VNI West (NSW) to provide essential infrastructure for net zero transition
Transmission line between NSW and Victoria to increase security and reliability of the electricity network.
CEFC finance, through the Rewiring the Nation Fund, backs the development of the NSW section of the VNI West Interconnector, 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 an 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).
OUR IMPACT
Through the specialist $19.5 billion Rewiring the Nation Fund, the CEFC is spearheading investment in transmission infrastructure, long-duration storage, electricity distribution network infrastructure and distributed energy resources – projects which will help Australia achieve net zero emissions by 2050.
The CEFC finance for VNI West (NSW) is part of our larger $1.92 billion commitment to enable the construction of a clean energy “superhighway” connecting millions of consumers to low emissions, low-cost renewable energy as Australia pushes toward net zero emissions by 2050.
HumeLink will link the Greater Sydney electricity load centre with the Snowy Mountains Hydroelectric Scheme (Snowy 2.0), Energy Connect in south-west NSW and the NSW element of VNI West (NSW).
The infrastructure will deliver up to 2,000 MW of pumped storage to major population centres, with Transgrid modelling estimating this vast firming capacity will also enable the grid transmission of an additional 2,570 MW of renewable energy.
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
