, Western and North West REZs will join the Gippsland Shoreline REZ as formally declared zones, providing a clear structure for the state’s renewable energy rollout.

VicGrid Chief Executive Alistair Parker said the REZs would improve coordination of solar, wind and battery projects and reduce the need for unnecessary transmission infrastructure.

“Victoria’s coal-fired power stations are due to close over the next 10 years and a significant amount of new renewable energy development is needed to make sure we can meet increasing demand for electricity,” he said.

“Renewable energy zones will ensure better coordination of projects and signal to communities and industry where the development of renewable energy should occur.”

Parker said ministerial declaration of the zones will enable VicGrid to set clearer rules around how projects gain access to the grid. This includes expectations for how they engage with communities and deliver benefits.

The latest round of consultation saw zone boundaries refined, and even a section of the South West zone removed. Zones are set to focus on regions more compatible with renewable energy development, such as dryland broadacre cropping and grazing, with VicGrid attempting to avoid intensive agriculture and irrigated districts.

This formal declaration follows more than two years of consultation with regional communities and stakeholders, landholders, agriculture stakeholders, Traditional Owners and the energy industry.

So what do the REZs look like?

Central Highlands

The Central Highlands REZ spans the Golden Plains, Corangamite and Pyrenees local government areas south-west of Ballarat. This includes existing 500kV and 220kV transmission lines extending through or bordering the zone.

Western

The Western REZ encompassed two zones either side of Horsham – one extending from Minyip in the south-east to Hopetoun in the north, with the other between Stawell and Donald.

These zones have a 220kV transmission line extending through or bordering the area, with the Victoria to New South Wales Interconnector (VNI) West and Western Renewables Link set to be built proximate to this.

Gippsland

The Gippsland REZ bridges from Mirboo North in the west to Sale in the east and includes existing 500kV and 220kV transmission lines, Marinus Link that connects with north-east Tasmania and the Latrobe Valley in Victoria, and a planned offshore wind transmission line that connects with the coastal Gippsland Shoreline REZ.

South West

The South West REZ has been trimmed from two zones to one zone, which sits south-east of Hamilton between Macarthur and Darlington. An existing 550kV transmission line extends through the southern section of the South West REZ. This zone includes the town of Mortlake.

North West

The North West REZ is located between Charlton in the south and Swan Hill in the north and includes an existing 220kV transmission line as well as the proposed VNI West.

Gippsland Shoreline

The Gippsland Shoreline zone is located near Woodside, Giffard and Seaspray in south Gippsland. It sits within the boundaries of the Gunaikurnai Land and Waters Aboriginal Corporation and the Wellington Shire local government area.

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