Victoria’s ambitious renewable energy targets are facing a potential setback. VicGrid, the state agency responsible for developing renewable energy infrastructure, has unveiled a revised 2025 Victorian Transmission Plan (VTP) that significantly lowers its projected expansion of renewable energy.

Established in 2021 under the Department of Energy, Environment and Climate Action, VicGrid’s primary role is coordinating and planning the state’s Renewable Energy Zones (REZs), typically encompassing wind, solar, and battery storage facilities. However, the latest draft VTP reveals a more cautious approach to future renewable energy generation.

The revised plan proposes capping the output of wind and solar power within the REZs. This shift in strategy, according to the report, aims to mitigate the risks associated with overproduction, a factor that could potentially deter investment in the sector. The implications of this scaling back on Victoria’s overall renewable energy goals remain to be seen, sparking debate amongst energy experts and stakeholders.