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Project

Victoria to NSW Interconnector West

PROJECT STATUS

Announced

The Victoria to NSW Interconnector West (VNI West) is a new high-capacity 500 kV double-circuit line to connect Western Renewables Link (from Bulgana) with Project EnergyConnect and HumeLink (at Dinawan) via a new substation near Kerang.

Key Dates

Dec 2026	Expected Construction Commencement
Dec 2028	Expected Construction Completion

Financing

; ; ;

Equity Finance:	Transgrid security holders (early works)
Debt Finance:	Federal Government
Debt Finance:	Clean Energy Finance Corportation

PROJECT HISTORY

Dec 2019	In December 2019, AEMO and TransGrid commenced a joint RIT-T which aims to assess the technical and economic viability of expanding interconnector capacity between Victoria and New South Wales, and realise net market benefits.
Jul 2020	AEMO's 2020 ISP identified two possible routes for the transmission line: - a new substation north of Ballarat to Bendigo to Shepparton to Wagga Wagga, and - a new substation north of Ballarat to Kerang to Darlington Point (or Dinawan) to Wagga Wagga. The ISP estimates that the Shepparton Route has a cost of between $1.2 billion and $2.2 billion, with a modelled cost of $1.73 billion, including early works up to $150 million. The cost for the Kerang Route is estimated by the ISP to be between $1.7 billion to $3.1 billion, with a modelled cost of $2.4 billion, including early works up to $200 million.
Sep 2020	The Federal Government announced that its intention to work with state governments to accelerate the project, alongside Project EnergyConnect and Marinus Link, through a combined program with funding of 'up to' $250 million.
Oct 2020	The Federal Government announced in its 2020-21 Budget that it will underwrite support for early works for the project.
Mar 2021	AEMO announced that the release of the Project Assessment Draft Report (PADR) for the project will be delayed from March until December. The PADR will include the project's cost-benefit analysis as required by the Regulatory Investment Test for Transmission.
Apr 2022	The Federal Government released a Pre-election Economic and Fiscal Outlook (PEFO) which committed $76 million in underwriting for the project.
Jul 2022	Transgrid released the Project Assessment Draft Report (PADR) for the project for public consultation, closing on 9 September, as part of the Regulatory Investment Test for Transmission (RIT-T) process. It identifies VNI West as the preferred option for reinforcement of the transmission network.
Oct 2022	The Federal Government announced that Rewiring the Nation, through the Clean Energy Finance Corporation, would provide a concessional loan of $750 million for the project.
Feb 2023	The Victorian Government issued a Ministerial Order under the National Electricity (Victoria) Act 2005, enabling the Australian Energy Market Operator to immediately carry out preparatory and planning works.
Mar 2023	Transgrid announced it secured $385 million in underwriting from the Federal Government as part of the Rewiring the Nation program to finance critical transmission supplies for VNI West, HumeLink and Project EnergyConnect. Transgrid also announced that procurement for these three projects will be bundled into one procurement program.
May 2023	AEMO Victorian Planning and Transgrid released the Project Assessment Conclusion Report (PACR) for the project's Regulatory Investment Test for transmission (RIT-T). The PACR identifies Option 5A as the preferred project route and estimated the cost at $3.5 billion.
Aug 2023	Transgrid signed a $100 million contract with ZTT Australia, a subsidiary of manufacturing company ZTT International, who will supply 17,500 kilometres of high voltage conductors to Transgrid as part of it’s Powering Tomorrow Together program. Under this program, Transgrid has bundled procurement for critical transmission equipment and materials for the HumeLink, Victoria to NSW Interconnector West and Project EnergyConnect projects together.
Dec 2023	AEMO's draft 2024 Integrated Systems plan lists the project as an 'actionable' project and provided an updated cost estimate of $3.6 billion ±30 per cent. It listed the in service timing to occur by December 2028 and full capacity timing to occur by December 2029.
May 2024	The Australian Energy Regulator (AER) released their cost determination for the project, updating the estimate to $3.97 billion.
Aug 2024	Transgrid announced that an extra $700 million was being provided in equity to the VNI West project from their security holders, in addition to $140 million in concessional financing support from the Clean Energy Finance Corporation under the Federal Government's Rewiring the Nation program. The financing was provided to assist Transgrid in progressing early works for the project.

Estimated Total Cost

(2023)

Sector

Energy

Procurement approach

Unconfirmed |

Location

New South Wales | Victoria |

Resources

Government resources

AEMO 2018 ISP
AEMO 2018 ISP Insights
AEMO 2020 ISP
RIT-T Project Specification Consultation Report - December 2019
AEMC: Last Resort Planning Power - 2018
2022/04/11 - Pre-election Economic and Fiscal Outlook
Project Assessment Conclusion Report

Media releases

2023/02/19 (Victorian Government)
2022/10/19 Rewiring the Nation announcement
2022/07/29 Project Assessment Draft Report published
2023/02/21 (AEMO) Project planning accelerated under National Electricity (Victoria) Act 2005
2023/02/21 (Transgrid) Project planning accelerated
2023/03/02 Federal underwrite of $385 million
2023/05/27
2023/08/11 Transgrid and ZTT sign $100 million supply contract
2024/02/05 - Stage One Contingent Project Application
2024/08/28 - Transgrid securityholder financing

Other

Draft 2024 Integrated Systems Plan

Project pages

AEMO
Transgrid
Transmission Company Victoria

Major Contract

VNI West - Victorian section

PROJECT STATUS

Under Procurement

The Victorian section of the VNI West is proposed to be approximately 240 kilometres of 500-kilovolt transmission line infrastructure and connect the Western Renewables Link at Bulgana and the Kerang Power Station on the Victoira/NSW Border.

