- Transgrid secures $700M from security holders for VNI West's early works.
- CEFC invests $140M under the Federal Rewiring the Nation program.
- VNI West will link renewable energy zones in NSW and Victoria to the grid.
- The project will create over 1,000 regional jobs and deliver $1.4B in benefits.
- VNI West is key to Australia’s clean energy transition and net zero goals.
Transgrid has received a significant financial boost, securing almost $700 million from its security holders to advance early works on the New South Wales section of the VNI West transmission line, a key component of Australia’s push towards a clean energy future. The Clean Energy Finance Corporation (CEFC) has also committed $140 million in concessional financing under the Federal Government’s $20 billion Rewiring the Nation (RTN) program, highlighting the critical role this project will play in the National Electricity Market (NEM).
The VNI West project, which aims to connect renewable energy zones in New South Wales and Victoria to the national grid, is expected to deliver significant economic and environmental benefits. According to Transgrid CEO Brett Redman, the project is a cornerstone of Australia’s energy transition and will play a crucial role in achieving the net zero targets set by both the Commonwealth and New South Wales governments.
"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," said Mr. Redman. He added that the project would "improve reliability and security of supply" in both states and is expected to generate over $1.4 billion in net market benefits.
In addition to enhancing the national grid, the VNI West project will generate over 1,000 jobs in regional New South Wales, delivering significant benefits to local communities. "Importantly for regional Australia, this project will generate more than 1,000 jobs and provide millions of dollars worth of community investment," Mr. Redman said.
The Australian Energy Regulator gave the green light to the project in May 2024, approving the Contingent Project Application (CPA Stage 1) for early works. These early works, funded by the newly secured investments, will include securing critical equipment, finalising detailed designs for substations and transmission lines, and engaging with local contractors for construction. Environmental impact assessments and community consultations will also be a priority, with Transgrid already securing land access for 77% of the proposed 235 km route in New South Wales.
As part of this phase, Transgrid will continue its dialogue with local landowners and communities, which has been integral to the project's planning and progress. "Our team will continue to engage with landowners and regional communities. Their feedback on this project has informed planning for VNI West," said Mr. Redman, acknowledging the role of local stakeholders in facilitating the clean energy transition.
Paul McCartney, CEFC Chief Investment Officer for the Rewiring the Nation program, also underscored the importance of the project. “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," he said. The CEFC’s $140 million investment is part of the broader strategy to ensure large-scale energy and emissions benefits for the nation.
VNI West, along with other major transmission projects like HumeLink and EnergyConnect, is expected to reshape the NEM, providing Australians with access to more affordable, reliable, and sustainable electricity. The project has also been recognised as Critical State Significant Infrastructure by the New South Wales Government, further cementing its importance to the state’s economic, social, and environmental goals.
The Victorian section of VNI West is being developed by Transmission Company Victoria, a subsidiary of the Australian Energy Market Operator (AEMO), and will complement New South Wales' efforts to strengthen the nation’s renewable energy infrastructure.
This investment in early works signals a major step forward for VNI West, bringing Australia closer to its clean energy transition while generating significant benefits for regional communities and the national economy.