Nexa Advisory welcomes the opportunity to contribute to the Draft 2025 Victorian Transmission Plan (VTP) developed by VicGrid, building on the state’s broader Victorian Transmission Investment Framework (VTIF).
The factors contributing to the slow transition are many and complex, but a key issue is the ongoing delays to delivering new transmission projects, particularly interconnectors. This is evident in Victoria, where critical transmission projects such as Victoria to New South Wales Interconnector West (VNI West) and Western Renewables Link (WRL) have not been delivered as originally scheduled, resulting in significant cost escalations.
The failure to deliver these transmission projects on time has created an energy crisis in the state, posing a significant risk to power system reliability and security after the closure of Yallourn in 2028, as well as increasing costs for consumers both large and small.
We consider:
- VicGrid must adopt a collaborative approach to transmission planning
- The Draft VTP must better address known transmission challenges to unlock near-term generation and storage projects
- The Draft VTP does not provide investment confidence in onshore renewable development
- Developing offshore wind should not come at the expense of near-term development
- Delaying near-term development will result in greater reliance on gas, threatening affordability and reliability
We urge VicGrid and the Victorian Government to:
- Better identify what is required to ensure orderly closure of Yallourn and Loy Yang
- Lean into new, onshore capacity build
- Facilitate market-led intra-regional transmission and virtual transmission solutions
- Leverage alternative solutions – including demand-side factors and CER developments
Read our submission here: Nexa Advisory – VicGrid Draft VTP submission