Victorian Transmission

Investment Framework
PRELIMINARY DESIGN

Summary for communities

JULY 2022
Victorian Transmission
Investment Framework
PRELIM INARY DESIGN
SU M MARY FOR COM MUNITIES

Acknowledgement of Traditional Owners

We acknowledge and respect Victorian Traditional Owners as
the original custodians of Victoria’s land and waters, their unique
ability to care for Country and deep spiritual connection to it.
We honour Elders past and present whose knowledge and wisdom
has ensured the continuation of culture and traditional practices.
We are committed to genuinely partner, and meaningfully engage, with
Victoria’s Traditional Owners and Aboriginal communities to support
the protection of Country, the maintenance of spiritual and cultural
practices and their broader aspirations in the 21st century and beyond.

Have your say Shortened terms

EES Environmental Effects Statement
engage.vic.gov.au RDP Renewable Energy Zones Development Plan

REZ Renewable Energy Zone

There are consultation questions throughout this
document related to community engagement,
strategic land use assessment planning, benefit
sharing and VicGrid’s role.
We encourage you to provide feedback on the
proposed VTIF. Your views will help shape future
investment decisions about the development
and coordination of large-scale transmission
in Victoria’s REZs, including the role of VicGrid
in community engagement. You can provide
feedback by:
• Submitting a response to this consultation
paper through Engage Victoria, the Victorian
Government’s online consultation platform at
engage.vic.gov.au
• Completing an Engage Victoria community
survey which takes about 10‑15 minutes,
available at engage.vic.gov.au/victorian-
transmission-investment-framework
All submissions must be received
by 15 August 2022
VTIF Victorian Transmission Investment Framework
Other terms
Transmission corridor
A linear area of land that has potential to host
a transmission route within it. As an indication
of scale, a corridor could be up to 10 kilometres
wide. Eventually this could be narrowed down to a
transmission route within the corridor.
REZ pathway
A REZ pathway describes one way transmission,
generation, storage could be developed across
Victoria’s REZs over 25 years. It would usually
include multiple potential projects, across multiple
REZs. In particular, it would specify how new
transmission capacity would be allocated between
REZs, the most appropriate corridors where
that capacity could be sited and the technical
requirements needed to meet security and
reliability standards.
The proposed VTIF would first develop multiple
candidate pathways. From this set it would identify
an optimal REZ pathway, which would be the
preferred pathway for developing Victoria’s REZs.
Contents

About this document 2

Context 3

What is the proposed Victorian Transmission Investment Framework? 6

Engaging local communities in our REZs 10

A new strategic land use assessment 14

Community benefit sharing 16

Traditional Owner engagement and benefit delivery 18

The proposed role of VicGrid 19

Next steps 21

1
Gannawarra Solar Farm  Edify Energy
About this document
The Victorian Government will consider a proposed Victorian Transmission
Investment Framework (VTIF) that would plan and deliver Victoria’s Renewable
Energy Zones (REZs). REZs are areas across the state with high-quality renewable
energy resources and strong potential for large-scale renewable energy generation.
Harnessing Victoria’s REZs will be essential to meet
the challenges of our changing energy system, and to
ensure clean, affordable and reliable electricity to all
Victorians in the future. REZs will also deliver regional
development opportunities and ensure communities
share in the benefits of the energy transition.
Transmission infrastructure is the backbone of our
electricity system and will be critical to developing our
REZs. The proposed VTIF, outlined in this document,
would help coordinate transmission investment with
renewable energy generation and storage across
Victoria’s REZs, to ensure we have the infrastructure
needed, in the right places and at the right time. This
would help deliver electricity that is reliable, affordable
and low emissions, to all Victorians.
It is vital that our approach to
REZ development fosters local
community support and the
investment required to meet the
needs of the energy transition
2 Victorian Transmission Investment Framework Preliminary Design Summary
As part of this approach, VicGrid is exploring how to
make the planning and development process more
inclusive and participatory, so we can integrate the views
and values of local communities, Traditional Owners,
agriculture and farm businesses and other stakeholders.
VicGrid was established in the past year by the Victorian
Government as a division within the Department of
Environment, Land, Water and Planning (DELWP) to lead
the delivery of REZs.
This document summarises the proposed VTIF and
is intended as a resource to support interested
stakeholders and communities to share their views.
In particular, this document focusses on opportunities
for community engagement, land use planning and
benefit sharing.
It would apply to all future Victorian transmission
development, but not apply to projects that have
already commenced. It does not cover any specific
transmission projects. Further and more technical
detail on the proposed VTIF is contained in the
Victorian Transmission Investment Framework:
Preliminary Design Consultation Paper, available from
engage.vic.gov.au/victorian-transmission-investment-
framework.
Importantly, the VTIF proposal outlined in this paper is
subject to the Victorian Government approval and is
presented here for stakeholder input.
Context

Victoria is undergoing a once-in-a-generation opportunity as we transition to a clean

energy future. To ensure Victoria has an affordable, reliable and secure electricity
supply that meets our emissions reduction targets, we need a next-generation power
grid that connects the world-class renewable energy resources across our state.

