The Victorian Farmers Federation (VFF) says the Victorian Government must rethink the viability of the VNI West Transmission Project after the Australian Energy Market Operator (AEMO) revealed huge cost blowouts to the project in a report released overnight.
AEMO’s 2025 Electricity Network Options Report estimated the project’s cost had more than doubled from estimates in May of $3.6bn to $7.6bn in their latest report. The report warns that number may climb as high as $11.4bn, prompting warnings from AEMO that it may need to reconsider its support for some projects.
VFF President Brett Hosking said the estimated cost blowout adds further weight to calls for the project to be scrapped.
“We know this is a failed project and this report only adds to calls for the government to scrap it entirely.”
“To date the energy transition has been a failure and the Victorian Government is risking smooth and reliable energy transmission by continuing to force the VNI West project through,” Mr Hosking said.
Mr Hosking said the Victorian Government’s handling of the energy transition has been incredibly clumsy, particularly in how they engage and partner with rural communities along both VNI West and WRL projects and it was time for an urgent rethink and change of approach.
“Owning their mistakes and starting again with landholders and community as partners is the only way to deliver a smooth and timely transition.”
“Farmers know we need deep, economy wide cuts to emissions. We know the world is changing and we’re part of that change, but we won’t cop being steamrolled in the process.”
“There’s huge opposition to this project throughout rural communities, and rightly so. This won’t change until the government and AEMO revisit their approach and treats farmers and our rural communities with the respect they deserve,” Mr Hosking said.