Regulator approval clears the path for VNI

15 April 2021

The Victoria-NSW Interconnector (VNI) Minor project has now passed all regulatory steps with the decision by the Australian Energy Regulator (AER) to approve funding.

“The VNI Minor project will allow more energy to flow between the two states and help lower the cost of wholesale electricity across the National Electricity Market,” Transgrid Project Director Dany Gittani said.

The VNI Minor project is an actionable project in the Australian Energy Market Operator’s Integrated System Plan.

The project will allow for an additional 170 megawatts to flow from Victoria to NSW, providing a critical contingency arrangement during periods of peak demand through the use of innovate non-network technology.

“The VNI Minor project involves Transgrid installing ‘smart wires’ power flow controller technology within our Stockdill substation in the ACT,” Mr Gittani said.

‘Smart wires’ technology enables the real-time control of electricity flows along power lines. The system detects areas of congestion in the network and automatically redirects flows to less congested lines, under certain network scenarios. It will allow more energy to be transferred between Victoria and NSW.”

The AER assessed Transgrid’s proposed costs for VNI and found they were reasonable and are what is needed to deliver the project.

“The AER decision enables us to deliver the project to fruition this year,” Mr Gittani said.

For further information, visit the AER announcement.

Transgrid media enquiries:
Wendy Searle 0400 924 974