Victoria’s electricity system is The Victorian Government is committed to ensuring our

entering a period of change
Our electricity system has been stable for decades,
delivering power to Victorian households and businesses.
However, technology development is now bringing
changes to the way we produce and use electricity.
The coal-fired power stations that have powered
our state for decades are reaching the end of their
technical life or becoming uneconomic. While these
delivered around 70 per cent of the state’s power
in 2020, industry stakeholders now expect they will
retire by 2032.1 This is being driven by Victoria’s coal-
fired power plants getting older and developments
in renewable energy technology, which is now the
cheapest and most effective way to produce electricity.
At the same time, new and transformed industries
are emerging that rely heavily on electricity. These
include electrification of cars, buses and trucks and
replacing residential, commercial and industrial gas
uses. In the coming decades these and other uses could
drive a large increase in Victoria’s electricity demand,
potentially several times higher than the current level.
electricity supply can meet these challenges and deliver
affordable and reliable power to all Victorians, while also
meeting our target of net zero emissions by 2050.
A key near-term priority in this transition is to ensure
that we are prepared for the likely early closure of
Victoria’s coal-fired power plants. We need to act
quickly and strategically to ensure the transition is
well-managed, by putting in place the major energy
infrastructure needed to replace this capacity. This
means enabling sufficient large-scale renewable
generation and storage to prepare for coal retirements,
but also ensuring Victoria benefits from emerging
opportunities, jobs, training and investment, especially
in regional areas. This work is already being driven by
initiatives such as the Victorian Government’s Victorian
Renewable Energy Target, Solar Homes and becoming
the first state to make a major commitment to develop
the offshore wind sector 2 . In 2020, Victoria recorded
7,800 renewable energy jobs, a third of the sector’s
total jobs in Australia.
Victoria needs long-term planning and investment in
large-scale infrastructure so we can meet our energy
needs through this period of change and capitalise on
the benefits of the energy transition.

1 AEMO draft 2022 Integrated System Plan aemo.com.au/consultations/current-and-closed-consultations/2022-draft-isp-consultation

2 energy.vic.gov.au/renewable-energy/offshore-wind

3
Large-scale Renewable Energy Zones and transmission development
are needed to meet the challenge
Developing large-scale Renewable Energy Zones (REZs) Given the potential speed of coal retirements and
is central to Victoria’s response to these challenges. changes in electricity demand, Victoria needs to start
REZs are areas across the state with high-quality the process of putting the necessary infrastructure in
renewable energy resources, such as wind and solar, place now. Doing so would help keep electricity prices
that are cost-effective to develop (see Figure 1). down, maintain secure and reliable supply, and support
Smaller-scale distributed energy resources like rooftop meeting Victoria’s emissions reduction targets.
solar and community batteries are also important
Without strategic REZ development, Victoria’s energy
elements for the energy transition. Yet these alone
transition could be less coordinated, possibly resulting
would not provide enough power at low enough prices
in a less reliable system, unnecessary spending and
to meet Victoria’s future energy needs.
higher electricity prices. Victoria could also lose some
New investment will be needed to ensure our of the investment and development opportunities that
transmission network is able to harness the state’s the transition to renewable energy has to offer.
renewable resources efficiently. This work has begun.
While REZ development is critical to the state’s energy
In the past year the Victorian Government has
future, it will bring both challenges and opportunities.
established VicGrid, a new division in the Department
It is important that transmission planning and
of Environment, Land, Water and Planning, to lead
development includes meaningful engagement with
the delivery of REZs. Through the Government’s
local communities, Traditional Owners, individual
$540 million REZ fund, VicGrid has progressed
landowners, farm businesses and others to plan and
urgent, no-regrets investments to strengthen and
develop our REZs in a way that maximises the collective
modernise Victoria’s grid in areas with existing issues
benefits and minimises any negative impacts. We
and constraints.3
need to work closely with our regional communities to
Further investment in transmission will be needed to respond to their needs and help facilitate the actions
develop our REZs and capitalise on emerging energy needed as part of their vision for the future.
technologies. However, these investments can be costly
and would take up to a decade to deliver.

figure 1 Victoria’s Renewable Energy Zones

Red Cliffs

Wemen

MURRAY RIVER

Kerang

CENTRAL NORTH
Glenrowan
Shepparton
WESTERN VICTORIA Bendigo Dederang

Horsham

OVENS MURRAY
Bulgana
Eildon
North of Ballarat
PROPOSED
Waubra

Ballarat
Sydenham
SOUTH WEST
Mortlake
Loy Yang
Heywood
Terang Hazelwood
Portland
GIPPSLAND

Western Victoria Transmission Network Project

CURRENTLY UNDER DEVELOPMENT
3 For more information on see energy.vic.gov.au/renewable-energy/renewable-energy-zones

