South Gippsland Shire Council has welcomed newly announced renewable energy funding but called for broader infrastructure support as the Allan Labor Government introduced legislation to expand VicGrid's authority over renewable energy planning.
In a statement to the Prom Coast News, the council acknowledged that Renewable Energy Zone Community Energy Funds will support regionally significant projects improving energy supply and affordability, but wants "broader funding measures to support infrastructure and services that are not just related to energy, but improve the liveability and services to the communities most impacted from the energy transition."
Energy Minister Lily D'Ambrosio recently announced the National Electricity (Victoria) Amendment (Stage 2 VicGrid) Bill, which transfers transmission network planning responsibilities from the Australian Energy Market Operator to VicGrid, enabling implementation of the 2025 Victorian Transmission Plan.
The legislation introduces Renewable Energy Zone Community Energy Funds designed to support projects improving energy supply, efficiency, and affordability for host regions. It is believed that local communities will identify and help design initiatives that best benefit them, with final fund details to be formalised through additional legislation later this year.
A separate Traditional Owners Fund will support self-determination and broader aspirations of Indigenous communities impacted by critical energy infrastructure, building on existing landowner compensation schemes that provide $8,000 per kilometere annually plus full compensation under the Land Acquisition and Compensation Act.
The reforms also establish new network access arrangements allowing VicGrid to better manage grid access, improve coordination, minimise network constraints, and provide investors greater certainty. Access fees paid by generators will fund community benefit programs.
"We're making sure communities that host renewable energy infrastructure directly benefit from the substantial investments in their regions," Minister D'Ambrosio said.
