Transmission Company Victoria (TCV) has preferred groups for the final stage of the AUD 3.5bn (USD 2.3bn) VNI West electricity interconnector delivery/development partner tender in Victoria, two sources said.

They include a consortium of Australian major gas pipeline operator APA and French energy giant EDF; and separately Lumea, owned by Transgrid, the NSW electricity network operator, the sources said.

Acciona is also likely part of another group in contention, although the Spanish builder may be too stretched on big network projects across the country to take on another, one of the sources said.

Spokespeople at all three groups declined to comment.

TCV, set up by the Australian Energy Market Operator (AEMO) to oversee the project, closed registrations of interest in September for the high voltage network project.

It said it would send out an invitation to tender to those shortlisted from the ROI this quarter.

Market sources said the procurement structure was still unclear, but the group that wins the tender will then itself tender for additional contractors and possibly raise finance itself to build the project. PPP sponsors may take part, depending on the final structure of the deal.

The winning consortium will ultimately become the Transmission Network Service Provider, or operator, of the new grid connection.

The Victoria to New South Wales Interconnector West Project (VNI West) will connect with new network connections being built by infra fund-owned Transgrid on the other side of the border in New South Wales.

TCV released the preferred corridor for the new 500 kilovolt lines yesterday. It is expected to be about 70m wide and run from the state border south for a distance of about 240km past the towns of Kerang, Boort, Charlton and St Arnaud.

VNI West will connect with another new network connection – the Western Renewables Link – that will take power from solar and wind farms in northwest Victoria and southern NSW to Melbourne.

A spokesperson for AEMO declined to comment on the shortlist.

“The Australian Energy Market Operator has conducted a registration of interest process to find a development/delivery partner for the Victorian component of [VNI West].

“The next stage of the process will be the release of an invitation to tender to selected tenderers.”

The successful partner is expected to be announced in early 2025.

APA and EDF are also planning to bid together for the New England Renewable Energy Zone (REZ) network operator tender in NSW – due to start early next year – as is Lumea.

Acciona is regularly part of consortia bidding on electricity network construction projects. It is part of the ACEREZ consortium – also including Endeavour Energy, Cobra and Capella Capital – that won the PPP contract to build, finance and operate the Central West Orana REZ network in NSW.

A swathe of new grid projects to connect renewables across the country are facing strong opposition from local landholders.

VNI West and the Western Renewables Link have faced more strident opposition than most from farmers whose land the lines are crossing. Several yesterday told local media they would continue to try to get VNI West cancelled.