The VNI West project was assessed in its early stages via a Regulatory Investment Test for Transmission (RIT-T). The RIT-T is an economic cost-benefit test; it is like a business case conducted early on in a transmission project, to determine if it will deliver economic benefits. This regulatory process ensures energy users avoid paying more than necessary for electricity. Various options were analysed as part of this process, and the preferred Option 5A was identified and described in the PACR, the final RIT-T report published in May 2023. Option 5A maximises benefits for consumers while meeting the power system needs. It established the broad area of interest for the project, including locations for connecting the project into the existing network.

The need for VNI West was first identified in AEMO’s 2018 Integrated System Plan (ISP), which called for stronger grid connections between Victoria and New South Wales. The ISP was developed through extensive consultation with:

• Energy experts from academia, market bodies and industry

• The ISP Consumer Panel, comprising energy experts with industry knowledge

• Governments, market bodies, consumer advocates and technical experts

• Independent expert advice on inputs, assumptions and modelling

The project was then assessed through a Regulatory Investment Test for Transmission (RIT-T) — a formal cost-benefit analysis that included wide consultation with stakeholders. This involved:

• Public submissions and feedback (over 500 received)

• Roundtable workshops, webinars and information sessions

• Publication of the final RIT-T report (PACR) in May 2023

Since the RIT-T concluded, consultation has continued and expanded. Recent examples include:

• Weekly pop-up sessions in towns like Kerang, Charlton, Donald, Boort and Stawell, introduced in response to community requests for more accessible engagement

• Community sessions in August 2025 to support the Environment Effects Statement (EES), where locals shared insights on land use, ecology, heritage and social values

• Interactive map contributions, with over 2,300 comments helping refine the route and tower placements

• Landholder feedback on the Preferred Easement, resulting in over 250 tower locations being revised

• Ongoing engagement with Traditional Owner groups, local councils, and the Social Value Reference Group to ensure the project reflects community needs and values

Consultation remains a core part of project development. For current and upcoming engagement activities, visit the https://www.transmissionvictoria.com.au/community.

Independent input is considered at every stage of project development. AEMO’s Integrated System Plan is developed through a rigorous process reflecting expert advice on inputs, assumptions and scenarios from energy experts from academia, market bodies, industry and government, and from feedback on the draft plan.

The Regulatory Investment Test for Transmission (the business case for the project) was also extensively consulted on. Industry experts and interested parties provided feedback on the suite of credible options to be assessed, the assumptions and approach adopted for the assessment, and the proposed preferred solution. The Australian Energy Regulator also plays a role in ensuring compliance with the regulatory process.

The Development Facilitation Program (DFP) relates to speeding up planning decisions for certain projects. However, the Minister for Planning determined that VNI West is required to undertake an Environment Effects Statement (EES) process. VNI West is seeking the Minister’s support for a planning scheme amendment as part of the EES, whereby the Minister for Planning will become the decision-making authority, and therefore the DFP is not applicable.

The draft planning scheme amendment will be exhibited for public comment in parallel with the EES and would allow the use and development of the land for the project to be undertaken in accordance with specific conditions.

In addition, the Department of Transport and Planning is implementing initiatives from the Victorian Government's Economic Growth Statement (EGS) to streamline the remaining stages of the VNI West EES process. These include improving engagement with Technical Reference Group agencies and focusing on key environmental and planning issues at the public inquiry stage, with the aim of improving the overall timeframe of the EES process.

The project is being progressed under formal direction from the Victorian Government, following two Ministerial Orders under the National Electricity (Victoria) Act (NEVA):

• In February 2023, the Minister for Energy and Resources issued a NEVA Order to allow cultural, social and environmental factors to be considered in identifying alternate pathways for VNI West.

• In May 2023, a second NEVA Order identified Option 5A as the preferred route for the Victorian section of the project, along with changes to the Western Renewables Link.

These orders require the VNI West project team to progress planning and early works for VNI West. Whether the project proceeds to construction depends on formal planning and environmental approvals informed by:

• A comprehensive Environment Effects Statement (EES), which assesses potential impacts and determines whether they are acceptable

• A Commonwealth EPBC Act assessment, which evaluates national environmental significance

If these assessments find that the project’s impacts are too great — or cannot be adequately avoided, reduced or managed — the project may be modified or may not proceed.

The VNI West project team's role is to deliver the early development phase, including technical studies, community engagement, and preparation of the EES. The final decision on whether the project is approved lies with the Minister for Planning and other relevant authorities.

From 1 November 2025, VicGrid will take over responsibility for planning Victoria’s transmission infrastructure from AEMO Victorian Planning (AVP). This change is part of reforms under the Victorian Transmission Investment Framework (VTIF) to improve how transmission projects are planned and delivered.

VicGrid is a Victorian state-owned business corporation responsible for planning the state’s transmission network and renewable energy zones. It ensures projects are developed with strong community engagement, fairer benefit-sharing, and strategic oversight.

VicGrid will have accountability over VNI West from November 2025.

Given the establishment of VicGrid and the transfer of accountability for planning the Victorian transmission network to VicGrid, AEMO and AEMO Victorian Planning will not have an ongoing role in the development or delivery of VNI West. AEMO will continue to work closely with VicGrid to ensure a smooth transition and work with VicGrid in its role in the energy system as the market and system operator of the National Electricity Market and National Transmission Planner.

AEMO will continue its responsibilities to maintain a secure electricity and gas system, manage electricity and gas markets, and lead the design of Australia’s future energy system.

The Victorian Transmission Investment Framework is the strategic framework and policy direction for planning Victoria’s transmission network.

The VicGrid Stage 2 Reform Bill is the legislative mechanism that enacts the transfer of responsibilities for transmission planning in Victoria from AEMO Victorian Planning (AVP) to VicGrid and enables implementation of VTIF principles through VicGrid.

Essentially, the VicGrid Stage 2 Reform Bill makes the VTIF possible.