Gippsland Offshore Wind Transmission EES Series One - Online Webinar

Gippsland Wind Transmission Stakes

Victoria's energy landscape is shifting rapidly as coal-fired power stations, including the massive Loy Yang plant, approach retirement in 2035. The Gippsland Offshore Wind Transmission project aims to plug this gap by linking up to 2 gigawatts of offshore wind power to the grid. Declared an offshore wind zone in December 2022, Gippsland boasts world-class wind resources, with feasibility licences granted to developers in mid-2024. VicGrid, the state's transmission planner, is spearheading a 55-kilometre, 500-kilovolt line from a coastal hub near Giffard to Loy Yang, designed to handle initial output by 2032.

What changed recently? In February 2026, developers Ørsted and JERA Nex BP submitted federal environmental referrals under the Environment Protection and Biodiversity Conservation Act for projects totalling up to 3.8 gigawatts. This moves them into formal assessment, aligning with VicGrid's tender process, where three consortia were shortlisted in October 2025 for building the infrastructure. A partner appointment is slated for later in 2026, with a preferred route announcement imminent in early 2026.

The real-world impacts are stark. Gippsland's communities, long reliant on coal, stand to gain 15,000 construction jobs and 7,500 ongoing roles in a nascent industry. Yet farmers and residents face disruptions: the line could cross prime agricultural land, altering landscapes and operations. Biodiversity hotspots, including wetlands and native habitats, risk harm, though route refinements have avoided townships and state parks like Holey Plains. Traditional Owners, such as the Gunaikurnai Land and Waters Aboriginal Corporation, are consulted to mitigate cultural heritage effects.

Concrete stakes include tight deadlines—the Environment Effects Statement (EES), a rigorous impact assessment, enters public review in 2026-2027, with approvals needed before major construction from 2027 to 2030. Costs, while not fully disclosed, run into billions, shared among developers to keep electricity prices in check. Inaction could exacerbate energy shortfalls, with Victoria targeting net-zero emissions by 2050; missing the 2032 milestone might force reliance on interstate power or delay coal phase-outs.

Non-obvious angles lurk beneath the surface. The decision to use overhead lines saves money but amplifies visual blight, a sore point in scenic coastal areas. Earlier, in 2023, regions west of Wilsons Promontory were scrapped due to unacceptable environmental risks, shrinking the viable zone. Tensions simmer between urgent renewable goals and local priorities: while the Gippsland Shoreline Renewable Energy Zone limits onshore infrastructure to specific beaches, it still sparks debates over tourism and fishing impacts. Surprising data shows Gippsland's wind could power over 1.5 million homes, but regulatory reforms are underway to streamline transmission planning amid community pushback elsewhere in Australia.