Victoria has proposed new REZs include 5 onshore zones, while the sole shoreline zone will be dedicated to offshore wind development
These zones cover 7.9% of land, though less than 1% will ultimately be needed for renewable project deployment, says VicGrid
Developers must meet government expectations on community engagement, social value, and local economic benefits.
The Australian state of Victoria plans to establish 6 new renewable energy zones (REZ), including a ‘shoreline’ REZ, as it undertakes its energy transition by replacing coal with solar and wind backed by storage and transmission infrastructure. Victoria’s Ministry for Energy and Resources is now seeking public consultation on the drafts.
Among those proposed, Western, Central Highlands, Gippsland, North West, and South West are the 5 onshore REZs. These are to be located in regions most suitable for new solar, wind, and battery storage projects, with access to the transmission network. The Gippsland Shoreline REZ is reserved exclusively for offshore wind farms.
Together, these cover 7.9% of the state’s land area, but it says only a fraction of this will be needed for development, less than 1% of the state’s land area.
Interested developers will need to ensure that their projects meet government expectations for community engagement and deliver social value and economic benefits.
The government explains that the REZs show developers and communities where future development should be focused; however, the ultimate decision to host a wind, solar, or battery project remains with the landholder.
“Renewable energy zones will play a key role in helping us coordinate the energy transition and ensure that local communities see real benefits and are treated with respect,” said VicGrid Chief Executive Alistair Parker.
VicGrid is Victoria’s transmission planning body that is also responsible for planning and developing REZs in the state.
The draft order includes a map of the zone, transmission projects that will enable the zone to come up, and the intended capacity that the transmission network could support in the zone.
According to VicGrid, the process to define the REZs began in early 2024 with a statewide strategic land-use assessment that eventually narrowed down to the 6 REZs.
Feedback to the proposed draft, available on VicGrid’s website, will help the state formally determine and declare the REZs. The last date for submissions is February 22, 2026. Final REZ orders will be announced in March 2026.
In addition to the 6 REZs, VicGrid also refers to the Central North REZ that was proposed in the 2025 Victorian Transmission Plan. The detailed draft order will be released in early 2026.
Victoria aims to unlock 25 GW of new renewable energy and storage capacity by 2035, with an additional 7.6 GW rooftop solar capacity as part of its plan to achieve a 65% share of renewable energy in its power mix by 2030. It will scale it up to 95% by 2035 when it shuts down all of its aging coal-fired power plants (see Australia’s Victoria Targets 25 GW Clean Energy Capacity By 2035).
