Arguments over the large VNI West project lay bare the fundamental divisions over the need for major new transmission lines to support the energy transition.
A flagship $3.3 billion transmission project favoured by the Victorian government and the Australian Energy Market Operator has been branded “a monumental mistake” that would double or triple transmission charges for consumers.
It sensationally accuses the AEMO, which is the planning body for transmission in Victoria, of “biased, flawed and in parts dishonest analysis” of the project, including its assumptions on the location of new renewable generation, and says it has overlooked the capacity of existing transmission from the Latrobe Valley to support growth in wind and solar power.
“Extensive modelling shows that VNI West delivers benefits to consumers in meeting energy reliability and security as ageing coal-fired power stations close.” However, the project has stoked opposition among communities in north-west Victoria worried about the impact on agricultural land, and the sight of huge transmission towers.
In February, Victoria’s Minister for Energy and Resources, Lily D’Ambrosio, committed to accelerating VNI West, abbreviating its planning timetable to make this consultation process the last opportunity for external input before the options were finalised.Transgrid, which would build and own VNI West, will provide a vital new transmission line supporting Australia’s “once-in-a-generation change” towards a net zero emissions future.
AEMO’s preferred option is to combine the VNI West project with the Western Renewables Link, a new transmission line proposed between Bulgana in western Victoria and Sydenham in Melbourne’s north-west that is due to start up in 2026-27.
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