The federal government is supporting critical energy infrastructure to ensure continued reliability of the national energy grid so Australian businesses, industry and households can continue to access low energy prices.
The government has reached an underwriting agreement with NSW provider, Transgrid, to deliver early works for the proposed Victoria to NSW Interconnector (VNI) West.
VNI West is expected to deliver up to 1,800MW of additional capacity between NSW and Victoria.
This will enable greater use of Snowy Hydro’s existing capacity and help unlock the benefits of Snowy 2.0’s on-demand, dispatchable generation to keep the lights on and prices low for consumers. It will also support the record levels of investment in renewables, including household solar.
Through $75.8 million in underwriting, the federal government will enable Transgrid to commence community and stakeholder engagement, project planning and technical design. This will ensure the VNI West interconnector remains on track and the delivery of Project Energy Connect (PEC), HumeLink and VNI West are well integrated.
Minister for Industry, Energy and Emissions Reduction, Angus Taylor, said targeted action to support VNI West, an “actionable” project in AEMO’s plan, continues the government’s record of delivering affordable, reliable power.
“We are investing in VNI West because it is expected to generate $1.9 billion in net market benefits and will be a key part of an efficient transmission backbone for the electricity market,” Taylor said.
“This builds on the Morrison government’s record of judicious investment of over $800 million in priority transmission projects recommended by AEMO’s Integrated System Plan – projects that stack up for consumers.”
The federal government will continue to work with industry, government and relevant stakeholders to deliver the most cost-effective energy outcomes in the interest of consumers.
The government’s balanced energy plan has seen power prices fall to their lowest level in eight years. Maintaining this balanced plan will deliver continued reliability and affordability for Australians while continuing to lower emissions.