Costs are projected to double to more than $7 billion for the contentious VNI West transmission line in Victoria, according to the Australian Energy Market Operator’s 2025 Electricity Network Options Report.
AEMO said in its report the project’s costs could continue to climb as high as $11.4 billion, driven by a combination of supply chain issues, project complexity, and community and landholder engagement.
Related article: Landholder negotiations delay VNI West by two years
Among the many vocal groups calling for the project to be scrapped is the Victorian Farmers Federation (VFF).
VFF President Brett Hosking said, “To date, the energy transition has been a failure and the Victorian Government is risking smooth and reliable energy transmission by continuing to force the VNI West project through.”
He said the Victorian Government’s handling of the energy transition had been incredibly clumsy, and an urgent rethink and change of approach was needed.
“Owning their mistakes and starting again with landholders and community as partners is the only way to deliver a smooth and timely transition,” Hosking said.
“Farmers know we need deep, economy wide cuts to emissions. We know the world is changing and we’re part of that change, but we won’t cop being steamrolled in the process.
“There’s huge opposition to this project throughout rural communities, and rightly so. This won’t change until the government and AEMO revisit their approach and treats farmers and our rural communities with the respect they deserve.”
Related article: Community consultation leads to route change for VNI West
The VNI West project will see a new transmission line built between Victoria and New South Wales by Transgrid and Transmission Company Victoria.
Harnessing clean electricity from Renewable Energy Zones (REZs) in both states, it is designed to maintain the reliability and security of electricity supply as ageing coal-fired power stations retire.
