CEFC Backs VNI West with $120M Investment Boost

The Clean Energy Finance Corporation (CEFC) has committed an additional $120 million to the Victorian segment of the VNI West transmission project, aimed at strengthening the electricity supply between Victoria and New South Wales. This funding is part of the Rewiring the Nation (RTN) program, as Australia gears up for a clean energy transformation.

VNI West is a critical transmission link that will connect the energy grids of Victoria and New South Wales, allowing the transfer of renewable energy generated in key zones. The project supports the retirement of coal-fired power stations and promotes the use of more affordable renewable energy sources, reinforcing the national power grid.

With a projected investment of $3.6 billion, VNI West is set to unlock 3.4GW of additional renewable energy in Victoria and increase transfer capacity by 1.9GW between the two states. This will not only improve energy reliability but also enhance access to Snowy 2.0, a major renewable energy project in the region.

CEFC CEO Ian Learmonth emphasized the importance of renewable energy for Australia’s low-emission future, stating that projects like VNI West are essential to achieving net-zero emissions by 2050. The investment also ensures that Australia's energy grid can handle the growing demand for renewable power as coal plants retire.

AEMO's 2024 Integrated Systems Plan (ISP) highlights that 90% of Australia’s coal fleet is expected to retire by 2035. To maintain energy security, Australia must increase grid-scale renewable generation by six times (127GW) and add four times the storage capacity by 2050. The VNI West project plays a key role in this roadmap.

The CEFC's involvement in the RTN Fund has led to significant investments, including $850 million across four major projects since July 2023. These include the Central West Orana REZ and critical NSW infrastructure, supporting Australia’s goal of reaching 82% renewable energy by 2030.

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