The Victoria to New South Wales Interconnector West, a critical transmission line project, has secured a significant financial boost.
The boost will allow the project, also know as VNI West, to commence early works in regional New South Wales.
Transgrid’s security holders have committed nearly $700 million in equity, demonstrating strong support for the nation-critical project.
The Clean Energy Finance Corporation (CEFC) has also provided $140 million in concessional financing support under the Federal Government’s $20 billion Rewiring the Nation (RTN) program, recognising the project’s importance to the National Electricity Market.
Transgrid CEO Brett Redman said VNI West is essential to the delivery of Australia’s energy transition, meeting the Commonwealth and NSW Governments’ net zero targets and providing consumers with access to cheaper renewable energy.
“We are proud to be progressing the development of this major new 500kV infrastructure in NSW. The new transmission line will connect renewable energy zones in NSW and Victoria to the national electricity grid, delivering cleaner and cheaper electricity to families and businesses,” he said.
“The project is forecast to deliver around $1.4 billion in net market benefits. It will also make it easier to share electricity between NSW and Victoria, improving reliability and security of supply in both states.
“Importantly for regional Australia, this project will generate more than 1000 jobs and provide millions of dollars worth of community investment and benefits.”
The Australian Energy Regulator approved the VNI West Contingent Project Application (CPA Stage 1) in May, outlining the preliminary consumer savings and estimated costs for early works and delivery of the critical transmission line.
With the secured funding, Transgrid can now progress early works, including securing long-lead equipment such as transformers, reactors, conductors, and steel.
Additionally, detailed design of substations and transmission lines, market engagement to identify preferred construction contractors, environmental impact assessments, and submissions will be undertaken.
Transgrid will also focus on community and stakeholder engagement, including assessing and progressing negotiations to acquire substation and transmission line easements.
VNI West, along with major transmission projects HumeLink and EnergyConnect, is set to reshape the National Electricity Market, enabling access to more affordable, reliable, and sustainable electricity for millions of Australians.
The NSW Government recently recognised VNI West as Critical State Significant Infrastructure, deeming it essential to the state for economic, social, or environmental reasons. The Australian Energy Market Operator has also identified VNI West as an actionable project in the recently released 2024 Integrated System Plan.
The Victorian section of the project is currently being developed by Transmission Company Victoria, a wholly-owned subsidiary of the Australian Energy Market Operator (AEMO).
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