Early works to begin on VIC-NSW Interconnector Project

The Australian Energy Market Operator (AEMO) will be carrying out early works on the Victoria-New South Wales Interconnector (VNI) West project as the Victorian Government accelerates the delivery of this vital transmission line development. 

The proposed transmission line is expected to boost the State’s electricity import and export capacity with New South Wales by over 1800MW, which helps secure the supply of reliable electricity while bringing down energy prices. 

The VNI West project will deliver a new high-capacity 500kV double-circuit overhead transmission line that runs from Victoria to New South Wales. It will connect the Western Renewables Link via a new terminal station located north of Ballarat with EnergyConnect at a new substation in Dinawan – between Jerilderie and Coleambally in New South Wales. 

The project will also include the construction of the Project EnergyConnect transmission lines from the Dinawan substation to Wagga Wagga in New South Wales at a 500kV specification rather than the previously proposed 330kV. 

In addition, VNI West is going to be connected to the HumeLink project at the new Gugaa substation to enable the project to be utilised at its full potential. 

“As ageing coal-fired generators retire and become increasingly unreliable, Victoria is enabling a once-in-a-generation transformation of our clean energy grid and delivering thousands of jobs along the way. 

“Bringing forward VNI West means we can connect cheaper, more reliable renewable energy sooner, putting downward pressure on energy prices,” Minister for Energy and Resources Lily D’Ambrosio said. 

The development of transmission projects such as VNI West are key to cheaper and more reliable renewable energy sources and storage capacity. Such projects also ensure the reliability of energy supply during periods of high demand. 

VNI West is expected to unlock 1,900 to 5,000MW of renewable energy projects in Victorian Renewable Energy Zones (REZs), furthering the market for the State’s offshore wind and providing access to projects in New South Wales like Snowy 2.0. 

Under the National Electricity (Victoria) Act 2005 (NEVA), an Order has been issued to enable AEMO to immediately get preparatory and planning works underway. 

The Order will, in turn, accelerate key development activities such as stakeholder and community engagement, land use planning, detailed engineering design, and cost estimation. This will also allow processes like the Environmental Effects Statement (EES) to begin later this year. 

The AEMO Victorian Planner (AVP) will also consult on alternative options for the project, including a connection point between VNI West and the Western Renewable Link (WRL), responding to feedback provided by local communities, Traditional Owners and regional stakeholders. 

The additional analysis and consultation will enable AEMO to assess and pick the best option for the project. 

“AVP and Transgrid will continue to undertake genuine and meaningful engagement with stakeholders in line with the regulatory investment test. 

“The Government’s announcement allows the consideration of alternative project options, leveraging broader stakeholder feedback, and brings forward project early works, such as engagement and consultation on planning and environmental approvals. 

“This improved engagement will better reflect the needs of local communities, minimise project delivery and timing risks, and generally improve electricity reliability for all Victorians,” AVP Group Manager Nicola Falcon said. 

The VNI Project is being delivered as part of the nation-leading initiative to lower emissions with a renewable energy target of 65 per cent by 2030 and 95 per cent by 2035. 

Not only will the project help drive down energy prices, but it will also deliver up to 59,000 jobs. 

Source: Premier of Victoria – Media Centre; Victoria State Government – Energy, Environment and Climate Action; AEMO (1, 2)