Transgrid VNI West contingent project application stage 1 early works

Type

Contingent projects

Sector

Electricity

Segment

Transmission

Region

New South Wales

Entities

Transgrid - electricity transmission network

Status

Current

Commencement date

22 December 2023

Effective date

6 May 2024

Contacts

General enquiries - Contingent projects

On 22 December 2023, Transgrid submitted its stage 1 contingent project application to us seeking an increase to its revenue to fund the early works stage of the Victoria to NSW Interconnector West (VNI West) contingent project in accordance with clause 6A.8.2 of the NER. This VNI West contingent project application relates to the NSW portion that Transgrid is responsible for, which forms part of the overall construction of a new 500 kV transmission line between Victoria and NSW.

We invited stakeholders to make submissions on Transgrid's contingent project application. Submissions closed on 1 March 2024.

On 6 May 2024, we published our decision in relation to Transgrid's Victoria to NSW Interconnector West (VNI West) contingent project application.

Background

VNI West involves constructing a new 500 kV transmission line between Victoria and NSW, connecting the Western Renewables Link (at Bulgana, Victoria) with Project EnergyConnect (at Dinawan, NSW) via a new terminal station (near Kerang, Victoria). Transgrid’s VNI West contingent project application relates to the NSW component, while Transmission Company Victoria is responsible for the Victorian component.

VNI West is an actionable project as part of AEMO’s Integrated System Plan (ISP), which addresses an identified need in the 2024 draft ISP and received AEMO feedback loop confirmation on 21 December 2023. Under clause 5.16A.5 of the National Electricity Rules, criteria must be satisfied for the trigger event of actionable projects before the contingent project application can be submitted.

Following our decision on the stage 1 early works contingent project application, Transgrid will later submit a stage 2 contingent project application to us seeking to recover revenue for project implementation costs once the project has been committed to and a final cost estimate is available.

Our role is to review the prudency and efficiency of the proposed costs within the stage 1 application to ensure consumers pay no more than necessary. We have 40 business days from receiving the application or responses to information requests to make our decision. We expect to make a decision on the application in the coming months.