The Victorian Government is stepping up its efforts to drive the state's clean energy revolution by accelerating a major new link between the Victorian and New South Wales electricity grids. This will help ensure a reliable energy supply and reduce energy costs.
The Government has given the Australian Energy Market Operator (AEMO) the go-ahead to begin preliminary work on the Victoria-New South Wales Interconnector (VNI) West project. This project could potentially increase Victoria's import and export capacity with NSW by more than 1,800 megawatts (MW).
Transmission projects such as VNI West are essential to deliver affordable and reliable renewable energy and storage capacity as Victoria moves away from ageing and increasingly unreliable coal-fired generation. They will also ensure the reliability of energy supply during periods of peak demand, such as extremely hot days.
VNI West has the potential to unlock between 1,900 and 5,000 MW of new renewable energy projects in Victorian Renewable Energy Zones (REZs), create an additional market for Victorian offshore wind and provide access to NSW projects such as Snowy 2.0.
An order has been made under the National Electricity (Victoria) Act 2005 (NEVA) to allow AEMO to commence preparatory and planning work immediately. This will accelerate key development activities such as stakeholder and community engagement, land use planning, detailed engineering design and cost estimation. Processes such as the Environmental Impact Statement (EIS) can begin later in 2023, a year ahead of schedule.
AEMO will also explore alternative options for VNI West, including the WRL interconnector, based on valuable feedback from local communities, Traditional Owners and regional stakeholders. This additional analysis and consultation will enable AEMO to select a project option that best meets the needs of the community.
The VNI West project is part of the Government's leading efforts to reduce emissions with renewable energy targets of 65 per cent by 2030 and 95 per cent by 2035. These targets will help reduce electricity prices and create 59,000 jobs.