4 Victorian Transmission Investment Framework Preliminary Design Summary

New transmission planning and development arrangements are needed
to develop REZs in the interests of all Victorians
Responding to these challenges, a proposal for a
Victorian Transmission Investment Framework (VTIF)
is being developed. The proposed VTIF builds on
feedback received on the Victorian Government’s REZ
Development Plan (RDP) Directions Paper (released in
February 2021). While views from the energy industry,
government and community stakeholders were
sometimes diverse, feedback consistently indicated
that effective REZ development requires:
The proposed VTIF would be an integrated process
for planning and developing the transmission
infrastructure needed for REZ development. It would
help Victoria adapt to a changing electricity landscape,
coordinate the timely development of REZs and ensure
that land use, environment and local community
needs are integrated into their design and delivery. It
is designed to foster community support as well as a
strong investment environment to meet our electricity
needs through the energy transition.

• Proactive and strategic planning to address the

state’s electricity network needs
• Consideration of a wider range of benefits and
costs in planning and investment decisions
• Including a more strategic approach to land use
conflicts and community preferences
• Inclusive processes with early, ongoing and
meaningful avenues for localised engagement
• A broad agenda that could deliver a range of
benefits and regional development opportunities
across Victoria

5
What is the proposed Victorian
Transmission Investment Framework?
The VTIF is a policy proposal that, if implemented by the Victorian Government,
would be a new process for planning and developing the electricity grid in Victoria.
The proposed VTIF would apply across Victoria and would become the primary
vehicle for planning REZ development, including the long-term transmission
projects needed to meet Victoria’s energy needs.

As outlined in Figure 2, the VTIF’s objectives and
approach would be to provide a more proactive,
strategic and adaptive approach to REZ development
in Victoria. It is also intended to be more participatory
and inclusive of regional and local interests. This
should foster community support and renewable
infrastructure investment.
How would the VTIF work?
The VTIF would develop a 25-year strategic plan
for Victorian transmission and REZ development,
called the ‘optimal REZ pathway’. The optimal REZ
pathway would be a set of transmission projects to be
delivered in stages over the coming 25 years. It would
be designed to give Victoria a highly resilient and
robust transmission network, capable of minimising
costs to electricity consumers under a range of
possible futures while meeting environmental and
community standards.
Planning a resilient grid is important because of the
increasing complexities in the electricity sector. It is
becoming harder to accurately forecast what Victoria’s
precise needs will be. Because of this there is a risk of
planning to a particular view of the future, but incurring
high costs to adapt the electricity system if that
scenario does not play out. The optimal REZ pathway,
if implemented, would be designed to cope with this
uncertainty and would be updated every four years to
adapt to changing circumstances and needs.
At its heart, the VTIF would seek to create improved
processes and outcomes for a wide range of
stakeholders and partners, as outlined in Figure 3.
It incorporates early localised engagement across
Victoria’s REZs to help identify the most appropriate
areas where transmission projects could be sited,
aiming to balance infrastructure development, regional
investment, jobs and other local benefits across
the state.
It would also produce a plan with more certainty for
investors, industry, agriculture, Traditional Owners, local
government, communities and individual landowners.
A summary of the proposed process is outlined in
Figure 4.
Incorporating community
feedback into future
transmission planning
Feedback from local communities, Traditional Owners,
farmers and regional stakeholders has highlighted
the need for greater engagement during transmission
planning processes than is provided under the current
framework. These groups want clear and coordinated
avenues for early and meaningful engagement as
well as opportunities for local benefits. This includes
a desire for up-front attention to sensitive areas for
development and potential land use conflicts, such
as the impact on agricultural land. These impacts
and concerns are currently assessed through the
Environmental Effects Statement (EES), but only after
a project has undergone several years of planning.
This can overlook key issues for local communities
and creates a risk of project failure well into
its development.
The proposed VTIF aims to embed local input and
land use planning in the state’s REZ development
process to build a level of community support for
REZ development and help manage the cumulative
impacts that communities feel over time. It would direct
development towards areas that maximise benefits to
local communities while minimising negative impacts
and investment risks for REZ transmission projects.

6 Victorian Transmission Investment Framework Preliminary Design Summary

figure 2 Proposed VTIF objectives and approach
OBJECTIVE PROPOSED APPROACH

Maintain core electricity objectives Ensuring that Victoria’s electricity supply is secure, reliable, affordable
and reduces emissions

Proactive and delivers Early planning to identify the state’s long-term energy system needs and
timely investments meet them with anticipatory investments

Adaptive and flexible Reviewing and updating the state’s plan as circumstances evolve to
continue to meet Victoria’s energy needs

Coordinated Integrated and long-term planning to identify preferable and acceptable

locations for REZ infrastructure and the right mix of while coordinating
shared benefits across the state

Transparent and more certain A clear investment plan for the state’s REZs, with processes that provide
more certainty to investors and communities

Tailored to Victoria’s objectives Incorporating a wide range of considerations into the planning process to
and energy needs maximise the benefits of REZ development in Victoria

