Victoria to NSW Interconnector West



The Australian Energy Market Operator (AEMO) has published a project proposal consultation report as part of a joint Regulatory Investment Test for Transmission (RIT-T) with TransGrid, to assess the technical and economic viability of expanding transmission interconnector capacity between New South Wales (NSW) and Victoria. The proposed expansion seeks to address identified transmission network limitations and manage future energy supply reliability, ensuring the power system continues to deliver least-cost, secure and reliable energy to consumers now, and into the future.

 As the responsible transmission network planners for their respective regions (AEMO in Victoria and TransGrid in NSW), under the National Electricity Rules (NER) AEMO and TransGrid are required to complete a RIT-T for significant transmission investment proposed for the National Electricity Market (NEM). The RIT-T is a regulated economic cost-benefit test designed to identify the option that will deliver the highest net economic benefits to all those who produce, consume and transport electricity in the market. This approach is ultimately intended to protect consumers from paying more than necessary for their electricity in the long term.

The consultation process

In order to assess all network and non-network options from a technical and economic perspective, we are using the Australian Energy Regulator’s Regulatory Investment Test for Transmission (RIT-T). The RIT-T is a formal consultation process designed to:
  • Inform stakeholders of the 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. 
The RIT-T consultation process has three stages:


Submissions and next steps 

Submissions on the Project Specification Consultation Report closed on 13 March 2020. To view submissions, visit stakeholder consultation on AEMO's project page.  

For information and updates on the VNI West RIT-T, please visit AEMO's VNI West RIT-T project page or contact the team on 1800 845 044 or VNIWestRITT@aemo.com.au