The Victorian section of the VNI West is a 240 kilometres, 500-kilovolt transmission line that connects the Western Renewables Link at Bulgana with the Kerang Power Station on the Victoria/NSW Border.
Key Dates
| Jul 2024 | ROIs Open |
| Aug 2024 | ROIs Close |
| Nov 2025 | Contract Award |
| 2027 | Expected Construction Commencement |
| 2030 | Expected Construction Completion |
Financing
| Debt Finance: | Clean Energy Finance Corporation (early works - Vic section) |
Procurement
| Procuring Agency: | VicGrid |
| Successful Tenderer: | Iberdrola Australia |
| Procurement note: | The project was intially procured by the Australian Energy Market Operator (AEMO) and Transmission Company Victoria (TCV). In November, responsibility for the project and TCV was transferred to VicGrid. Iberdrola Australia will assist VicGrid with the design, procurement, project management, and completion of an Environment Effects Statement (EES) during the project’s development phase. Contingent on meeting performance benchmarks, VicGrid may then appoint Iberdrola to build, own and operate the project. |
| Related contracts: |
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. |
| Jun 2025 | TCV announced that the expected construction commencement date for the project has been delayed from 2028 to 2030. The project has also seen its expected construction commencement date pushed back from 2026 to 2027. The updated timeline reflects revisions to TCV's assumptions for planning, design and construction. |
| Jul 2025 | TCV confirmed that the project's total cost has increased from $3.6 billion to $7.6 billion. TCV has not confirmed the updated cost for the Victorian section. The NSW section has been updated to $3.7 billion. |
| Nov 2025 | VicGrid was transferred accountability for the Transmission Company Victoria and the VNI West project. This transition was part of legislative reform which establishes VicGrid as a State Business Corporation responsibility for planning Victoria’s shared transmission network. |
| Nov 2025 | VicGrid has appointed Iberdrola as the Development Partner for the project, which includes 240 kilometres of 500 kilovolt (kV) double circuit transmission line between the Western Renewables Link in Bulgana and the NSW and Victoria Border. Iberdrola will assist VicGrid with the design, procurement, project management, and completion of an Environment Effects Statement (EES) during the project’s development phase. Contingent on meeting performance benchmarks, VicGrid may then appoint Iberdrola to build, own and operate the project. |
Sector
Energy
Procurement approach
Unconfirmed |
Location
Victoria |
Resources
Government resources
Preferred Easement ReportTCV VNI West Fact Sheet
Draft Corridor Report
National Renewable Energy Priority List
