The NSW section of the Victoria to New South Wales Interconnector West (VNI West) will now advance to its next stage with Transgrid securityholders committing almost $700 million to progress early works on the critical transmission project.
In recognition of the importance of the project to the National Electricity Market, the Clean Energy Finance Corporation (CEFC) has also provided $140 million in concessional financing support, under the Federal Government’s $20 billion Rewiring the Nation (RTN) program.
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Transgrid CEO Brett Redman said, “VNI West is essential to the delivery of Australia’s energy transition, meeting the Commonwealth and NSW Governments’ net zero targets and providing consumers with access to cheaper renewable energy.
“We are proud to be progressing the development of this major new 500kV infrastructure in NSW. The new transmission line will connect renewable energy zones in NSW and Victoria to the national electricity grid, delivering cleaner and cheaper electricity to families and businesses.
“The project is forecast to deliver around $1.4 billion in net market benefits. It will also make it easier to share electricity between NSW and Victoria, improving reliability and security of supply in both states.”
The Australian Energy Regulator approved the VNI West Contingent Project Application in May this year. It outlined the preliminary consumer savings and the estimated costs for early works and delivery of the critical transmission line.
Transgrid’s security holders continue to demonstrate strong support for the growth of the business, providing a significant additional equity commitment of almost $700 million to fund VNI West.
This finance now allows Transgrid to progress early works.
Redman said, “As we advance the project to the early works phase, our team will continue to engage with landowners and regional communities. They are vital to the success of the clean energy transition and their feedback on this project has informed planning for VNI West.
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“Transgrid has already achieved negotiated land access for 77% of the 235km route within NSW, to undertake environmental field studies and early site investigations.”
VNI West, together with major transmission projects HumeLink and EnergyConnect, will reshape the National Electricity Market and enable access to more affordable, reliable and sustainable electricity for millions of Australians.
