The Victorian Labor government has cancelled the proposed Central-North renewable energy zone (REZ) on the grounds that the region already hosts “significant renewable energy” projects, on a grid with limited capacity for more.

The Central-North REZ was the last undeclared zone of seven, and split into two areas between Bendigo and Glenrowan along a 220 kilovolt (kV) power line.

But a statement from Vicgrid – the body assigned the job of planning and developing the states REZ’s and the transmission lines to support them – says there isn’t enough network capacity in the area to justify it going ahead.

“With no new transmission projects planned and many generation projects already progressing in the area, VicGrid has determined there is limited capacity on the grid to support a renewable energy zone,” the statement said.

There are already a number of solar projects wanting to connect in the area, and these will likely take up the last grid capacity before the state switches on the REZs next year, Vicgrid says.