Particle.news

Download on the App Store

Victoria Expands Renewable Energy Zones as Connection Costs Surge to $7.9 Billion

Victorian officials say higher connection costs will be offset by lower wholesale prices

Overview

  • VicGrid’s 2025 Transmission Plan grows designated zones from seven to nine, increasing the footprint to 1.88 million hectares or 7.9% of the state
  • New Australian Energy Market Operator costings lift the estimated connection bill to about $7.9 billion, up from $4.3 billion in the May draft
  • The largest land additions include an expanded Wimmera-Southern Mallee zone and a new area around Coleraine in the South West
  • Renewable sources supplied over 42% of Victoria’s electricity last financial year, supporting the nation’s lowest average wholesale price at $107 per megawatt-hour
  • The government intends to recoup most upfront transmission costs through consumer bills while securing lower household power prices