A New Business Energy Landscape in Victoria
Victoria is making a significant shift in its energy infrastructure. The state government has unveiled a $4.3 billion investment in transmission upgrades and announced the creation of seven renewable energy zones (REZs). For Victorian businesses, this means change is coming—both in where energy comes from and how it’s delivered.
While these changes signal progress toward net-zero emissions, they also present new challenges for commercial energy users. From rising grid costs to questions about supply reliability during the transition, businesses must now take a closer look at their electricity strategies.
“Change is coming, and energy costs will shift with it. Smart businesses will plan ahead,” says Nick Halaris, MD of Electricity Brokers.
Understanding Victoria’s $4.3 Billion Energy Transition Plan
In early July 2025, the Victorian Government announced a detailed plan to replace ageing coal infrastructure with renewable energy. This includes the development of seven Renewable Energy Zones and four new high-voltage transmission lines:
- Western Victoria REZ
- Murray River REZ
- Central North REZ
- Ovens Murray REZ
- South West REZ
- Gippsland REZ
- Greater Melbourne REZ
These REZs aim to generate up to 95% of Victoria’s electricity from renewable sources by 2035 (Source: Renew Economy)
Transmission upgrades are essential to connect these zones to demand centres across the state. EnergyCo and VicGrid, the agencies leading the rollout, will oversee construction, landholder negotiations, and community consultation.
The scale and cost of this plan will be shared across all energy users through network charges, which form a growing portion of electricity bills.
What This Means for Commercial Electricity Prices
The transition to renewable energy and new infrastructure won’t come free. Transmission costs are already increasing. According to the Australian Energy Regulator (AER), network charges made up 43% of a typical business electricity bill in Victoria in 2024. This percentage is likely to rise as new projects roll out.
Wholesale prices may stabilise over time with increased renewables, but in the short term, costs will remain volatile due to:
- The closure of coal-fired plants like Loy Yang A (2035)
- Grid congestion during construction phases
- Integration costs for new technologies
For businesses, this means higher exposure to fluctuating tariffs unless long-term procurement strategies are in place.
The Role of Electricity Brokers in Times of Change
Electricity brokers play a key role in helping businesses navigate uncertain energy markets. From tariff analysis to future price forecasting, brokers offer insights that help mitigate risk.
Key services provided by experienced brokers include:
- Monitoring tariff trends
- Comparing fixed and flexible electricity plans
- Running procurement tenders with major retailers
- Identifying opportunities for solar, storage or demand response
“An experienced broker doesn’t just chase cheap rates. They forecast change and help clients stay two steps ahead,” says Nick Halaris.
By working with an electricity broker, Victorian businesses can secure favourable rates and understand how changes in infrastructure impact their bottom line.
Renewable Zones and Business Opportunity
The establishment of renewable energy zones offers more than just cleaner electricity. For some industries, it brings new investment, job creation, and even proximity-based incentives.
Businesses located within REZs may benefit from:
- Better grid reliability in renewables-focused regions
- Potential access to localised power purchase agreements (PPAs)
- Faster connection approvals for commercial solar
However, with construction noise, land acquisition, and regulatory changes, some businesses may experience temporary disruption.
Understanding how your site is affected requires early engagement with both energy consultants and government agencies.
Tips for Businesses Preparing for Victoria’s Energy Transition
- Audit Your Current Electricity Usage
- Know your peak demand, consumption profile and tariffs.
- Explore Long-Term Contracts
- Lock in favourable pricing before network charges increase.
- Evaluate On-Site Renewables
- Solar and battery storage can reduce grid dependency.
- Engage with an Electricity Broker
- Ensure you understand both retail and network-side impacts.
- Plan for Disruption
- Be prepared for works-related outages and re-zoning impacts.
The sooner you begin planning, the more leverage you’ll have over your future costs.
National Context: How Victoria Compares
Victoria’s REZ and transmission rollout mirrors similar strategies in NSW and Queensland. The difference is speed and ambition.
Victoria aims for 95% renewables by 2035—one of the most aggressive targets in Australia. NSW, in contrast, has earmarked 50% renewables by 2030.
According to AEMO’s 2024 Integrated System Plan, coordinated renewable development is essential to avoid blackouts and cost spikes as coal exits the grid source.
Businesses in Victoria may face higher short-term costs but will benefit from faster access to clean, locally generated energy once infrastructure is built.
A Time to Act
Victoria’s energy transition is well underway, and the pace is accelerating. For business electricity users, this isn’t just about sustainability—it’s about cost, reliability and long-term planning.
With transmission projects underway and coal on the way out, it’s critical that businesses work with trusted advisors to manage risk and identify opportunity.
Electricity brokers like Electricity Brokers can provide the guidance needed in this complex and evolving environment.
Want more info on how to navigate the business energy landscape? Contact us or just give us a call!
