Have you seen VicGrid’s proposed renewable energy zone study area?

The identification of areas for further investigation for renewable energy generation projects is the first step in VicGrid’s methodology to create a long-term Victorian Transmission Plan.

The first plan is due in 2025 and will consider Victoria’s energy needs over the next 15 years. As part of VicGrid’s methodology for development of the Plan, they are proposing to use the broad geographical areas identified in the study area to inform further investigation into where investment in transmission infrastructure should be channelled. The five step methodology for development of the long-term plan includes:

  1. Identifying areas that are most suitable for renewable energy generation. Beginning with the broad study area and narrowing it down to areas for investigation.
  2. Developing the generation resource plan and candidate areas. Using energy market modelling to determine which renewable energy technologies to build, how much generation capacity to build and where and when this capacity should be built.
  3. Identifying what upgrades the transmission network needs by considering the capacity of the current transmission infrastructure and its ability to service the generation capacity that is planned for.
  4. Propose and assess a sequence of transmission network improvements. Preparing a draft optimal pathway for consultation with communities and industry as part of the draft Victorian Transmission Plan due in early 2025.
  5. Finalise what projects will be delivered over the next 15 years under the optimal development pathway.

 

Ultimately, it is proposed that the areas identified for investment through the development of the Victorian Transmission Plan will be declared by the Minister for Energy as Renewable Energy Zones (REZs). This declaration will include a map showing the boundaries of the REZ, the preferred transmission corridor, the intended hosting capacity of the REZ and engagement requirements and expectations of project proponents during project delivery.

Generators seeking to connect to the transmission network from outside a declared REZ will be subject to a grid impact assessment to ensure proposed projects do not negatively impact on investment in the REZ.

Importantly, these REZ areas are different to the six Renewable Energy Zones previously identified by AEMO and published in the Victorian Governments 2021 Renewable Energy Zones Development Plan.

While it is not surprising to see the prioritisation of Victoria’s west in VicGrid’s first proposed study area, we note that the ‘Tier 1’ priority areas have reduced overlap with the previously identified Ovens Murray and Gippsland Renewable Energy Zones. 

Feedback from industry on the study area is open until 30 September 2024, will you be making a submission to advocate for other areas to be prioritised for investigation?

For more details, you can explore the study area and the development process of the 2025 Victorian Transmission Plan through the following links:

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Dana Jeffrey
Associate Environmental Scientist
djeffrey@emmconsulting.com.au         
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Deb Butcher
Associate Director
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