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.
It is intended to increase transfer capacity between New South Wales and Victoria.
The preferred route for the NSW half of the project is a 230-kilometre section that runs in a north-south direction from the NSW/Victoria border towards the west of the Moulamein township before turning east north of the town of Moulamein. The route then travels in a generally east-west direction to the Dinawan substation, following existing infrastructure, such as Maude Road, Wanganella Moulamein Road, Mabins Well Road, and existing property boundaries.
The scope of the works for the NSW section of the project includes:
- around 235 kilometres of new 500kV double-circuit overhead transmission line between the NSW/Victoria border and the Dinawan substation
- 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.
The preferred route for the Victorian section has not been identified.
Key Dates
| 2026 | Expected Construction Completion: Stage One early works |
| Dec 2028 | Expected Construction Completion |
Financing
| Equity Finance: | Transgrid security holders (early works) |
| Debt Finance: | Federal Government |
| Debt Finance: | Clean Energy Finance Corportation |
| Debt Finance: | Clean Energy Finance Corporation (early works - NSW section) |
| Debt Finance: | Clean Energy Finance Corporation (early works - Vic section) |
Procurement
| Procuring Agency: | TransGrid |
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 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. |
| Dec 2023 | Transgrid submits Stage 1 (Early Works) Contingent Project application to the AER. The application identifies that total capex for early works on the NSW section of 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 on 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. |
| 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. |
| 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 | The Planning Secretary’s Environmental Assessment Requirements were published for the project. |
Estimated Total Cost
(2023)
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Victoria |
Resources
Government resources
SEARsAEMO 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
2024/09/18 CEFC commitment