Inclusive and participatory Early, ongoing and meaningful engagement so local values and
preferences are integrated in the planning and development of REZs

Fair and meaningful benefits Clear and coordinated avenues for local and regional benefits,
supported by VicGrid

figure 3 How the proposed VTIF creates better outcomes for communities

Early planning and dialogue with Traditional Owners, local communities, farm businesses, individual
1 landowners and regional stakeholders to prepare these groups for engagement so they can provide
meaningful input into the transmission planning process

Coordinated and consistent engagement outcomes through an integrated planning approach that links
2 engagement processes as REZs are developed

Transparent communication and engagement processes that are accessible and easy to understand
3

Regular feedback loops throughout the process to respond to issues, build understanding and
4 manage expectations

A robust approach to benefit sharing that enables fair, meaningful and locally-driven benefits for
5 hosting transmission infrastructure

Avoiding and minimising land use conflicts and impacts to sensitive sites through early, strategic planning
6 to manage impacts over time

7
figure 4 Proposed VTIF process

2
VTIF

1 3 4
System Candidate Optimal REZ
stage scenarios REZ pathways REZ pathway transmission
projects

Purpose Identify the investment
needs for Victoria’s
electricity system
for the next 25 years,
consistent with net zero
emissions by 2050
Determine how
transmission,
generation and storage
infrastructure could
be developed across
REZs to meet the needs
of a system scenario
Select the ’optimal’
REZ Pathway that
would deliver the most
robust, reliable and
affordable electricity
system at lowest cost
Identify, assess and
procure projects from
the need defined by the
optimal Pathway Plan

Outcomes Several credible Viable and appropriate
future ‘scenarios’ development pathways
specific to Victoria’s for each system
electricity needs to scenario, balancing
guide our planning technical, social,
environmental and
economic considerations
A preferred Pathway Cost-effective projects
Plan for REZ to meet the need defined
development in the optimal Pathway
Plan, consistent with
up-front community
and environmental
assessments

Key new Using a strategic Undertaking risk-based Assessing projects

features land use assessment ‘optimisation’ analysis through a new proposed
and multi-criteria to identify the most regulatory test – the
assessment, with early robust and resilient Plan Victorian Network
engagement, to develop Investment Test
REZ Pathways that
consider community, land
use and environmental
issues up-front

Securing better outcomes Incentivising generators into

for all Victorians under the VTIF Victoria’s REZs through access
and pricing arrangements
Together, the elements of the proposed VTIF
would contribute to the following outcomes Purpose Attract investment to Victoria’s
REZs by allocating rights for
Key Victorian economic, social and environmental
generation and storage to
objectives are adequately accounted for, including
connect to the network
the state’s zero emissions by 2050 target and
regional development goals Outcomes Efficient allocation of access
rights for generation and
Investment decisions can anticipate and meet the storage. Proceeds may help
state’s future energy needs fund REZ infrastructure and
shared local benefits
Planning and delivery processes are coordinated
and cohesive Key new Option to apply conditions to
features access rights, including possible
Community, land use and environmental engagement and benefit sharing
considerations are adequately included in the arrangements that capture
planning process, with meaningful opportunities for value for host communities while
input and localised benefits supporting investment into REZs

8 Victorian Transmission Investment Framework Preliminary Design Summary

 5 6
Approvals
NO PROPOSED CHANGE
Seek planning and
environmental approvals
for the selected
transmission project
REZ transmission
projects are assessed
under relevant legislation,
such as EES requirements
Delivery
NO PROPOSED CHANGE
Construct, operate
and maintain REZ
transmission project
and deliver benefits
to host communities
Project is constructed
and operated by
transmission provider
and benefits are
delivered to local
communities
7
Review
Review and update the
optimal REZ pathway
Updated REZ Pathway
Plan with projects
identified for the
next 4 years
9
Engaging local communities in our REZs

Large-scale transmission and generation infrastructure often impacts

communities. The proposed VTIF aims to provide a considered approach to REZ
development by ensuring that Traditional Owners, local communities, agriculture
and farm businesses, individual landowners and other regional stakeholders and
industries are engaged in a proactive, inclusive and coordinated way.

Engagement should be genuine and transparent,
integrating local values, interests and priorities into the
REZ planning process. This includes partnering with
Traditional Owners and working with local communities
up-front to identify acceptable areas for development,
appropriate projects and localised benefits that can be
delivered through REZ development.
The proposed VTIF would offer multiple opportunities
to influence the planning and delivery process of REZs,
including new engagement points that contribute to
the design of the plan for Victoria’s REZs. Through REZ
development we also want to identify and activate
opportunities to improve the economic, social and
environmental future of our regions in ways that align
with local aspirations.
The Victorian Government is considering ways to
The proposed, high-level engagement process is
outlined in Figure 5. An overview of the engagement
points along the VTIF process where you can be
involved in the REZ development process is outlined
in Figure 6. VicGrid would develop a more detailed
engagement approach, including methodology,
based on further design and implementation of the
proposed Framework.
Have your say
1 Who should participate in the process for
developing REZs?

