An electricity interconnector is a connection that allows power to flow in both directions between regions in the National Electricity Market, providing access to a larger number of electricity generators.

Victoria – New South Wales Interconnector (VNI) is enabling better power flows between the states, unlocking access to renewal energy generation. It is helping decrease the cost of wholesale electricity across the National Electricity Market and is putting downward pressure on customer bills.

What are the project benefits?

The upgrade will deliver net benefits of up to $268 million to electricity customers.

It will also:

  • support the development of renewable generation in new energy zones, which are expected to provide the bulk of energy in the future.
  • help to ensure more reliable supply of electricity to customers at all times, including during periods of peak demand.

The project was identified as a priority by both the Australian Energy Market Operator in the 2020 Integrated System Plan and by the State Government in the NSW Transmission Infrastructure Strategy.

What has been delivered?

We have installed Smart Valves power flow controller technology within Yass substation in NSW and our new Stockdill substation in the ACT.

Smart Valves 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. It will help unlock spare transmission capacity, allowing more energy to be transferred between Victoria and NSW.

AusNet Services will undertake complementary upgrades to the transmission network in Victoria.

Latest update

The $45 million upgrade of the Victoria-NSW Interconnector VNI was completed in November 2022 on budget.

The installation of SmartValve technology at Stockdill and Yass substations will unlock 170 megawatts of additional energy to the NSW grid, enough to power 30,000 homes.

The VNI upgrade will allow more renewable energy to flow between Victoria, NSW and the ACT and will also support the development of new renewable generation in NSW renewable energy zones.


Victoria NSW interconnector map


  • Preliminary investigation - Completed

    Late 2019

  • Detailed design - Completed

    Early 2020

  • Environmental assessment complete - Completed

    August 2020

  • Development approval from ACT Government - Completed

    October 2020

  • Construction commencement - Completed

    Early 2021

  • Project commissioning - Completed


Community and landowner engagement

During project planning and delivery Transgrid has worked with various stakeholders and the community to ensure they are appropriately consulted regarding project works. This process has been guided by alignment with regulatory requirements and industry standards.

Regulatory approval

Together with AEMO, Transgrid is undertaking a Regulatory Investment Test for Transmission (RIT-T). The RIT-T is a formal consultation process designed to:

  • Inform stakeholders of investment need and proposed options to address it
  • Test the market for alternative and more efficient solutions
  • Explain to stakeholders the basis on which the preferred option has been selected. 

Visit the resources section on this page to view the VNI RIT-T reports and related documents. 

Submissions and next steps 

Transgrid and AEMO received nine public submissions on the PSCR and six on the PADR. Submissions received (and approved for publication by proponents) can be viewed on the AEMO website.

Transgrid has submitted a Contingent Project Application to the Australian Energy Regulator seeking approval to vary Transgrid’s current 2018-23 Revenue Determination by an amount that reflects the prudent and efficient costs of the NSW component of the project.

Environmental approval

Following submission of a detailed Environmental Impact Assessment of proposed works, TransGrid obtained the approval for installation of SmartWires from Environment, Planning and Sustainable Development Directorate (EPSDD) – ACT on 14 October 2020.


Fact Sheets


PDF 8.51 MB


PDF 8.38 MB

RIT-T Project Specification Consultation Report (PSCR)


PDF 377.51 KB

RIT-T Project Assessment Draft Report (PADR)


XLSX 4.53 MB


XLSX 397.67 KB


XLSX 149.13 KB

RIT-T Project Assessment Conclusion Report (PACR)


PDF 1.44 MB


XLSX 320.22 KB

Contact us


02 November 2022

Transgrid delivers $45 million Victoria-NSW Interconnector upgrade, releasing flow of renewable energy between states

More renewable energy will now flow between Victoria, NSW and the ACT with the successful delivery of Transgrid’s upgrade of the Victoria-NSW Interconnector (VNI).


24 February 2022

Works start at Yass to deliver extra renewable energy into the NSW and ACT grid

Civil works have now begun at Transgrid’s Yass substation to enable the supply of additional power from renewable resources via the NSW and ACT grid.


22 December 2021

Victoria-NSW Interconnector technology will unlock additional energy for 30,000 homes

Transgrid crews have begun installation of innovative technology at the Stockdill substation which will enable extra energy to be supplied to 30,000 NSW and ACT homes when needed.