Victorian Energy Minister: ‘If these projects are not built, the lights will go out’

Energy Minister Lily D’Ambrosio has knocked back opposition to new transmission projects, warning the entire state’s energy is at risk if they don’t go ahead.

The state’s energy minister has slapped down opposition to new controversial transmission projects proposed to be built across properties in Victoria, warning “if these projects are not built the lights will go out”.

Appearing before the Public Accounts and Estimates Committee, Victoria’s energy minister Lily D’Ambrosio delivered the sobering message that if the state doesn’t push ahead with suite of transmission projects there will not be enough power to run the state.

She was referring to projects currently underway including the massive $3.3 billion VNI West project, the $370m Western Renewables Link, and a further $4.3 billion in new transmission projects planned for the next 15 years, which will see more high powered transmission lines built in Victorian communities including areas in Melbourne’s west.

“If we do not build these transmission projects the lights will go out and the cost of power will go through the roof,” she told the panel.

Ms D’Ambrosio was being grilled by National MP Jade Benham who said there were serious concerns about the impact on farmers, but also the cost to Victorians “who pay their energy bills now”.

Lily D’Ambrosio delivered the sobering message that if the state doesn’t push ahead with suite of transmission projects there will not be enough power to run the state. Picture: NewsWire / Diego Fedele

Ms Benham pointed out that the $4.3 billion being proposed for future suite of transmission projects in Victoria could also see costs vary by a 150 per cent range, which could see cost blowouts to $8.6 billion, adding more power price pain to Victorians.

When asked about media reports that the real cost could be closer to $20 billion Ms D’Ambriosio rubbished the figure, but would not clarify the top range costs that had been modelled.

The minister would also not detail how much the projects would add to household bills in terms of network costs.

Ms D’Ambrosio responded that the cost factor “was ultimately about delivering a net benefit to consumers” and there was “a lot of refinement” still happening. She also told the panel that the transmission network costs are “only a small” value of the overall power bill when they arrive in the mailbox.

Her appearance comes after VicGrid, the government agency in charge of planning the state’s ambitious renewables rollout, released a new plan last month outlining transmission projects needed as well as maps signposting where wind and solar is best suited in Victoria.

MP Jade Benham said there is serious concern about the impact on farmers. Picture David Geraghty

It flagged the new $4.3 billion plan for four more transmission lines including a second radial line and tie in loop in Gippsland to facilitate offshore wind, a new line between Sydenham and Tarrone, a new line between Truganina and Deer Park, and an additional short line between Hazelwood and Yallourn.” 

Ms D’Ambrodsio also detailed a bundle of new gas infrastructure projects and offshore processing terminals set for Victoria in the last 12 months that totalled almost $2 billion, which she said would be an important contributor to the state’s energy mix moving forward.

The minister said it was no well known that gas resources are “depleting” and wouldn’t rule out importing gas in the future to prop up the state’s power network.

Originally published as Victorian Energy Minister: ‘If these projects are not built, the lights will go out’