2
adequately capture local views and issues throughout
How should they be engaged to achieve the
the decision-making process, including through existing
proposed outcomes?
bodies or more targeted and tailored forums such as
regional or community reference groups. These groups
would provide a centralised and tangible platform
for communities to influence REZ development and
3 What representative bodies would be
appropriate for enabling coordinated

could extend to a wide range of stakeholders, including engagement across our REZs? How should
government and industry. those bodies be included into the decision-
making process?

10 Victorian Transmission Investment Framework Preliminary Design Summary

figure 5 High-level engagement approach under the proposed VTIF
to deliver REZ transmission projects

ENGAGEMENT BROAD
 TARGETED

REZ DEFINE DELIVER

PROJECT DEFINE STUDY AREAS DEFINE CORRIDORS ROUTE PROJECT
DELIVERY
STAGE

1 2 3 4 5 6
System Candidate Optimal REZ transmission Approvals Delivery
scenarios REZ pathways REZ pathway projects

Build under- Identify Identify Define preferred project route Continued

standing of local values, issues, and project specifications engagement
the energy preferences impacts and with affected communities with local
transition and opportunities and establish benefit communities
opportunities within study sharing arrangements to address
across areas and issues and
Victoria’s potential impacts and
REZs to corridors for deliver local
reflect in REZ projects and regional
the Plan benefits

11
figure 6 Proposed engagement opportunities under VTIF

We are here VicGrid lead

Framework design Framework Proposed Victorian Transmission Inve

implementation process

1 2
Ongoing engagement to help Early engagement System Candidate
scenarios REZ pathways
design the proposed VTIF and our
approach to engaging on REZs Gather local input Develop Develop
for strategic land use system scenarios REZ Pathway Plans
assessment
Consultation to develop Targeted engagement
Early and wide scenarios, including to determine candidate
engagement on local modelling assumptions corridors from the
values and priorities and inputs. Wide strategic land use
to identify significant engagement to build assessment and
sites and appropriate understanding of our provide input into
trade‑offs electricity system the multi-criteria
needs and outlook assessment. This
process of targeted in-
depth engagement will
help to balance social,
cultural, environmental,
economic and technical
considerations
in developing the
Pathway Plans

Foundational engagement chevron-right VicGrid’s proposed wider role to build community support
Build understanding of REZs and identify issues,
by supporting engagement and benefit sharing  SEE FIGU
priorities and aspirations across our REZs

VicGrid’s ongoing partnership with Traditional Owners

through tailored engagement and benefit delivery  SEE

12 Victorian Transmission Investment Framework Preliminary Design Summary

 VicGrid

estment Framework chevron-right

Proponent lead

3 4 5 6 7
Optimal REZ Approvals Delivery Review
REZ pathway transmission NO PROPOSED CHANGE NO PROPOSED CHANGE
projects

Select optimal Assess and procure Project approvals Project delivery Review optimal
REZ Pathway Plan REZ transmission REZ Pathway Plan
Wide engagement Proponent conducts
projects within proposed ongoing engagement
Wide engagement to Targeted engagement
consult on the selected Targeted engagement corridor to gather to respond to issues and wide consultation
optimal REZ Pathway as part of formal more detailed input and deliver local and to review Pathway Plan
Plan, with targeted project assessment. regarding social, regional benefits, and update as required
early engagement Wide engagement cultural, environmental supported by VicGrid
on transmission on issues, impacts and regional economic
projects planned for and potential considerations as
declared REZs benefits ahead of part of planning
project approvals and environmental
approvals, such as
the EES. This includes
targeted engagement
with affected groups
and is a key point
for localised input to
shape the final design
and route of the
project. Proponent also
commences benefit
sharing discussions,
supported by VicGrid

t for REZs chevron-right

URE 9

chevron-right
E PAGE 18

13
A new strategic land use assessment

A key element of the proposed VTIF would be a new strategic land use assessment
tool to the transmission planning process. The proposed strategic land use
assessment, which is in development, would support better decisions on land
use and the impacts of transmission development. This tool would be used to
proactively identify the most appropriate areas to site transmission, generation
and storage infrastructure in Victoria’s REZs at stage two of the proposed process,
taking into account community values, priorities and concerns.

