Western Victoria renewable energy hub takes shape around Ballarat

The Western Victoria Renewable Energy Zone — which encompasses the Grampians, Pyrenees, and Central Highlands regions that ring Ballarat — has emerged as Australia's most active renewable energy development corridor, with more than 4,500 megawatts of wind and solar generation capacity either operational, under construction, or in advanced development approval within 150 kilometres of Ballarat. The development activity is generating economic benefits for the Ballarat economy through procurement for construction services, professional services, and the operational jobs that wind and solar facilities create over their 25-30 year operating lives.

The Australian Energy Market Operator's latest generation adequacy report identified Western Victoria as the highest-priority development zone for the national electricity market's renewable energy transition, given the combination of high-quality wind resources, available transmission connection points, and relatively low environmental and land use conflict compared to other potential development corridors.

Ballarat businesses have been among the primary beneficiaries of the development activity, with the civil engineering, electrical contracting, project management, and environmental services businesses in the city winning contracts on multiple wind and solar projects in the surrounding region. The local content preference requirements in some project approval conditions have directed procurement to regional businesses that would not have received contracts in a purely competitive process.

The community benefit funds associated with the major wind farm projects in the region have provided grants to Ballarat and regional community organisations for facility upgrades, environmental programs, and social welfare projects. The accumulated community benefit funding from the projects that are either operational or approaching construction commencement in the region is estimated at more than $2 million per year once the full development pipeline is operational.

Grid connection for the Western Renewables Link — the transmission project connecting the zone to the Melbourne and national grid — is being fast-tracked by VicGrid, with the first transmission line section expected to be energised in the 2026-27 year.

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