The Victorian Government has proposed new legislation to further strengthen VicGrid, the body responsible for the planning and development of the state’s renewable energy zones (REZ) and transmission infrastructure.
Victorian Minister for Energy and Resources, Lily D’Ambrosio, introduced the National Electricity (Victoria) Amendment (Stage 2 VicGrid) Bill to the Victorian Legislative Assembly.
VicGrid was established to ensure communities have their say on how transmission and renewable energy projects are planned across the state, and to ensure certainty for industry.
The State Government said it has heard from regional communities that will host new energy infrastructure that the benefits of the energy transition need to be shared fairly – which is why the new bill introduces new REZ Community Energy Funds and a separate fund for Traditional Owners.
The REZ Community Energy Funds aim to support projects and initiatives that improve energy supply, efficiency, and affordability for the host regions. Local host communities will identify and help design projects that will best benefit them, with the final details of the funds will be formalised through further legislation later in 2025.
The establishment of a Traditional Owners Fund aims to support self-determination and the broader aspirations of Traditional Owners impacted by new critical energy infrastructure.
The Victorian Government said this builds on the additional payments for landowners that host new transmission infrastructure that were legislated in 2024.
Landowners already receive full and fair compensation under the Land Acquisition and Compensation Act, with an additional $8000/km per year to ensure that they are financially better off.
The State Government said VicGrid will also minimise impacts of renewable energy projects through well planned development of new transmission, wind, solar generation and storage projects.
The bill will transfer responsibility for transmission network planning from the Australian Energy Market Operator to VicGrid. The State Government said this will enable VicGrid to implement the 2025 Victorian Transmission Plan, which will ensure Victoria builds the right infrastructure in the right place at the right time as it transitions to renewable energy.
The bill also introduces new network access arrangements for VicGrid to manage access to the grid, which is expected to improve coordination, help minimise constraints on the network and give investors more certainty. Access fees paid by generators will be used for the community benefits funds.
Ms D’Ambrosio said, “We’re making sure communities that host renewable energy infrastructure directly benefit from the substantial investments in their regions these projects generate.
“These reforms will make sure industry have the certainty they need to invest and VicGrid can do the important planning works that will keep the lights on and deliver cheap renewable power to Victorian homes and businesses.”
