VNI West to provide essential infrastructure for net zero transition
Transmission line between NSW and Victoria to increase security and reliability of the electricity network.
The CEFC Rewiring the Nation Fund finance backs the development of the NSW section of VNI West which will play a critical role in Australia’s net zero transition.
$140 million
CEFC commitment
4 GW
renewable energy
500 kV
infrastructure
While the scale of the investment task is considerable, we are also capturing large-scale economic, energy and emissions benefits. We are pleased to invest CEFC capital through the RTN Fund to enable Transgrid to complete early works that will help progress VNI West in New South Wales, an important project in Australia’s clean energy transition.Paul McCartneyChief Investment Officer - Rewiring the Nation, CEFC
Our investment
The Victoria to NSW Interconnector West – known as VNI West – is a 500 kV double circuit transmission line that will connect the high voltage electricity grids in New South Wales and Victoria.
The transmission infrastructure will increase transfer capacity between the two states and improve electricity network reliability and security as coal fired-power stations retire and more renewable energy generation is integrated.
The CEFC has committed $140 million in finance which, alongside a $700 million equity commitment from Transgrid security holders, will be used to progress early works on the NSW section of the nation critical project.
Those early works include:
- Securing Long Lead Equipment such as transformers, reactors, conductors and steel
- Detailed design of substations and transmission lines, and market engagement to identify preferred construction contractors, environmental impact assessments and submissions
- Community and stakeholder engagement, including work to assess and progress negotiations to acquire substation and transmission line easements.
When operational, the interconnector is expected to harness an additional 4,140 MW of renewable energy generation.
The Victorian section of the project is being developed by Transmission Company Victoria, a wholly-owned subsidiary of the Australian Energy Market Operator (AEMO).
About the CEFC RTN Fund
Through the $19.5 billion Rewiring the Nation Fund, the CEFC is addressing the financing barriers to building the required grid electricity infrastructure needed to achieve Australia’s energy transition.
Other commitments include:
- $120 million to AEMO VNI West Victoria early works
- $490 million to the Central-West Orana Renewable Energy Zone
- $100 million to delivering clean energy projects via the NSW Electricity Infrastructure Roadmap
OUR IMPACT
Australia’s energy system is undergoing rapid change, with additional generation, storage and transmission needed to achieve the nation’s ambitions of net zero emissions by 2050.
AEMO identified VNI West as an actionable project in its 2024 Integrated System Plan and the NSW Government has recognised VNI West as Critical State Significant Infrastructure, deemed essential to the state for economic, social or environmental reasons.
The VNI West 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. Importantly for regional Australia, this project will generate more than 1000 jobs and provide millions of dollars worth of community investment and benefits.Brett RedmanCEO, Transgrid
