Victoria’s plan to increase its renewable energy generation is projected to double in cost, after expanding the land set aside for its solar, wind, and battery hubs.
The final edition of the 2025 Victorian Transmission Plan allocates 1.88 million hectares of land for solar energy, wind energy, and battery farms, in an increase of 220,000 hectares. The plan’s estimated cost is A$7.9 billion.
“As coal-fired power stations close and we move further toward a future powered by renewables, we need to support this transformational change with a plan that balances the long-term interests of all Victorians,” said Victorian Minister for Energy and Resources Lily D’Ambrosio.
“The plan attempts to minimise the area of Victoria required for renewable energy zones and the new transmission infrastructure needed, while also providing project developers and investors with sufficient opportunity to generate the energy we need to power homes, farms, schools, businesses, hospitals and other essential services.”
Victoria’s government had estimated the project would cost just $4.3 billion two months ago. The increase follows new Australian Energy Market Operator projections for the transmission lines’ costs.
The difficulty of connecting new renewable energy infrastructure to the power grid without the transmission plan would cost the state’s economy $9.6 billion, according to D’Ambrosio.
Under the transmission plan, the state’s government would add 5.7-9.6 gigawatts of onshore wind power generation, 9 gigawatts of offshore wind power, and 2.3-8.9 gigawatts of utility-scale solar power generation by 2040.
The land designated for wind, solar, and battery farm hubs will cover around 7.9% of the state, across nine zones. Most of the newly added wind and solar generation would be in the state’s South West, West, and Central Highlands areas in the plan’s projected scenarios.
Around 42% of Victoria’s energy was produced by renewables in the 2024-2025 financial year. Under the federal government’s targets, 82% of all energy in the national grid would be renewable.
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