The strategic land use assessment tool would map and

evaluate several land use values in each of the state’s
REZs (see Figure 7). This could include indigenous
cultural heritage, agriculture, visual amenity and
ecological sensitivity, among others. This evaluation
of social, cultural and environmental factors alongside
technical and economic considerations would help
uncover appropriate areas for development and those
that are high-risk.
The tool would help manage land use and community
issues, including significant sites and the impacts of
development that can build up over time. It would help
direct development towards areas that maximise the
benefits to local communities while minimising negative
impacts. The tool would also be used to capture existing
and emerging community issues and concerns, during
the REZ development process.
Outcomes from the strategic
land‑use assessment
The strategic land use assessment would provide
the best chance to minimise any negative impacts to
communities and landscapes from REZ development and
maximise regional opportunities. It would help create:
ƒ More transparent, coordinated and timely processes
for REZ infrastructure siting
ƒ Clear expectations through building local
understanding of REZ planning
ƒ More meaningful engagement processes and
outcomes by involving local communities and
partnering with Traditional Owners early in the
planning process
ƒ Greater certainty and clarity for REZ development
project proponents around suitable locations and
ƒ Smoother approvals processes by identifying and
minimising planning, environmental and community
issues early in the process

14 Victorian Transmission Investment Framework Preliminary Design Summary

 CASE STUDY

Victorian Government’s South West Landscape Assessment Study

In 2012, the Victorian Government completed an assessment study of the character and significance of
landscapes in Victoria’s South-West Region. The study provided a unique insight into, and detailed description
of, local landscape values and their contribution to the economic, social and environmental significance of
the region.
A key part of the study included capturing the community’s values on the character and significance of the
landscape, both positive and negative. Community members were engaged early in the process, so their values
and perceptions of the landscape could be integrated into the findings and outcomes. This process included
inviting people to submit photos to capture local ideas about landscape character, significance, intangible or
non-visual aspects and key threats.
Like the proposed VTIF’s strategic land use assessment, this example shows how significant landscapes can be
protected and managed to meet the social, economic and environmental values and aspirations of a region.

figure 7 Strategic land use assessment heat map example

Image adapted from: Kentucky Transmission Line Siting Methodology. EPRI, Palo Alto, CA, Kentucky Power Cooperative, Winchester, KY,
and E.ON U.S., Louisville, KY: 2007. 1016198.

Have your say

4 What should be considered in the

Strategic Land Use Assessment?

5 How should we gather and measure

information and involve local communities,
Traditional Owners and regional
stakeholder groups in the process?

15
Community benefit sharing

Sharing the benefits of infrastructure development can enhance the social and
economic outcomes for the local community and foster community support.
A range of benefit sharing models are being explored to identify what would be
most appropriate for REZs, who should be eligible to receive benefits and how
these methods should be governed and implemented.

The development of REZs has the potential to unlock
a variety of social and economic benefits for local
communities. VicGrid understands that communities
expect tangible and long-lasting benefits from REZ
development, delivered through processes that are fair
and meaningful. Victoria’s Community Engagement
and Benefit Sharing (CEBS) Guide for renewable energy
developers was updated in July 2021 and outlines the
Government’s expectations, providing developers with
multiple examples, ideas and delivery models.
While benefit sharing programs are increasingly
used by renewable energy generators to help build
community support and distribute development
benefits among host communities, they could be
further integrated into transmission projects.
The Victorian Government is considering a range of
options to improve benefits to local REZ communities
and Traditional Owners through the proposed VTIF.
As shown in Figure 7, these options include potential
new benefit sharing arrangements for generation and
transmission projects that could maximise outcomes
for community. These measures would build on the
Government’s existing Social Procurement and Local
Jobs First policies, which would help deliver jobs,
skills and development opportunities through REZ
transmission project construction and operation.
We are also seeking feedback on the best way to
administer and deliver benefits – for example, by
individual project proponents, community groups or
through a centralised body such as VicGrid.
VicGrid recognises the importance of early and ongoing
engagement and partnerships with local communities
and Traditional Owner groups impacted by renewable
energy development. Benefit sharing should be
understood and assessed in the context of local needs
and priorities and drive development outcomes aligned
with local and regional aspirations.
We are committed to developing arrangements that
improve benefits to local communities and Traditional
Owners while balancing the costs to electricity
consumers and the practicalities of any benefit
sharing arrangements.
We are interested in feedback on how communities
should be involved in these models, so the processes
are meaningful and deliver the right outcomes.
We are also interested in understanding how VicGrid
can best support benefit sharing outcomes and unlock
regional opportunities through its role in working with
stakeholders, communities and partners across our
REZs (see Figure 8).

16 Victorian Transmission Investment Framework Preliminary Design Summary

figure 8 Potential community benefit sharing under the proposed VTIF

solar-panel wind-turbine utility-pole-double solar-system

Generation Transmission Mixed
Generation and transmission

Obligations could be imposed on
generators in return for ‘access’
rights to use REZ infrastructure to
capture value for host communities.
These could be in the form of
prescribed or industry-led solutions
Benefit sharing could be included
as a cost in project assessments
(investment test) or as part
of the selection criteria when
assessing transmission projects
(procurement)
A centralised approach could
pool funds from generation and
transmission within REZs to
help deliver local and regional
benefits at a broader scale

Have your say

6 What benefits would you like to see from

REZ development?

7 What are the most suitable arrangements

to ensure community benefits are fair
and meaningful?

8 How should communities, Traditional

Owners and regional stakeholders
be involved in decision-making and
other processes?

