Victoria’s government is accelerating renewable energy project approvals at an unprecedented rate, fast-tracking over $9 billion worth of investment in under two years. However, this push is occurring alongside a pause in community consultation for key renewable energy zones, particularly in areas recently impacted by bushfires, raising questions about the balance between rapid deployment and local concerns.
The initiative, leveraging powers under the Development Facilitation Program – a COVID-era scheme extended to expedite housing and energy projects – allows Planning Minister Sonya Kilkenny to bypass standard planning panels and VCAT appeals for projects deemed significant economic developments. According to government data, 25 renewable projects, collectively valued at more than $9 billion, have received accelerated approval since 2024. These projects are projected to power over 735,000 homes annually, with battery storage initiatives capable of supplying 2 million households during peak evening demand.
The speed of approvals represents a significant shift in Victoria’s approach to renewable energy infrastructure. Previously, more than one in five renewable energy applications faced delays at the Victorian Civil and Administrative Tribunal (VCAT), with some cases extending timelines by as much as two years. The Development Facilitation Program aims to reduce this bottleneck, offering a pathway to completion in approximately four months.
Recent approvals include a 300-megawatt battery in Heywood, designed to power 103,000 homes, and the Glenrowan 400-megawatt battery, capable of supplying 138,000 homes during peak periods. These battery projects are strategically located near key grid infrastructure to store excess energy generated during peak solar and wind production, ensuring a more reliable power supply during periods of high demand and lower renewable generation.
The government highlights the economic benefits of this accelerated rollout. Minister Kilkenny stated that the program has “unlocked more than $9 billion worth of investment into renewable energy projects, helping provide cheaper and cleaner energy to hundreds of thousands of Victorian households.” Energy Minister Lily D’Ambrosio added that the government is “building the energy future that will help lower power prices and deliver real benefits for households and businesses.” Victoria has already surpassed its 2025 renewable energy target, with renewables accounting for 22.6% of electricity generation, exceeding the legislated goal of 40%.
However, the rapid expansion isn’t without its challenges. VicGrid, the state’s energy infrastructure planning agency, has paused consultation on the declaration of Victoria’s six proposed renewable energy zones. This pause is directly linked to recent bushfires, with the agency acknowledging that affected communities are still in recovery and not in a position to engage in further consultation. Community sessions planned for late January and early February have been rescheduled, and VicGrid intends to extend the consultation deadline to allow for more comprehensive feedback.
The scale of renewable energy and storage projects underway is reshaping Victoria’s power grid in anticipation of the 2028 closure of the Yallourn power station, one of Australia’s largest coal-fired generators. The state’s offshore wind auctions, however, are facing delays, placing increased pressure on onshore wind, solar, and battery storage to compensate for the 1.48 gigawatts of power lost when Yallourn ceases operations.
This rapid development has sparked opposition from some regional communities, who express concerns about land use and a perceived lack of adequate consultation. The Across Victoria Alliance is holding a conference this weekend, featuring One Nation MP Barnaby Joyce, to focus on the impact of these projects on rural areas. Premier Jacinta Allan has described the event as a “misinformation convention” and will not be attending. Opposition Leader Jess Wilson has cited a scheduling conflict as the reason for her absence, while Victorian Nationals leader Danny O’Brien and Bev McArthur, the opposition’s leader in the upper house, will participate.
The government has responded to community concerns by offering targeted benefits for regional areas and implementing measures to address “dodgy developer” behavior. Changes have also been made to the boundaries of the proposed renewable energy zones to address environmental and industry concerns. The situation highlights the complex interplay between the urgent need for renewable energy transition and the importance of community engagement and addressing local impacts.
The pause in consultation on renewable energy zones, while intended to be sensitive to communities recovering from bushfires, underscores the delicate balance the Victorian government faces. Successfully navigating this transition will require continued dialogue, transparent communication, and a commitment to addressing the concerns of those directly affected by these large-scale infrastructure projects.
