VNI West gets greenlight for early works with $700m equity commitment, securing 1000 jobs in regional NSW
The CEFC has invested $140 million through the RTN Fund to help finance early works to develop the VNI West project.
CEFC Chief Investment Officer (Rewiring The Nation) Paul McCartney said: “This is the critical decade for Australia to act if we are to achieve our renewable energy and emissions reduction targets and build a clean energy network for our net zero future.
“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.”
Transgrid media release:
VNI West gets greenlight for early works with $700m equity commitment, securing 1000 jobs in regional NSW
28 August 2024
The NSW section of the New South Wales Interconnector (VNI West) will now advance to its next stage with Transgrid securityholders committing almost $700 million to progress early works on the nation- critical project.
In recognition of the importance of the project to the National Electricity Market, the Clean Energy Finance Corporation (CEFC) has also provided $140 million in concessional financing support, under the Federal Government’s $20 billion Rewiring the Nation (RTN) program.
Transgrid CEO Brett Redman said: “VNI West is essential to the delivery of Australia’s energy transition, meeting the Commonwealth and NSW Governments’ net zero targets and providing consumers with access to cheaper renewable energy.
“We are proud to be progressing the development of this major new 500kV infrastructure in NSW. The new 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.”
The Australian Energy Regulator approved the VNI West Contingent Project Application (CPA Stage 1) in May this year. It outlined the preliminary consumer savings and the estimated costs for early works and delivery of the critical transmission line.
Transgrid’s security holders continue to demonstrate strong support for the growth of the business, providing a significant additional equity commitment of almost $700 million to fund VNI West.
This finance now allows Transgrid to progress early works including:
- 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.
Mr Redman said, “As we advance the project to the early works phase, our team will continue to engage with landowners and regional communities. They are vital to the success of the clean energy transition and their feedback on this project has informed planning for VNI West. Transgrid has already achieved negotiated land access for 77% of the 235km route within NSW, to undertake environmental field studies and early site investigations.
“We look forward to ongoing dialogue with local landowners and communities and to investing in the regional communities that are at the centre of the energy transition. Construction of the project will also generate much-needed jobs, training and supply opportunities in local communities along the project corridor.”
CEFC Chief Investment Officer (Rewiring The Nation) Paul McCartney said: “This is the critical decade for Australia to act if we are to achieve our renewable energy and emissions reduction targets and build a clean energy network for our net zero future.
“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.”
VNI West, together with major transmission projects HumeLink and EnergyConnect, will reshape the National Electricity Market and enable access to more affordable, reliable and sustainable electricity for millions of Australians.
The NSW Government recently recognised VNI West as Critical State Significant Infrastructure, deemed essential to the state for economic, social or environmental reasons. The Australian Energy Market Operator identifies VNI West as an actionable project in the recently released 2024 Integrated System Plan.
The Victorian section of the project is currently being developed by Transmission Company Victoria, a wholly-owned subsidiary of the Australian Energy Market Operator (AEMO).
VNI WEST FAST FACTS
- 1000 jobs
- More than $1.4 billion net market benefits to consumers
- Local workforce and industry participation focus
- Indigenous procurement and participation target of 2.5-5%*
- VNI West would harness an additional 4140MW of renewable energy generation, which could supply approximately 2.7 million homes.
*proportion of contract value
