CEFC Backs VNI West with an Additional $120M for Energy Security

The Australian Energy Market Operator (AEMO) has secured an additional $120 million in funding for the Victorian component of the VNI West transmission project. This new investment comes from the Clean Energy Finance Corporation (CEFC) via the Rewiring the Nation (RTN) program, further advancing Australia’s clean energy transition.

The VNI West project is a critical initiative to connect the Victorian and New South Wales energy grids. This transmission link will facilitate the transfer of renewable energy between the two states, helping to stabilize the energy supply as coal-fired power plants retire. The project is a key element in the Integrated Systems Plan (ISP) for achieving Australia’s net-zero targets.

With a total investment of $3.6 billion, the VNI West project is expected to unlock 3.4GW of new renewable energy generation in Victoria and increase the energy transfer capacity between Victoria and New South Wales by 1.9GW. Additionally, this transmission link will enhance energy reliability by enabling access to Snowy 2.0, a key hydro project.

CEFC CEO Ian Learmonth highlighted the importance of secure, renewable energy for Australia's future low-emission economy. He stressed that the CEFC’s investment is crucial for delivering large-scale ISP projects, like VNI West, which will transform the national grid and support the clean energy transition.

Australia’s National Electricity Market (NEM) faces significant changes as 90 percent of its coal fleet is expected to retire by 2035. To maintain secure and reliable energy, Australia must increase grid-scale renewable generation six-fold and expand its transmission network by 10,000km by 2050, according to AEMO’s 2024 ISP blueprint.

The Federal Government’s Rewiring the Nation Fund, managed by the CEFC, is playing a pivotal role in this transition. With an allocated $19 billion to finance critical RTN-related projects, the fund aims to help Australia achieve 82 percent renewable energy by 2030. CEFC’s investments focus on transmission infrastructure, distributed energy resources, and long-duration energy storage solutions.

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