Debate Over Victoria’s Ambitious & Longest Power Line
Announced against increasing concerns about energy security, grid stability, and the transition to renewable energy sources, the VNI West project is a joint venture between the Victorian and New South Wales governments. The project is designed to span approximately 900 kilometres, linking the renewable energy-rich regions of Victoria to New South Wales. The proposed high-capacity transmission line is poised to impact the energy sector substantially, offering improved grid reliability, enhanced interconnection and facilitating efficient renewable energy transportation across state borders.
A new report and plan by the Victoria Energy Policy Centre (VEPC) has warned that Victorians face a more than doubling of transmission charges on their electricity bills if the state government proceeds with plans for the proposed VNI West transmission line. The VEPC is a non-profit think tank that provides independent analysis and advice on energy policy.
The VNI West line is a 500 kilovolt (kV) line linking Melbourne’s outskirts with Wagga Wagga in New South Wales. It is the longest single power line in Australia’s history and is estimated to cost $11 billion.
The VEPC report argues that the VNI West line is far costlier than alternatives and faces extensive landholder opposition. It also says the line will not solve grid bottlenecks holding back the state’s new solar and wind farms.
The report estimates that the Victorian portion of the line alone will cost $4.9 billion in current dollars. Add in a further $3 billion needed for upgrades to the existing 220kV networks to integrate VNI West, and the full cost could swell to $11 billion and lift Victorians’ transmission charges by at least 124%.
The VEPC report has been welcomed by critics of the VNI West line, who argue that it is a waste of money and will not deliver the benefits that the government claims.
The VEPC has defended its plan, saying it is more cost-effective and less disruptive than the VNI West project. The VEPC has also said that its plan would still allow for significant renewable energy generation in Victoria.
