The cost of Victoria's renewable energy transmission plan is projected to almost double, from an initial estimate of £4.3bn to £7.9bn, according to the latest modelling from state agency VicGrid.
The updated 2025 Transmission Plan, released on Sunday, expands the land available for wind, solar and battery developments by 200,000 hectares, taking the total to 1.88 million hectares across six proposed renewable energy zones. The number of distinct zones has increased from seven to nine, following industry feedback.
The largest expansion is in the state's west, with the Wimmera-southern Mallee zone enlarged and a new area around Coleraine added to the south-west zone. The zones now cover 7.9% of Victoria, up from 7% in the original draft.
State Energy Minister Lily D'Ambrosio said Victoria generated more than 42% of its electricity from renewables in the past financial year, with record levels achieved. She noted the state had the lowest wholesale power prices in the country, at £107 per megawatt hour, compared with £151 in New South Wales and £138 in South Australia.
The higher transmission costs are expected to be recouped through increased consumer bills, though the government argues that lower wholesale prices from additional renewable energy will offset this. The federal government targets 82% renewable energy in the national grid by 2030.
