The Australian Energy Market Operator (AEMO) has hit back at claims from energy experts that two major transmission line projects, planned to be built north of Ballarat, would lead to higher bills and lost time.
On the eve of the full release of submissions this month, AEMO has argued western Victoria must play its part in future clean energy generation and distribution including transmission lines to transport power and act as a back up for the east of the state.
As part of the market operator's recent public consultation for the Victoria to New South Wales Interconnector West (VNI West) project, the group heard more than 500 submissions, including a scathing report from the Victorian Energy Policy Centre (VEPC).
VNI West is a proposed 500 kilovolt overhead transmission line that would connect Victoria's new 190 kilometre Western Renewables Link (running from Western Victoria to Melbourne) with the EnergyConnect line in NSW.
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The controversial transmission lines would be built to Ballarat's north, which residents say would destroy valuable farming land and their way of life.
In the VEPC submission, the energy experts says the state would be better served by using existing energy infrastructure in Gippsland in combination with renewables, as opposed to the construction of new powerlines.
The VEPC also warned of potentially increased power bills - as much as 25 per cent - as a result of the VNI project, and an increased risk of bushfires and other natural disasters.
The 118 page VEPC submission also questioned the market operator's Integrated System Plan, which maps out the nation's electricity network for the next 20 years.
In response, AEMO issued a statement addressing some of the VEPC's claims, ahead of the full release of public consultation submissions in May.
The market operator argued independent analysis found energy capacity needed to be developed in both Gippsland and western Victoria - with the western half of the network providing a back-up in the case of weak winds in the Bass Strait.
"Detailed engineering and economic analysis in our ISP demonstrate Victoria will need to harness both existing transmission and build new transmission infrastructure to connect renewable generation from the west and northwest regions of Victoria," AEMO executive general manager of system design Merryn York said.
"This is not an either-or situation.
"Robust expert modelling detailed in multiple iterations of the ISP demonstrates that new transmission infrastructure is needed in both the east and the west of Victoria to ensure secure electricity supply to meet growing demand from Victorian consumers.
"VNI West provides vital insurance against weather patterns in Victoria and an economy that is increasingly reliant on energy from variable, renewable generation.
"It's crucial back-up for those still days in the Bass Strait when Gippsland's wind turbines are idle, providing access to the sunshine in the northwest to power homes and workplaces throughout Victoria."
The market operator also denied power bills would be increased as a result of the new transmission lines, as argued in the VEPC submission.
"We estimate an increase in the order of 25% for consumers in the Victorian transmission cost component as a result of the VNI West and WRL projects," the operator said.
"However, this will be more than offset by lower wholesale costs from utilising a portfolio of renewable generation sources," Ms York said.
The VNI West assessment and conclusions report will be published in full in May, along with the submissions and responses to submissions for the consultation report, which concluded on April 5.
For more information, visit AEMO's website.
