Victoria's election pits Labor's $7.6bn transmission line against Coalition's gas-focused plan

With the Yallourn coal-fired station slated to close in 2028, Victoria's energy future has become a pivotal election topic. Labor's government signed a $7.6 billion contract with Iberdrola to construct a 240-kilometre high-voltage line, VNI West, intended to import renewable power from the Wimmera and New South Wales. The Coalition, under pressure from One Nation and rural constituencies, vows to abandon the line, arguing it lacks a social licence and will instead rely on gas and a competitive auction for firm generation.

Energy Minister Jaclyn Symes warned that the opposition's move could trigger blackouts and higher bills, while Shadow Energy Minister David Davis claimed the current plan risks lights going out. Experts such as Tony Wood and Gavin Dufty contend that gas supplies are dwindling and that the state lacks sufficient backup capacity, making the reliance on VNI West or new renewables crucial. The debate also highlights broader renewable project delays, rising electricity demand from data centres, and potential impacts on regional employment.