17
Traditional Owner
engagement and benefit delivery
VicGrid is committed to engage and partner with Traditional Owners
on the development of Victoria’s REZs.

The Victorian Government is committed to enabling VicGrid will listen to Traditional Owners and Aboriginal
the Self-Determination of Victoria’s First Peoples. The Victorians feedback and be responsive and accountable
Department of Environment, Land, Water and Planning to their concerns and aspirations. Outcomes will be
(DELWP) has adopted Pupangarli Marnmarnepu, our delivered through an engagement approach tailored
Aboriginal Self-Determination Reform Strategy. to and respecting Traditional Owners’ needs, time and
expectations, including keeping Traditional Owners and
The Strategy is a 5-year roadmap that empowers
Aboriginal Victorians informed ahead of time as REZs
and partners with Traditional Owners and Aboriginal
are planned and developed. The approach will be place-
Victorians to advance self-determination and aligns
based, facilitated through VicGrid’s regional partners
to the whole-of-government commitments set out in the
as part of DELWP’s broader commitment to enabling
Victorian Aboriginal Affairs Framework 2018-2023.
Self-Determination.
DELWP is working towards a future where the inherent
The proposed VTIF would include specific opportunities
principles and architecture of Pupangarli Marnmarnepu
for Traditional Owners to partner in decision-making,
are embedded and Traditional Owners and Aboriginal
such as during the Strategic Land Use Assessment. At
Victorians are at the centre of decision-making around
the procurement stage, REZ projects would be evaluated
issues and opportunities that directly affect them.
against the Victorian Government’s Social Procurement
Engaging with Traditional Owners and Aboriginal Strategy, which includes promoting outcomes for
Victorians is a key role for VicGrid and would be Aboriginal business sectors. VicGrid would work with
embedded in REZ planning and decision-making Aboriginal businesses to support their involvement and
processes. VicGrid will work in partnership with feedback in REZ development projects and would facilitate
Traditional Owner Groups and Aboriginal Victorians and enable economic and other benefits as identified by
to better understand what REZ development may Traditional Owners.
mean for Country and community, what concerns
VicGrid welcomes feedback from Traditional Owner
Traditional Owners might have about REZ development
groups and Victorians on how we can maximise these
and opportunities to bring benefits to Victoria’s
opportunities under the proposed VTIF.
Aboriginal communities. This includes working
with both Registered Aboriginal Parties and non-
registered Traditional Owner groups, peak bodies,
Victorian Aboriginal businesses, and local Aboriginal
communities across Victoria.

18 Victorian Transmission Investment Framework Preliminary Design Summary

The proposed role of VicGrid

VicGrid was established in August 2021 to coordinate REZ planning and

development. VicGrid is already playing a role in overseeing priority REZ Stage
One investments, which are smaller, urgent, no-regrets projects to strengthen our
existing grid. Should the proposed VTIF be implemented, new roles and functions
will need to be created.

As the body established to coordinate the planning and
development of REZs, VicGrid could take on a mix of
technical and strategic accountabilities to practically
implement the proposed VTIF, alongside a wider role in
delivering improved engagement outcomes and benefits
for local communities, Traditional Owners, agriculture
and farm businesses and regional stakeholders.
An important part of this would be working to
build relationships with and between a range of
stakeholders and partners, including local councils,
Traditional Owners, host communities, key industries
and sectors such as agriculture, and relevant state
Government bodies.
VicGrid’s proposed
strategic and technical role
Under the proposed VTIF VicGrid’s strategic and
technical role would include:
ƒ Developing and running system scenarios
ƒ Identifying REZ pathways, including undertaking the
strategic land use assessment and multi-criteria analysis
ƒ Undertaking the optimisation analysis to identify the
optimal REZ Pathway Plan and
ƒ Administering access rights to REZs
To ensure an integrated, end-to-end process within
REZs, further consultation with Australian Energy Market
Operator (AEMO) and other stakeholders is needed to
determine how the new VTIF functions are best delivered.
VicGrid’s proposed role
in engagement and enabling
local and regional benefits
Feedback received as part of the RDP Directions Paper
engagement process indicated widespread support for
VicGrid to take on an overarching and broad role with
respect to engaging communities and partnering with
Traditional Owners to build support for REZs, including
through earlier land use planning. VicGrid will need
to build trust in the community to ensure it delivers
on this role and maximises the opportunities of REZ
development. Appreciating the unique qualities, values
and aspirations of our regions, VicGrid would take a
place-based approach to working with local communities
so that opportunities are shared and locally driven.
This wide-ranging role, proposed and outlined below,
would support improved processes and outcomes for
communities and Traditional Owners across our REZs
as REZ development continues.

