A renewable energy zone proposed to cover Colbinabbin and Nanneella will send developers a “strong signal” that projects should be developed there.

VicGrid has released the draft for the Victorian Transmission Plan, which outlines a renewable energy zone identified adjacent to Kyabram.

The draft, which was released on Friday, May 16, sees the north-central zone between Shepparton and Bendigo, and adjacent to Kyabram, Rochester and Rushworth, carved out as a potential area to build renewable projects.

Renewable energy zones (or REZs) are strategic areas chosen for optimal wind and solar conditions, with battery storage capabilities.

These zones, covering 7 per cent of Victoria, are crucial for the state's 15-year plan to transition from coal to renewable energy.

Draft REZs are described as the areas of the state with “abundant renewable energy resources” such as wind and sun, as well as having the appropriate transmission infrastructure, such as high-voltage power lines and sub-stations.

A spokesperson for VicGrid told the Free Press the REZs would send the energy industry a “strong signal” about where renewable energy development should be focused and built.

The North-Central REZ has a generation capacity for the transmission line of 80 to 100MW for wind energy, which equates to about 17 to 20 wind turbines producing 6MW each.

“Developers with projects inside them will have priority use of the transmission network and will have that capacity protected,” they said.

“VicGrid will engage with existing projects outside the draft zones as part of the consultation process and put in place transitional arrangements for projects that are well advanced in their development.”

The spokesperson said putting a capacity on each REZ means the government can make the rules on renewable energy, focusing on producing the correct amount of energy instead of overrunning the area with infrastructure.

Projects outside REZs will be subject to a grid impact assessment, and developers will need to show their project will not negatively impact the network access of generators inside the zone.

Other proposed projects will still be subject to normal planning and environment approval processes, regardless of whether they are inside or outside a REZ.

Colbinabbin Renewable Action Group committee member John Davies said he thought the draft proposal was indicative of the Cooba Solar Farm, proposed by Venn Energy, being pushed through.

Mr Davies has been advocating against the 606ha large solar farm and battery energy storage system being built next door to his Colbinabbin property.

The project has been a divisive topic of discussion among community members and politicians, with Campaspe Shire Council expressing their objections and six MPs calling on ministers to reject the application which was lodged in January.

The main argument by objectors is the solar farm would be built on “prime agricultural land” in the Heathcote wine region.

“They refer to state planning documents, and they refer to the agriculture and the land being prime agricultural land, and then (the government) go and draw the boundaries ignoring state planning guidelines,” he said.

“It’s all very convenient for (Venn Energy).”

As it is just a draft, the identified areas will be investigated further by VicGrid to learn more about the land use and environment to limit the impact of the energy infrastructure and if VicGrid finds the areas to be appropriate, they will be proposed as an REZ.

The final Victorian Transmission Plan is set to be finalised in late 2025, depending on how much feedback VicGrid gets, and it will undergo more community consultation during the declaration process.

The VicGrid team will be holding community consultation sessions in Kyabram every Thursday from May 22 to June 19 between 10am and 3pm to answer questions and listen to community members.

Other sessions will be available at other location in the region where people can book to come in and meet one-on-one with groups.

To learn more about VicGrid or the Draft Victorian Renewable Energy Zones, visit https://engage.vic.gov.au/victransmissionplan

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Thursday, 25th September 2025

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