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A month after damaging storms tore down one of Victoria’s major transmission lines, the state government will today introduce laws taking control of planning for new routes and locking in annual payments of $8000 per kilometre to farmers and landowners who host towers.

In February, wild winds brought down six transmission towers west of Melbourne and triggered the shutdown of the state’s biggest coal-fired power station.

Energy Lily D’Ambrosio will introduce a bill in parliament setting up VicGrid, an agency which will control all planning and consultation on future transmission lines in the state. Only projects that have been overseen by VicGrid can be put to tender.

The move comes after a lengthy campaign from farmers in Victoria’s west who have opposed the routes for the Western Renewables Link and a second connection at the border of Victoria and New South Wales.

Both have been proposed to better connect the grid to major renewable energy zones and the Australian Energy Market Operator estimates Australia will need 10,000 kilometres of new and upgraded transmission by 2050.
The bill will also lock in payments to landowners who host energy infrastructure.

They will receive $200,000 per kilometre of new transmission hosted which will be indexed and paid over 25 years.

A second piece of legislation will alter public land rules to allow offshore wind developers to obtain long-term tenure on areas needed to support their projects.

“Victoria is undergoing a once-in-a-generation energy transition. We’re making the community central to this and doing things differently to make sure it’s done right,” D’Ambrosio said.

“We’re making sure energy infrastructure is delivered in a way that reduces impacts and provides benefits for the community and encourages investments that will keep the lights on and secure Victoria’s energy future.”