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About the project
The Victoria to New South Wales Interconnector West (VNI West) is a proposed new overhead transmission line that will support the development of new renewable energy generation and maintain energy reliability and security.
VNI West will enable the connection for new forms of electricity generation across Victoria's north-west.
It will also give Victoria access to generation and storage in New South Wales. This will support our transition to renewables and ensure reliable electricity supply when demand is high, like on very hot days.
It will also allow Victorian renewable generators to sell more of their power to consumers in New South Wales when it is not needed in Victoria.
The Victorian section of the project is approximately 240 km long and runs from Bulgana in Victoria's west to a proposed new terminal station site at Tragowel in the north, before connecting with the NSW section at the Murray River north of Kerang.
Project status
The need for VNI West was identified by the Australian Energy Market Operator (AEMO). They carried out a Regulatory Investment Test for Transmission (RIT-T) to assess the technical and economic viability of the project, which was completed in 2023.
AEMO then undertook an analysis of social, environmental, cultural, technical and economic factors to identify an area of interest for the project.
The initial Area of Interest was refined to a draft corridor and now project easement, following feedback from landholders, community members, Traditional Owners, government agencies and stakeholders.
An Environment Effects Statement (EES) is now being prepared for the project. An EES is Victoria’s most rigorous assessment of the environmental impacts of a project. It considers physical, biological, heritage, cultural, social, health, safety and economic issues.
Once the EES is completed it will be exhibited and open for public submissions. Find out more about the EES process and how to get involved on the VNI West project website.
Who is delivering VNI West?
From 1 November 2025, VicGrid assumed responsibility for transmission network planning in Victoria, including accountability for VNI West from the Australian Energy Market Operator's Victorian Planning (AVP) function.
Iberdrola Australia has been selected as the development partner for the Victorian section of the VNI West project. Iberdrola will assist with the completion of early works, and if Iberdrola meet VicGrid’s expectations through the development phase, they will then be appointed to build, own and operate the project with strict oversight from VicGrid. Their locally based team, backed by Iberdrola Group, brings extensive experience delivering and managing complex energy infrastructure projects, including community collaboration, across Australia and globally.
The New South Wales section of VNI West is being delivered by Transgrid, the operator of the transmission networks in New South Wales and the Australian Capital Territory.
NEVA orders
The Victorian Government has issued National Electricity (Victoria) Act 2005 (NEVA) orders to allow AEMO to progress key transmission projects, and for VicGrid to assist in their delivery.
A NEVA order provides the Victorian Minister powers in relation to electricity transmission and grid planning in Victoria, directing or enabling actions to expedite projects within Victoria's transmission network.
These orders have enabled AEMO to carry out more community engagement on VNI West and to consider social, environmental and land use factors, as it has worked to identify a preferred easement.
More information
Victoria Energy Policy Centre's Plan B 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 made incorrect assumptions regarding Victoria’s needs for significant battery and other storage investments and risks with construction and operation.
If you would like more information on the findings from the independent assessment, email your request to enquiries@vicgrid.com.au
Page last updated: 24/04/26
