Victoria’s offshore wind investment pathway takes shape
Victoria has taken another step towards establishing its offshore wind industry, with the preferred transmission route identified to connect the first offshore wind projects off the Gippsland coast to Victoria’s electricity grid.
The approximately 60-kilometre route will run between the Loy Yang Power Station switchyard and a proposed new terminal station at Giffard, providing a corridor for shared transmission infrastructure.
For investors and businesses considering opportunities across Victoria’s emerging offshore wind sector, the transmission milestone marks further progress in developing the infrastructure needed to support the industry.
A major investment opportunity
Offshore wind is expected to drive more than $20 billion of investment into Victoria, with the first auction alone expected to deliver a $3.1 billion boost to Gippsland communities.
Australia’s first offshore wind auction launched in August 2026 and will deliver the first 2 gigawatts (GW) of offshore wind, enough to power around 1.5 million homes.
The industry is expected to create thousands of jobs while supporting Gippsland’s ongoing role as an energy powerhouse.
Transmission infrastructure progresses
The preferred transmission route is around 60 kilometres long and approximately 200 metres wide. It will provide the corridor for shared transmission infrastructure connecting offshore wind generation to the existing electricity grid.
VicGrid has worked with landholders, communities and stakeholders since 2023 to refine the route, alongside environmental, cultural heritage and technical studies.
VicGrid is now meeting directly with landholders within the preferred route. Discussions include indicative tower locations, likely construction activities and the indicative transmission easement.
These discussions will inform the project’s reference design.
The reference design will be assessed through the Environment Effects Statement (EES), with the community able to view the design and make submissions when it is exhibited in early 2027.
Final tower and easement locations will continue to be refined through further technical work and consultation.
Supporting Victoria’s offshore wind industry
The transmission work is progressing alongside the Victorian Government’s first offshore wind auction, which is supporting the development of Victoria’s first 2 GW of offshore wind generation.
Victoria has some of the best offshore wind resources in the world. Developing this resource will add more renewable energy to the grid as ageing coal-fired power stations retire.
For investors, the development of generation, transmission and supporting infrastructure is establishing the foundations for a new offshore wind industry in Victoria, with Gippsland at its centre.
Community sessions on the preferred transmission route will be held throughout October in Willung, Giffard West and Rosedale, as well as online.
Explore Victoria’s energy investment opportunities and connect with Invest Victoria to discuss how we can support your investment plans.
