“It is not a pause:” Victoria insists transmission plan on track as network denies forced land buys being used

The Victorian government has denied claims that it is backing away from plans to build the Western Renewables Link, saying this week’s announcement of a cost reassessment is neither a pause nor a review of the project.

The “clarification” comes as AusNet, the network company contracted to deliver the contested transmission project, issues its own clarification on compulsory land acquisition, which the premier most definitely has paused, saying voluntary agreements are its preferred approach.

The fate of the contested Western Renewables Link (WRL) came into question this week, after Labor premier Ben Carroll appeared to ambush his new energy minister, Jaclyn Symes, with the announcement on Tuesday of “an immediate, independent assessment” into the costs of the project, which are currently estimated at north of $1.5 billion.

Earlier that day, Symes had appeared before a Committee for Economic Development Australia (CEDA) forum on energy security, telling the audience that she would stay the course on the state’s existing plans to meet its legislated target of 65 per cent renewables by 2030.

“The most important way we can provide certainty for investors is by laying out a clear vision for transmission lines and renewable energy zones in the Victorian Transmission Plan,” Symes told the CEDA forum on Tuesday.

“Of course, this is where the choices become stark,” she added. “Western Renewables Link and VNI West are central to this government’s plans to keep the lights on and bills down, and they have been central to national planning for over a decade.”

The seemingly mixed messages were widely interpreted by the media, including Renew Economy, as a change of heart on the government’s transmission plans, which are in turn critical to the state’s transition to renewables and phase-out of coal, starting with the closure of the Yallourn power plant in 2028.

And they were too by Labor’s own back-bench, with Ripon MP Martha Haylett, who celebrated the announcement on social media on Tuesday and said that she had raised her objections to the project with three successive premiers.

But in a statement emailed to Renew Economy on Wednesday, a Victorian government spokesperson said “the costs assessment is not a pause and review,” and that “the Western Renewables Link is moving ahead and we are delivering it.”

“[The cost reassessment] is about providing transparency on the value of the project to Victorians,” the spokesperson said.

“Victoria needs more renewables and transmission to keep the lights on and bills down – and Labor is getting on with delivering both.

“Jess Wilson’s Liberal-One Nation Coalition wants to rip up renewable projects and the transmission it relies on – risking higher power bills and blackouts.”

Whatever the government’s actual intentions on WRL, the state’s energy transition is on shaky ground in the lead-up to the state election, with opposition to renewables and transmission projects in the regions – claimed by some to come from a “vocal minority” – being harnessed by politicians from the Coalition and One Nation.

Labor, too, is clearly feeling the heat in some of the state’s marginal seats, and is keen to show that it is “listening” and just as laser focused on “cost of living” as everyone else.

This is evident in the tone of Carroll’s announcement on WRL, and in some of the responses from within the party, including from the Haylett.

“I am glad that Ben Carroll has listened,” Haylett posted on Facebook. “He is pausing land acquisitions and conducting an independent review into the Western Renewables Link.”

This rapid-fire statement from Haylett, whose electorate is in the thick of the WRL wrangle, has clearly fed media “confusion” that the project is being paused and reviewed, given her use of the words “pausing” and “review.”

The tone picks up on Carroll’s own comment that while WRL “moves along this considered process, Minister Jaclyn Symes has spoken with VicGrid and can reassure the community that no compulsory acquisitions will occur during this time.”

But sources tell Renew Economy that this is a bit of creative licence from the premier – or creative reassurance – because land acquisitions are not actually happening at this stage, anyway, and are considered an absolute last resort in delivery of the project, which is still yet to get all of its development and environmental approvals.

In a separate statement to Renew Economy, a spokesperson from the WRL said that the project is “focused on supporting landowners and working to reach voluntary agreements wherever possible.” 

The project is also offering farmers and landowners boosted payments for hosting towers and lines, that for some could represent an invaluable second income to support their family businesses and operations.

“The Voluntary Hosting Benefit offers landowners $56,000 per hectare of transmission easement hosted on their properties,” the statement says. “This has recently increased from $46,000 per hectare in recognition of the important role landowners play in hosting major energy infrastructure.

“This benefit is in addition to compensation for use of the easement, which ranges from tens of thousands of dollars to multi-millions of dollars depending on the size of the proposed easement and impact on the property.

WRL says the project has signed voluntary agreements with around half of the landowners along the proposed route and is “actively negotiating with the vast majority” of the remainder.

“WRL also aims to deliver lasting benefits to regional communities along the proposed project route, recognising their essential role in enabling Victoria’s transition to renewable energy,” the statement says.

“This includes $15 million in funding made available during the project’s development phase in response to community feedback calling for earlier benefits, including a $4 million Local Grants Fund, which recently received almost 200 applications for locally-led projects. 

“The significant response to the fund highlights the community’s desire for support for local initiatives from the grants program.”

AusNet, which is contracted by VicGrid to develop and deliver the electricity transmission project and has welcomed the cost review, was also keen to stress the importance “to distinguish between voluntary acquisition discussions, the exercise of acquisition options and compulsory acquisition.”

“The Premier has announced that compulsory acquisition will be paused until the independent cost assessment is complete. However, AusNet’s preferred approach has always been to reach voluntary agreements with landholders and those discussions are continuing,” a spokesperson said in an email to Renew Economy.

“Any exercise of acquisition options would only occur once the necessary project approvals are in place.

“AusNet acknowledges the Victorian Premier’s announcement of an independent assessment into costs of the WRL and will support the review,” the statement says. 

“Our focus is on delivering value for money for Victorian electricity customers as the State transitions away from coal-fired power, while making sure landholders and communities share in the benefits of the project.”

To join more than 29,000 others and get the latest clean energy news delivered straight to your inbox, for free, click here to subscribe to our free daily newsletter.

To support independent media, and help combat the spread of deliberate misinformation and disinformation about the energy transition, you can click here to make a one off donation or become a regular supporter of Renew Economy.