Tuesday, 15 August 2023


Questions without notice and ministers statements

Electricity infrastructure


Peter WALSH, Lily D’AMBROSIO

Electricity infrastructure

Peter WALSH (Murray Plains) (14:29): My question is to the Minister for Energy and Resources. Has the government modelled the cost savings for Victorian power users of the Victoria Energy Policy Centre proposal to upgrade existing major transmission lines in north-west Victoria rather than build the expensive VNI West proposal?

Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (14:30): I thank the Leader of the Nationals for his question. We know that the more renewable energy we build in this state, the more power we create for our state, and that gives us security of energy supply, lower prices, reduced emissions and tens of thousands of jobs for Victorians right across this state. Let me be really clear: you cannot do that, you cannot say on the one hand you support energy security, energy reliability, cheaper power and jobs without having transmission to take the power –

Peter Walsh: On a point of order, Speaker, on the issue of relevance, the question was about the comparison between two proposals to bring renewable energy into the grid. It was not about not having a proposal to bring energy into the grid. I would ask you to bring the minister back to actually answering that question, please.

The SPEAKER: The minister was being relevant to the question that was asked.

Lily D’AMBROSIO: One thing is for sure: our government is always on the side of lower power bills for every Victorian, more supply, clean supply and more jobs. On the matter of VNI West, that is a matter that is being managed through AEMO, which is responsible for the planning for this piece of infrastructure. Their job is to take on board the thousands of submissions that have been made to them by a whole range of stakeholders – scientists, farmers and a whole range of people – to decide what the best route will be and deliver the best economic value for money, and not just economic value but jobs, which are really important, and lower power prices for Victorians, and that is what will happen.

Peter Walsh: On a further point of order, Speaker, coming back to the relevance of the question, this is about whether the government has done the modelling to do what the minister is talking about, and she has not addressed that question, because ultimately it will be Victorian power users who will pay the costs of this project.

The SPEAKER: Order! Points of order are not an opportunity to expand on the question. I cannot direct the minister how to answer the question, but she was being relevant to the question that was asked.

Lily D’AMBROSIO: Just lastly, Speaker, it is the role of the market operator to make those assessments. It has been for a long time, and it remains the case for the VNI West project. It is not for me or my department to second-guess the process that the market operator has in place, so if you have got a view on it, maybe you should make a submission to AEMO.

The SPEAKER: Order! I remind the minister not to use the word ‘you’.

Peter WALSH (Murray Plains) (14:33): The Victorian Energy Policy Centre proposal to upgrade the existing major transmission lines in north-west Victoria would save Victorians $1.1 billion on their power bills each year. Will the minister direct VicGrid to undertake detailed modelling on this proposal against its Victorian transmission investment framework before she commits Victoria to VNI West and even higher household power bills?

Lily D’AMBROSIO (Mill Park – Minister for Climate Action, Minister for Energy and Resources, Minister for the State Electricity Commission) (14:33): I thank the Leader of the Nationals for the supplementary question. Can I be really clear to the member of the Nationals: these matters are under consideration by the market operator. Can I say that the market operator themselves have analysed every consultation, every submission that has been made to them, including those submissions made by the VEPC, and have determined that they are incorrect on numerous fronts. I would be happy to share a link with AEMO’s summary of that report that you so generously referred to as being somehow some economic final statement on the value of this project. Our government is absolutely committed to a renewable energy future that is going to reduce our power bills and will create thousands of jobs, and of course you need to make sure that you are able to take the energy from where it is generated right across the state through transmission.