Transmission projects in Victoria

VicGrid is coordinating the development of transmission infrastructure to support offshore wind.

Status

In March 2024, we released a study area and preferred transmission technology for connecting offshore wind energy generated off the coast of Gippsland to the grid. We are now working with landholders and communities in the Gippsland study area to progressively narrow the area to a preferred corridor and then a route. For more information, visit Gippsland offshore wind transmission.

The Australian Government has declared a second offshore wind area off the Victorian coast in the Southern Ocean region. VicGrid will now take time to assess the implications of this announcement and the area that has been identified.

Benefit

Connecting at least 2 gigawatts (GW) of new offshore wind power by 2032, 4 GW by 2035 and 9 GW by 2040.

Providing a major new energy source that helps secure Victoria’s energy future.

A coordinated approach will reduce impacts on landscapes and local communities, encourage renewable energy generation investment and keep energy costs down for Victorians.

Consultation

Early engagement with communities and landholders is our priority. We are giving locals a real voice in the planning process and providing them with information and support throughout the process. To learn more, visit how we are making decisions.

VicGrid is committed to partnering with First Peoples.

For opportunities to get involved, visit Engage Victoria.

Western Renewables Link is a 190 km high voltage overhead transmission line from Sydenham to Bulgana in Victoria’s west.
Status

RIT-T completed by AEMO.

In the planning and approvals stage led by AusNet. This stage is due to be completed in early 2025.

Visit AusNet’s Western Renewables Link project website to learn more and read the status of the project and ongoing opportunities for community input.

Visit the AEMO website to learn more about the RIT-T for WRL.

Benefit

The project is critical infrastructure required to unlock the renewable energy potential of western Victoria as a key Renewable Energy Zone and will help to deliver clean and affordable energy to Victorians.

WRL connects VNI West to the Victorian electricity grid, including major load centres and increases hosting capacity.

Marinus Link is a proposed undersea and underground electricity connection to further link Tasmania and Victoria.

Status

The Victorian Government has signed a historic agreement with the Commonwealth and Tasmanian governments to purchase a one-third share in Marinus Link.

Under the new agreement the Victorian Government will own 33.3 per cent of Marinus Link while the Commonwealth Government and Tasmanian Government will own 49 and 17.7 per cent, respectively.

Stage one of Marinus Link is expected to cost between $3-3.3 billion and be operational by as early as 2030.

Benefit

Marinus Link will help to secure Victoria’s energy reliability and give Victoria access to Tasmanian hydropower.

It will enable the flow of electricity in both directions between Victoria and Tasmania, delivering low-cost, reliable, renewable energy for Victorians and the broader National Electricity Market. It will enable excess energy to be stored in Tasmania’s hydro storage and used when grid demand surpasses supply.

As well as putting downward pressure on electricity prices across the National Electricity Market, economic modelling by EY shows that Marinus Link Stage 1 is expected to support around 900 Victorian jobs per year and contribute about $856 million to Victoria’s economy.

A 250 megavolt amperes synchronous condenser next to the Ararat Terminal Station to provide system strength services.

Status

Works commenced by Australian Energy Operations. Fourth REZ Stage 1 Projects Ministerial Order.

Benefit

Will unlock up to 600 MW of new renewable energy in the Western Victoria REZ.

Nine minor network augmentations to

• manage thermal loading
• increase thermal capacity
• establish dynamic line ratings
• or control schemes across multiple REZs.

Status

Works commenced by AusNet. Third REZ Stage 1 Projects Ministerial Order.

VNI West is a proposed new high-capacity 500 kV double-circuit overhead transmission line between Victoria and New South Wales, running from Dinawan NSW via a new substation near Kerang to a terminal station connecting into the Western Renewables Link at Bulgana.

Status

RIT-T was completed by AEMO-Victoria Planning (AVP) (Victorian side) and Transgrid (NSW side) in May 2023.

In the early works stage (Route Refinement and Planning) by Transmission Company Victoria (TCV) (Victorian side) and Transgrid (NSW side). This stage is due to be completed in early 2026.

Visit TCV’s website to learn more and read the status of the project and ongoing opportunities for community input.

Visit the AEMO website to learn more about the RIT-T for VNI-West.

Benefit

Allows for approximately 3.4 GW of additional renewable generation to be built across the solar-rich Murray River Renewable Energy Zone (REZ) and wind-rich Western Victoria REZ.

Connects Victoria to electricity supply and storage in NSW, ensuring reliable electricity access during high demand periods.

Enables export capacity to other states, particularly for offshore wind.

Plan B

Victoria Energy Policy Centre's Plan B report set out an alternative proposal to the design of the Victorian Transmission Network. It suggested alternative options to the delivery of the VNI-West project in order to meet Victoria's energy security and supply needs.

After careful and serious consideration, a review of Plan B found that it is not the right solution for Victoria. The review's findings included that Plan B would not deliver reliable renewable energy to Victoria without significant uncosted additional investments and doesn’t fully outline risks with construction and operation. Furthermore, the review found that the Plan B report underestimates the benefits of the VNI-West project, while the review doesn’t support the Plan B report assessment of security risks of VNI-West.

For more information read the Plan B review, which is available below.