AEMO Victorian Planning (AVP) and Transgrid have released the final report in the regulatory investment test for the Victoria-New South Wales Interconnector West (VNI West), marking the end of a regulatory process that began in 2019, involving hundreds of stakeholders and more than 600 written submissions.
The Project Assessment Conclusions Report (PACR) outlines the preferred option and a geographic area of interest for the project. The option is forecast to deliver approximately $1.4 billion in net market benefits, generating significant savings for consumers through avoided generation, storage and fuel costs, and transmission expansion cost savings for renewable energy zones (REZs).
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Harnessing more renewable generation than the previously proposed option, the preferred option will run between 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, where it will connect to the Western Renewables Link.
“AVP and Transgrid recently completed six weeks of community consultation in relation to alternate options for VNI West and received feedback and submissions from local communities and stakeholders,” an official statement said.
“This valuable feedback has reshaped where VNI West crosses the Murray River, with the final option adjusted to reflect stakeholder feedback identifying constraints around culturally and environmentally significant areas as well as zones of irrigated agriculture.”
AVP group manager Nicola Falcon said that significant consultation and stakeholder feedback had contributed to the proposed option that maximises benefits to electricity consumers and unlocks 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,” she said.
“The feedback received has helped us identify a preferred option for the critical transmission line—a variant of the previously proposed option—that delivers the most benefits for consumers and more electricity generation from three REZs in Victoria and NSW.
“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 said.
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Transgrid executive general manager of major projects Gordon Taylor said, “Transgrid will now work with communities, Traditional Owners and stakeholders to refine the NSW section of the project. This critical transmission infrastructure will reshape the National Electricity Market and enable significant sharing of energy 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.”
