We’re making our decisions transparent by publishing our options and the methodology supporting our decision, including how we responded to the important questions raised through consultation.
On this page:
Options assessment method
VicGrid developed a decision-making tool, the options assessment method, for assessing potential transmission corridor and technical options to balance competing priorities and ensure community and stakeholder feedback informed the approach.
The assessment method was used to narrow a long list of corridors and technical options to a preferred corridor option and technology. You can find more information about the assessment process in the Gippsland Options Assessment Report.
VicGrid used the preferred corridor option to create a broader study area. This is because assessments so far have been based on available desktop information.
Further technical studies, on-the-ground environmental assessments and engagement with landholders, farmers and local communities are now needed to refine and narrow the study area to a corridor (and then a route).
Reducing the study area to a corridor aims to remove land that is less suitable to host transmission infrastructure.
Identifying a preferred technology
We investigated multiple combinations of technologies, including fully undergrounding the transmission line.
The options assessment method was used to undertake a high-level analysis and identify key points of differences between options.
While undergrounding is technically feasible, it was ruled out as an option after careful analysis due to challenges including cost, engineering complexity, procurement, and timing.
We heard landholders and the community want to know the long-term cost comparison of underground and overhead, asking how and why the project cost is passed on to consumers.
To deliver affordable energy, VicGrid must balance complex factors and make decisions that are in the best interests of all Victorians. This is why we consider cost in our decision-making, to keep down impacts on power bills.
Our analysis found that an overhead line would cost between approximately $700 million and $1.5 billion, while undergrounding would cost between approximately $2 billion and $4.5 billion. The extra expense is largely due to the additional infrastructure construction costs required.
Those additional costs would be paid for by all Victorian homes and businesses through higher power bills.
Refining the study area
The next steps will be to refine the study area to a corridor, and then a route and easement. Reducing the study area to a corridor aims to exclude areas that are less suitable to host transmission infrastructure based on a range of different values and criteria.
This work will be done through detailed studies, planning and environment assessments and engagement with landholders, communities, and First Peoples. Learn more about planning and environment assessments.
