The final report on the regulatory investment test for the Victoria – New South Wales Interconnector West (VNI West) was issued today by AEMO Victorian Planning (AVP) and Transgrid.
According to Transgrid, this concludes the phase of the regulatory process that began in 2019 and involved hundreds of stakeholders and over 600 written submissions.
The Project Assessment Conclusions Report (PACR) outlines the VNI West’s preferred alternative as well as a geographic region of interest. The option is expected to generate roughly $1.4 billion in net market benefits, resulting in considerable savings for consumers through avoided generation, storage, and fuel expenses, as well as cost reductions for transmission expansion in renewable energy zones (REZs).
The preferred option will connect the Dinawan substation in New South Wales (under construction as part of Transgrid’s approved ISP project EnergyConnect) to Bulgana in Victoria, passing through the South West New South Wales, Murray River, and Western Victoria REZs before connecting to the Western Renewables Link.
Prior to the publication of the PACR, Victorian Minister for Energy and Resources Lily D’Ambrosio announced today a Ministerial Order under the National Electricity (Victoria) Act 2005 to identify the preferred option for the Victorian portion of VNI West and to progress work to identify a final route through consultation with landowners, Traditional Owners, and community stakeholders.
AVP and Transgrid recently conducted a six-week community consultation on alternatives for VNI West possibilities, receiving views and responses from local communities and stakeholders. According to Transgrid, this essential feedback has altered where VNI West crosses the Murray River, with the final option modified to accommodate stakeholder comments indicating limits surrounding culturally and environmentally significant places, as well as irrigated agriculture zones.
AVP Group Manager Nicola Falcon stated that extensive engagement and stakeholder feedback had contributed to the recommended alternative, which maximises benefits for power customers while unlocking Victoria’s renewable energy potential.
“We thank all the farmers, community groups, councils and Traditional Owners who have contributed to the consultation, which will continue as the transmission line design is finalised,” Falcon said.
Falcon explained that the feedback collected has aided in the identification of a preferred alternative for the vital transmission line – a version of the previously proposed option – that provides the highest advantages to customers and increases energy generation from three REZs in Victoria and New South Wales.
“By crossing the Murray River further north-west, the project can also avoid some sensitive cultural areas and prime irrigation land identified in feedback from local communities and avoid the habitat of the endangered Plains-wanderer,” she added.
Transgrid Executive General Manager of Major Projects Gordon Taylor said Transgrid will now collaborate with communities, Traditional Owners, and others to modify VNI West’s NSW component. Taylor noted that the transmission system will change the National Electricity Market and allow for substantial energy cooperation with Victoria.
“We are fully committed to reducing impacts wherever feasible and providing local communities, Traditional Owners and businesses with opportunities to collaborate with us on the development of our broader community investment and benefits program which includes local content and employment opportunities,” Taylor added.
VNI West’s wide area of interest, spanning 5 to 50 km in breadth, will be reduced to a corridor and then an indicative route based on additional evaluations and significant stakeholder input. This involves direct discussion with landowners on land use, access, and compensation details.
Compensation will cover any effects on land value and usage as determined by an expert valuer. Compensation is supplemented by payments to landowners for hosting transmission infrastructure.
Future project operations in the areas will include considerable community, Traditional Owner, and stakeholder engagement to ensure that all stakeholders along the broad transmission corridor have the chance to participate in the creation of the final VNI West route.
