THE KerangLink electricity interconnector will be fast-tracked and completed by 2028, under a joint plan by the federal and Victorian governments.
Prime Minister Anthony Albanese announced on Wednesday morning the project would be kick-started by a $750 million concessional loan through the Clean Energy Finance Corporation, as part of his government’s Rewiring the Nation plan.
KerangLink, otherwise known as the Victoria-New South Wales interconnector, or VNI West, is promised to unlock 4000MW of new power generation, supporting more than 2000 direct jobs during construction and generating $1.8 billion in net market benefits, including for electricity users in the Mallee.
It is understood that a raft of new local commercial projects have been waiting on the KerangLink green light before going ahead.
In another major power energy announcement by Mr Albanese, Victoria will contribute equally with the Tasmanian and Commonwealth governments to a total 20 per cent of project equity to deliver Marinus Link, which is based on two undersea power cables between Tasmania and Victoria.
The KerangLink project has been forecast to cost up to $3.3 billion, and the Marinus Link $5 billion.
Originally scheduled for completion by 2031 and approved by the Australian Engergy Market Operator last December, KerangLink will connect Victoria and NSW electricity networks by infrastructure that passes through the Kerang area, with the upgrading of current infrastructure and development of new transmission lines enabling local renewable energy facilities to feed into the national grid.
Mr Albanese described the Rewiring the Nation announcements as “an historic day for Victoria and for Australia with the rollout of these key projects putting us on track to be a renewable energy superpower”.
“An electricity grid built for the 21st century is absolutely critical, but until the election in May there was no plan to deliver, let alone to do so at lowest cost for consumers,” he said.
Victorian Premier Dan Andrews said the KerangLink and Tasmanian projects would mean “more jobs, cleaner energy and cheaper power bills for Victorians”.
“Victoria has cut emissions by more than any other state, tripled the amount of renewable energy and created thousands of jobs,” he said.
“We’re not just talking about climate action. We’re getting on with it.”
Gannawarra Shire Council Mayor Charlie Gillingham said it was welcomed news, especially as communities dealt with the flood emergency.
“Council is pleased to have led the way in advocating for KerangLink to occur, and it would not be possible without the support and advocacy from our local, state and federal government colleagues,” he said.
Acting chief executive Geoff Rollinson said the developments would open up billions of dollars worth of investment in the shire and generate millions of dollars to council in future payment in lieu of rates income.
“KerangLink paves the way for the Gannawarra to facilitate the creation of Australia’s largest renewal energy zone in the 21st century and be as transformational to the landscape of northern Victoria, as was the development of irrigation in the early 20th century,” he said.
In a joint statement, Murray River Group of Councils said it was a massive win for northern Victoria.
Chair Cr Libro Mustica, of Moira Shire Council, called the announcement “a once-in-a-generation opportunity for our region”.
“We have the solar resource, suitable available land and a track record in the region with projects already delivered in Gannawarra, Swan Hill and Mildura,” Cr Mustica said.
“That is why we have projects already with planning permits, ready to go that could generate over 4GW of electricity.”
“The only thing holding them back is the transmission network is constrained.
“Once Kerang Link is built and the renewable energy zones are developed, we will see these solar farms constructed and delivering renewable electricity to the grid.”
