A combination of next-generation battery storage, upgrades to the current network, and old-school synchronous condensers, or syncons, to stabilise it all could be added to the grid, according to the proposal.

The plan is a response to the state government's directions paper on new Renewable Energy Zones, which calls for a massive amount of new renewable energy projects.

The solar energy produced in the Bendigo region is among the targets for the work.

According to a Powercor media release, the plan would "unlock 1.3 gigawatts of capacity on the existing network, and improve reliability", by installing syncons and batteries across the existing network.

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The company highlighted this plan would not involve new easements or powerlines for the distribution network - the media release states it will "ensure no additional impacts on the visual amenity of communities or local agricultural or natural environments".

It would upgrade "key parts of the 66 kilovolt network" to allow new wind and solar projects to connect, with three syncons proposed for Ballarat and Bendigo in the first phase to "ensure system strength on the sub-transmission network".

The second phase would involve installing batteries at existing zone substations, similar to the Ballarat Energy Storage System at Warrenheip which has been running since 2018 - batteries help smooth out irregularities in electricity generation.

General manager Mark Clarke said in a statement it will take a "whole-of-network" solution to unlock the targeted 10GW of renewables capacity quickly.

"Connecting renewable energy at the distribution network level is fast, simple and generates greater benefits more broadly spread out at the local level," he said.

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"The real opportunities come from creating jobs and network capacity that will benefit a large number of diverse communities."

The company estimated the project would cost "$93 million per gigawatt of capacity unlocked".

The distribution upgrade plan is separate to AusNet's Western Victoria Transmission Network Project, which has faced immense opposition from farmers and landowners, and is currently in the middle of its Environmental Effects Statement survey.

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