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10 Oct 2025, by Amy Sarcevic
Renewables developers recently celebrated the release of VicGrid’s 2025 Victorian Transmission Plan, which laid out better pathways to transmission infrastructure across the state of Victoria.
The plan was logical, in a year where renewables penetration is set to reach 43 percent of the main electricity grid.
But were there any surprising takeaways for developers?
Ahead of the Building Energy Grid Resilience Conference, we spoke with VicGrid CEO Alistair Parker to find out.
Host communities are majorly shaping the expansion
The plan highlighted where transmission infrastructure will be needed to meet forecasted electricity demand, setting out seven programs of transmission investments to be delivered by 2040.
The programs build on a range of existing projects, including Renewables Link (WRL), Victoria to New South Wales Interconnector West (VNI West), Marinus Link Stage 1 and the transmission infrastructure required for the first 2 GW of offshore wind in Gippsland.
It also proposed new renewable energy zones (REZ), including a shoreline REZ that will be declared over the following months.
In total 6 proposed REZ sites were listed, covering Central Highlands, Central North, Gippsland, the North West, the South West and the Western. Collectively, these will encompass 7.9 percent of Victoria’s land area.
“For the first time, Victoria now has a plan for how exactly the clean energy transition is going to take shape,” Alistair said.
“The investment programs will support development for the proposed REZs, encompassing all the expected types and locations of new generation and storage projects we will see over the next 15 years.”
However, the transmission routes have not yet been mapped out and will hinge on talks with local communities.
“We have deliberately not set any preferred routes for the transmission lines, because we want to get out and talk to people first,” Alistair said.
“We want to hear from communities firsthand on where the best and worst places for these lines to be located are.”
So far, feedback from regional communities has helped shape the size and location of the proposed renewable energy zones.
Some REZs will be smaller zones with concentrated infrastructure; others will be larger and more dilute.
Feedback also highlighted the need to minimise impacts on biodiversity and water systems, farmland, and regional community life.
There are new rules for community engagement
In fact, community input is an ongoing theme for VicGrid, who emphasise early, meaningful communication and recently published Community Engagement and Social Value Guidelines.
“We will have 48 new rules,” Alistair said.
“Developers of renewables and transmission infrastructure will need to live up to the things that we’ve heard are important to affected communities and landholders; and these new rules will help them do that.
“It is important to treat host communities with the respect they deserve,” he added.
Data centres and AI are a major focus
VicGrid has a commensurate interest in data centres and artificial intelligence (AI), with demand for the technology have grown exponentially in recent years, placing unprecedented pressure on electricity systems.
“We have seen big [data centre] loads coming on quickly. As we’re transitioning our fuel sources, how we manage those extra loads is going to be really important,” Alistair said.
VicGrid has identified two possible scenarios for data centre demand – each with considerable variation in capacity.
“In our Scenario 1, we will see a steady state growth in electricity use to 2040, and Scenario 2, we would see extensive AI/Data Centres emerge.
“At the high-level Scenario 1 would need 3.5GW of new onshore wind capacity but Scenario 2 would require 14.2GW.
“To give this some context, last year’s peak electricity demand in Victoria was around 9.5GW,” he said.
The scenarios have important implications for developers, with higher demand necessitating higher concentrations of infrastructure in proposed REZs.
Further insight
Sharing more on the plan and answering questions from the floor, Alistair Parker will present at the upcoming Building Energy Grid Resilience Conference, hosted by Informa Connect.
Joining Alistair on the stage are representatives such as Brian Gillespie, Executive Officer, CS Energy; Allina Fawcett, Associate Director, Strategy and Implementation, Rewiring the Nation, Clean Energy Finance Corporation (CEFC); Lynda Osborne, Director, Rennie Advisory.
This year’s event will be held 20-21 November 2025 at the Grand Hyatt Melbourne.
Learn more and register your tickets here.
About Alistair Parker
As CEO of VicGrid, Alistair leads the planning and development of Victorian
Renewable Energy Zones. He has over 35 years’ experience in the energy industry, including a decade of executive leadership roles at AusNet Services in Victoria and the Power and Water Corporation in the Northern Territory.
Alistair’s early career in the UK comprised 15 years with National Grid, as an engineer and in commercial roles. He was then a consultant with Ernst & Young in New Zealand and PricewaterhouseCoopers in Australia.
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