Council calls for changes to Central North Renewable Energy Zone

In Summary

An independent review commissioned by Council has identified major concerns with the proposed eastern extension of the Central North Renewable Energy Zone, including impacts on high‑value agricultural land and limited prior consultation.
The review found the extension into Pine Lodge, Cosgrove and Dookie covers some of Victoria’s most productive cropping land, with yields up to 120 per cent above state averages and land values exceeding $19,000 per hectare.
Council has submitted a series of recommendations to VicGrid, including refining REZ boundaries, protecting high‑value farmland and cultural heritage sites, undertaking environmental assessments, and improving community engagement.
Community and stakeholder consultation undertaken for the review showed widespread dissatisfaction with the eastern REZ due to lack of early engagement and uncertainty about potential impacts.

The review, commissioned by Council and undertaken by Sequana, assessed the Victorian Transmission Plan’s revised REZ boundaries and found that the eastern extension, covering Pine Lodge, Cosgrove, and Dookie, includes some of Victoria’s most productive cropping land. Wheat and canola yield in this area are up to 120 per cent above state averages, and land values exceed $19,000 per hectare.

The Central North REZ was established under the Victorian Transmission Plan (VTP) to coordinate renewable generation and transmission development across Victoria. Initially covering areas west of Shepparton, the REZ was reconfigured in the 2025 VTP following consultation, which resulted in the reduction of the western section to avoid irrigated farmland and biodiversity-sensitive areas.

During this review, an eastern extension which includes Pine Lodge, Cosgrove, and Dookie was introduced without prior public consultation. This new section stretches eastward within the Greater Shepparton local government area (into the Benalla LGA) and includes land of high agricultural value and cropping yield.

Council officers have since made a submission to VicGrid outlining its concerns, while requesting VicGrid to:

Refine the eastern REZ boundaries to exclude high-value farmland, flood-prone areas, and land with significant infrastructure investment.
Remove irrigated land east of McEwen Road from the western REZ.
Engage Traditional Owners to identify and protect cultural heritage sites.
Conduct detailed environmental assessments, including impacts on nature reserves.
Clarify assumptions in Scenario 2 of VicGrid’s modelling, particularly regarding wind generation and infrastructure needs.
Implement a targeted two-month community engagement program for the eastern REZ.

Council, supported by Sequana, undertook community and stakeholder engagement to inform its submission to VicGrid. The process included targeted interviews and an online survey that received over 200 responses.

Participants were questioned regarding awareness, perceived impacts, and expectations surrounding VicGrid’s REZ planning, with community consultation revealing widespread dissatisfaction with the introduction of the eastern REZ, primarily due to the lack of prior consultation and limited clarity regarding project implications.

Landholders expressed strong concern around the loss of productive farmland, landscape change, and perceived inequities in benefit distribution. The review stated that the lack of engagement significantly undermined community confidence and recommended a more transparent and inclusive consultation framework moving forward.

Mayor, Councillor Shane Sali, said Council’s submission to VicGrid aims to balance Victoria’s renewable energy goals with Greater Shepparton’s agricultural and community values.

“The transition to renewable energy must not come at the cost of our region’s most productive farmland or without proper consultation. We’re calling for a fair, transparent process that respects local priorities,” he said.

“Residents told us they feel blindsided by the eastern REZ. They are frustrated, and there is distrust, and uncertainty about what this means for their livelihoods and our region’s landscape. We brought this to the attention of our community, and we are now calling on VicGrid to engage meaningfully with landholders before any decisions are finalised.”

The Sequana review noted that renewable energy can coexist with agriculture if projects are strategically located on lower-productivity land.

Deputy Mayor and Pine Lodge Ward Councillor, Cr Geoff Akers, said Council will continue to advocate for boundary refinements and transparent engagement to ensure the REZ delivers environmental benefits without undermining Greater Shepparton’s agricultural economy.

“The review shows that the eastern REZ was introduced without adequate consultation and contradicts VicGrid’s own principles of avoiding high-value agricultural land. We need a consistent approach that protects our farming base while enabling renewable energy,” he said.

“Our region’s land isn’t just a business; it is many residents’ livelihood and part of the food supply chain. Losing productive ground to large-scale energy projects would have a profound impact on the agriculture industry. Renewables need to go where they won’t destroy prime farmland.”

Read Sequana’s full Central North REZ Review here