Transgrid, the power transmission system operator (TSO) in New South Wales and the Australian Capital Territory (Australia) has announced a financial boost to start early works on the New South Wales section of the 500kV Victoria to New South Wales Interconnector West (VNI West) in Australia. The AUD840m (US$570m) funds come from Transgrid’s equity commitment and of concessional financing support from the Clean Energy Finance Corporation (CEFC). The financing will allow, to secure Long Lead Equipment (transformers, reactors, conductors, steel), detailed design of substations and transmission lines, among other things.
The VNI West consists of a 500 kV double circuit line, which will connect Ballarat in Victoria to Dinawan in NSW, unlocking between 1.9 and 5 GW of new renewable projects in Victorian Renewable Energy Zones (REZs). Transgrid has negotiated land access for 77% of the 235 km route within NSW, to undertake environmental field studies and early site investigations, while the Victorian section of the project is currently being developed by the TSO Victoria, a wholly-owned subsidiary of the Australian Energy Market Operator (AEMO).
The VNI West Project, which is expected to cost around AUD3.3bn (US$2.3bn), is part of Victoria State’s target to reach 65% of renewables in power generation by 2030 and 95% by 2035.