Key Dates

2025	Expected Contract Award
2026	Expected Construction Commencement
Dec 2028	Expected Construction Completion

Financing

;

Debt Finance:

Clean Energy Finance Corporation (early works - Vic section)

Procurement

Procuring Agency:

The Australian Energy Market Operator (AEMO) and Transmission Company Victoria (TCV)

PROJECT HISTORY

Oct 2023	TCV released its Report on the Draft Corridor for VNI West. The draft corridor had a width of two kilometres and runs through four main sections of Victoria.
Jul 2024	AEMO opened the Registration of Interest process to find a delivery partner for the Victorian section of the VNI West project.
Sep 2024	The Clean Energy Finance Corporation committed $120 million in concessional finance from the Federal Government’s Rewiring the Nation Fund to the Australian Energy Market Operator (AEMO). AEMO will use the financing to progress early works for the Victorian component of the Victoria to NSW Interconnector West.
Oct 2024	Transmission Company Victoria released the preferred easement for the Victorian section of the VNI West project. The 70-metre preferred easement, which is subject to further public consultation and Environment Effects Statement assessment, will inform the route’s final alignment design.
Nov 2024	AEMO commenced the Invitation to Tender (ITT) phase for a development partner for the Victorian section of the VNI West project. AEMO selected a group of organisations from the Registration of Interest process to participate in the ITT.
Feb 2025	The Essential Services Commission granted an electricity transmission licence to Transmission Company Victoria, enabling it to oversee development of the Victorian component of the Victoria to NSW Interconnector West.
Mar 2025	The project was included in the Federal Government's inaugural Renewable Energy Priority List. The Priority List aims to provide coordinated support through Federal, state and territory regulatory and environmental approval processes on a case-by-case basis and provide a 'faster to yes, faster to no' approach to regulatory approvals.

Estimated Total Cost

(2023)

Sector

Energy

Procurement approach

Unconfirmed |

Location

Victoria |

Resources

Government resources

Preferred Easement Report
TCV VNI West Fact Sheet
Draft Corridor Report
National Renewable Energy Priority List

Media releases

2024/11/15 - Invitation to Tender
2024/07/25 - Registrations of Interest
2024/09/18 - CEFC commitment
2024/10/30 - Preferred easement

Other

Transmission Company Victoria electricity transmission licence

Major Contract

VNI West - NSW section

PROJECT STATUS

Announced

The NSW section of VNI West is approximately 235 kilometres of 500 kilovolt transmission line between the Kerang Substation and connecting with Project EnergyConnect at the Dinawan power station in NSW.

The project would also include:

augmentation of an 11-kilometre section of an existing transmission line between the Wagga Wagga substation and the new Gugaa substation proposed as part of the HumeLink project
expansion of the Dinawan 330kV substation to include two 330kV bays and a 500kV switchyard
connection and line diversion works of the existing transmission lines at the Dinawan, Wagga Wagga, and new Gugaa substations to allow for connection, and
ancillary works including upgrades to existing lines, temporary and permanent access roads, and communication facilities.

Key Dates

Dec 2026	Expected Construction Commencement
Dec 2028	Expected Construction Completion

Financing

;

Debt Finance:

Clean Energy Finance Corporation (early works - NSW section)

Procurement

Procuring Agency:

Transgrid

PROJECT HISTORY

Dec 2023	Transgrid submitted Stage 1 (Early Works) Contingent Project application to the AER. The application identifies that total capex for early works on the NSW section are forecast at $1.1 billion. This includes $793 for procurement activities, $98 million for acquiring transmission line easements, and $206 million for labour and indirect capex. The expected completion date for the early works is 2026.
Jan 2024	The Draft Route Report for the NSW section of VNI West was released for consultation, closing 4 March.
Feb 2024	The Australian Energy Regulator commenced public consultation on the Stage One Contingent Project Application for early works of the project. The document included forecast capital costs for Stage One of $1.1 billion. The application was submitted by Transgrid in December 2023, with responses closing 1 March 2024.
Mar 2024	Transgrid has released its Preferred Route Report for the NSW component of the Victoria to NSW Interconnector West project. The Report responds to feedback on the Draft Route Report released in January, and includes modifications to move the proposed transmission line further north of the Moulamein township and widen the route by up to three kilometres at the eastern end near Dinawan.
May 2024	The Australian Energy Regulator (AER) released their cost determination for recovery of Stage One early works costs - NSW Section. Transgrid can recover $949 million over four years from FY2022-23 to FY2025-26. The determination also included a cost update for the total project of $3.97 billion.
May 2024	Transgrid published a Scoping Report for the NSW section project, requesting the Secretary's Environmental Assessment Requirements (SEARs).
Aug 2024	Transgrid published an Addendum Scoping Report for the NSW section of the project, which adjusted the proposal corridor, but did not change conclusions presented in the initial Scoping Report.
Oct 2024	The Planning Secretary’s Environmental Assessment Requirements were published for the project.
Oct 2024	Transgrid has identified its proposed transmission line corridor for the NSW component of VNI West between the Dinawan substation, currently under construction as part of Project EnergyConnect, and the Murray River, north of Kerang. Following consultation, the 200-metre wide corridor will be refined to a 70-metre final easement where the transmission line will be located.
Mar 2025	The project was included in the Federal Government's inaugural Renewable Energy Priority List. The Priority List aims to provide coordinated support through Federal, state and territory regulatory and environmental approval processes on a case-by-case basis and provide a 'faster to yes, faster to no' approach to regulatory approvals.

Estimated Total Cost

(2023)

Sector

Energy

Procurement approach

Unconfirmed |

Location

New South Wales |

Resources

Government resources

VNI West Preferred Route Report
Proposed transmission line corridor
SEARs
Draft Route Report
Transgrid NSW early works contingent project application to AER
National Renewable Energy Priority List