Coalition VNI West decision puts Victoria's energy security at risk

The half-century-old Yallourn coal-fired power station is scheduled to close in 2028. VNI West is a critical part of the infrastructure needed to replace ageing coal, allowing more electricity to travel between Victoria and New South Wales when it is needed. 

Clean Energy Council Chief Executive, Jackie Trad, said cancelling VNI West did nothing to change the fundamental problem confronting the next Victorian Government. 

“Yallourn is closing. That is 1480 MW leaving the system inside the next parliamentary term. Cancelling VNI West does not make that closure go away. It just decreases the amount of electricity Victorians have access to, inevitably pushing up prices and electricity bills,” Ms Trad said. 

“Before anyone tears up the plan, Victorians deserve to know what the replacement plan is. Where does the electricity come from? When will it be available? And how will we get it to Victorian homes and businesses when we need it? 

“Energy security means having options. When a generator unexpectedly goes offline, when demand surges or when local supply is tight, Victoria need to be able to draw electricity from elsewhere. Cancelling VNI West gives Victoria fewer options, not more.” 

VNI West is a planned high-capacity connection between Victoria and New South Wales that would substantially increase the amount of electricity the two states can share. 

That additional capacity would give Victoria greater access to secure electricity supplies from New South Wales during periods of tight supply, while providing a release valve to avoiding load shedding when Victorian demand is low.  

The Coalition has said it will instead seek additional firm generation, with gas-fired generation expected to provide much of that capacity. Ms Trad said replacing a planned electricity connection with greater reliance on a declining gas supply and on projects that don’t exist raised serious questions about the Coalition’s energy security plan.

“The Coalition says gas will fill the gap, but Victorians deserve to know where that gas is actually going to come from,” Ms Trad said.

“Victoria’s existing gas fields are declining. Announcing a tender does not create gas reserves. It does not build a power station and it does not put additional electricity into the Victorian grid.” 

The Clean Energy Council is calling on the Coalition to publish a detailed supply and demand plan for 2028 to 2035 showing what will replace Yallourn, how much new generation and storage will be required and when it will be operating. 

It should also identify the gas fields and reserves underpinning its proposed expansion of gas-fired generation and publish an independent assessment of the implications of cancelling VNI West for Victoria’s electricity reliability. 

“If you are going to cancel one of the major pieces of Victoria’s future electricity system, you have an obligation to show people what replaces it,” Ms Trad said. 

“Cancelling VNI West without a credible replacement leaves Victorians in the dark. Australians are sick and tired of chaos abroad. Any party wanting to govern this state needs to have a transparent, orderly and fair energy plan for Victoria that powers our homes and businesses reliably and affordably.

“Victorians are entitled to see a serious energy security plan before they are asked to take that risk,” she said.

ENDS

For more information or to arrange an interview, please contact: 

Liam Straughan
Clean Energy Council Media Officer

+61 409 470 683