Transgrid will first construct a critical 500 kV link to support new wind and solar generators in the NSW government’s South West Renewable Energy Zone, delivering more affordable power for customers while planning for the interconnector into Victoria continues.
An updated cost estimate of $3.7 billion for VNI West (NSW) follows significant planning and assessment work over the last two years, including working closely with landowners and communities to redefine the powerline’s route for the NSW portion of the interconnector between Australia’s two most populous states.
VNI West (NSW) Project Director Colin Mayer said: “We are committed to delivering the NSW section of VNI West, which is essential to providing millions of consumers across the two states with access to more reliable, sustainable and affordable energy.”
“Transgrid would like to thank NSW communities and landowners whose local knowledge and valuable insights have been instrumental in shaping the project, including redefining the powerline’s route to reduce impacts and progressing negotiations for the transmission line easement.”
“We are now planning delivery of VNI West (NSW) in a staged approach, starting with the extension of our 500 kV network through to Dinawan substation, near Coleambally, and the South West Renewable Energy Zone, with completion scheduled for early 2029.”
“The first stage alone will unlock a total additional 2,500 MW of electricity for the grid, which is enough to power 800,000 households.”
“The second stage, comprising the transmission line from Dinawan substation to the Victorian border, will be delivered in line with Victoria’s revised schedule of November 2030.”
“This will ensure that NSW and ACT consumers do not incur the full costs of the project until they can benefit from the access to more affordable renewable energy that interstate energy transfer will unlock.”
Transgrid’s updated cost estimate for the NSW section of VNI West follows detailed assessment of connections with other parts of the backbone transmission network, and reflects industry-wide cost increases to deliver major infrastructure in Australia, due to a range of global factors.
“Transgrid is committed to transparently delivering its nation-critical projects, including providing updates regarding project cost and delivery timeframes,” Mayer said.
“As a regulated business, we must satisfy the independent Australian Energy Regulator that these investments are both prudent and efficient in terms of the cost to deliver and ensuring net benefits to consumers.”
“Consumers can be assured that we are doing everything we can to keep costs as low as possible and deliver tangible benefits as soon as possible.”
VNI West is a proposed new 500 kV double-circuit transmission line connecting the high-voltage electricity grids in NSW and Victoria, and is being jointly developed by Transgrid and Transmission Company Victoria.
The Environmental Impact Statement for VNI West (NSW) is on track for public exhibition in August 2025.
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