Gippsland to play key role in getting Victoria to 65% renewable energy within five years
To reach its targets, the government has pinpointed seven Renewable Energy Zones.
Jacob Wallace
May 20, 2025
The next step in transforming a section of Gippsland coast into a renewable energy powerhouse has been taken.
VicGrid, the government agency responsible for planning and developing renewable energy and new transmission lines in the state, has released its draft plan proposing renewable hub and transmission line development locations in Gippsland.
So what does VicGrid want to build in Gippsland? And where? The Gippsland Monitor has been over the report to give you the lowdown.
What is specifically planned in the VicGrid draft report?
In the process of transitioning away from fossil fuels, the State Government's goal is to have 65 percent of Victoria’s energy come from renewables by 2030 and 95 percent by 2035.
In order to reach these targets the government has indicated seven Renewable Energy Zones, and new transmission lines or upgrades to old transmission lines.
What is a Renewable Energy Zone?
A Renewable Energy Zone is an area identified by the government to host either solar, wind, hydro or battery storage facilities as part of the continued transition away from fossil fuels.
VicGrid has proposed seven Renewable Energy Zones across Victoria. These include zones in the Central Highlands, Central North, Gippsland, Grampians Wimmera and Wimmera Southern Mallee.
The REZs will cover less than seven percent of Victoria’s land area, and within those zones only about 11 percent of the land will be needed to host wind and solar projects, VicGrid said. It estimated this will equate to less than one percent of the total land area of Victoria.
There is only one proposed REZ in Gippsland, running from Morwell to Sale.
What’s proposed in Gippsland?
The largest renewable project in Victoria is Gippsland’s offshore wind farms. According to the Victorian Government the 12 proposed offshore wind farms will generate enough energy to power 1.5 million homes (2 gigawatts) by 2032.
The government is aiming to double this amount to 4GW by 2035 and 9GW by 2040.
To transport the power generated by these wind farms to the Victorian power grid, new transmission lines will have to be built and a connection hub constructed close to the coast.
The proposed developments for Gippsland in the VicGrid draft report include:
An REZ between Morwell and Sale;
A connection hub for power cables from offshore wind farms around Giffard;
A Gippsland shoreline REZ to give offshore wind developers a defined area to build underground cables to the connection hub near Giffard.
A study area to consider where to build transmission lines from the connection hub at Giffard to existing transmission lines at Hazelwood and Yallourn.
Plans to upgrade the transmission lines between Hazelwood and Yallourn.
Where will the transmission lines go?
Draft proposal for Renewable Energy Zone and new transmission line locations by VicGrid.
The exact locations for new transmission lines have not been determined. The VicGrid draft report states these areas will be defined by 2028.
“We will work to narrow the study area to a corridor, then a route, then an easement.”
Community consultation for this stage of the proposal is ongoing.
“The first step in the planning process will be to consult with communities, landholders, Traditional Owners, First Peoples, and industry, and carry out technical investigations, to help determine a study area for the new transmission,” VicGrid said in the report.
Can I give feedback to VicGrid?
VicGrid wants feedback from local industry, landholders and community members. This can be done via engage.vic.gov.au/victransmissionplan or by calling 1800 418 341. The deadline for submissions and feedback is Tuesday June 24, 2025.