19
figure 9 VicGrid’s proposed role in engagement and enabling local benefits

memo-circle-info location-dot
Providing information on REZs Building an ongoing Partnering with
and transmission projects relationship with communities Traditional Owners and
Victoria’s Aboriginal communities

Providing information and updates
to local communities around key
developments, impacts or concerns
throughout the planning process to
build understanding
Providing an ongoing presence and
facilitate community engagement
through the planning and delivery of
REZs
Partnering with Traditional
Owners and Victoria’s Aboriginal
Communities, including Aboriginal
businesses, to proactively account
for their needs and concerns,
and facilitate and catalyse local
benefits and opportunities
identified by Traditional Owners
and Aboriginal Victorians

comments handshake-simple user-helmet-safety

Partnering with key Identifying and catalysing Developing and leveraging
stakeholders to better local benefit sharing regional development
coordinate engagement during opportunities
planning and delivery of REZs

Working closely with government,
industry and community
stakeholders to better coordinate
on-the-ground engagement and
development activities so they meet
community needs and mitigate
cumulative impacts as REZs
are developed
Working with business, training,
government and community
organisations and institutions to
identify, articulate and catalyse
local benefits through building
partnerships and networks
Developing and leveraging
opportunities for jobs and skills
development, as well as other
opportunities such as community
energy projects and distribution
network upgrades, or land use
innovations in the agricultural
sector. This includes working
with developers, government,
industry and community to
enhance local content and social
procurement outcomes.

Have your say

9 How should VicGrid help deliver benefits

to communities and partner with
community, Traditional Owners, industry
and regional stakeholders?

10 Should VicGrid play a direct role in benefit

sharing through a coordinated approach?
If so, how?

20 Victorian Transmission Investment Framework Preliminary Design Summary

Next steps
VTIF CONSULTATION PROCESS

Figure 10 maps out key milestones and timeframes in the REZ Development Plan (RDP)
process to date. Stakeholder briefings are planned for July and August 2022.
To learn more about these and be notified when they are scheduled,
please visit engage.vic.gov.au/victorian-transmission-investment-framework

figure 10 Progress and next steps

2021 JULY - AUGUST 2022 LATE 2022

RDP Directions Paper VTIF Consultation Stakeholder briefings Feedback on

released Paper released consultation
Industry workshop
February 2021 1 July 2022
Regional community
Submissions close information sessions

15 August 2022

Included consultation Public submissions sought VTIF consultation

period and significant report
Visit engage.vic.gov.au
stakeholder response
to help inform
REZ planning and
development

Have your say  summary of questions

Engaging local A new strategic land- Community The proposed role

communities in REZs use assessment process benefit sharing of VicGrid

1 Who should participate 4 What should be 6 What benefits would 9 How should VicGrid
in the process for considered in the you like to see from help deliver benefits
developing REZs? Strategic Land Use REZ development? to communities
Assessment? and partner with
2 How should they be 7 What are the most community, Traditional
engaged to achieve the 5 How should we gather suitable arrangements Owners, industry and
proposed outcomes? and measure information to ensure community regional stakeholders?
and involve local benefits are fair
3 What representative communities, Traditional and meaningful? 10 Should VicGrid play a
bodies would be Owners and regional direct role in benefit
appropriate for enabling stakeholder groups in 8 How should communities, sharing through a
coordinated engagement the process? Traditional Owners and coordinated approach?
across our REZs? How regional stakeholders If so, how?
should those bodies be involved in
be included into the decision-making and
decision-making process? other processes?

Have your say
engage.vic.gov.au
All submissions must be received
by 15 August 2022
Submission disclaimer
It is intended that all submissions will be published. If you
believe yours contains confidential or commercially sensitive
information, please let us know in writing. If we agree the
information is confidential or commercially sensitive you will
need to provide us with two versions, one complete and one
with the confidential or commercially sensitive information
redacted. The information must be redacted (not deleted)
so that the page numbers are preserved. If you make your
submission public via another means (for example via social
or other media), confidentiality no longer applies and we
will publish the complete version. Subject to confidentiality
agreements, Department of Environment, Land, Water and
Planning (DELWP) staff and advisors will have access to your
submission as part of the assessment process.
energy.vic.gov.au
Accessibility
If you would like to receive this publication
in an alternative format, please telephone
DELWP Customer Service Centre on 136 186,
email customer.service@delwp.vic.gov.au,
or via the National Relay Service on 133 677
relayservice.com.au. This document is also
available on the internet at delwp.vic.gov.au.
© The State of Victoria
Department of Environment, Land,
Water and Planning 2022
This work is licensed under a Creative Commons Attribution
4.0 International licence. You are free to re-use the work under
that licence, on the condition that you credit the State of
Victoria as author. The licence does not apply to any images,
photographs or branding, including the Victorian Coat of
Arms, the Victorian Government logo and the Department
of Environment, Land, Water and Planning (DELWP) logo. To
view a copy of this licence, visit http://creativecommons.org/
licenses/by/4.0/
ISBN 978-1-76105-914-8 (pdf/online/MS word)
Disclaimer
This publication may be of assistance to you but the State
of Victoria and its employees do not guarantee that the
publication is without flaw of any kind or is wholly appropriate
for your particular purposes and therefore disclaims all
liability for any error, loss or other consequence which may
arise from you relying on any information in this publication.