Business & Rural
9 June, 2026
Landowner payments to increase along VNI West line
The increase in the landholder benefit payment reflects analysis of land values, land use and feedback gathered across multiple transmission projects and renewable energy zones.
VICGRID has increased payments to landholders on the controversial VNI West project in what they say is a recognition of the “important role they play in the development of this critical piece of electricity infrastructure”.
VicGrid chief executive Alistair Parker said the landholder benefit payment for the Victorian portion of the project would increase to $56,000 per hectare of transmission easement from $46,000, in line with payments to landholders on the Western Renewables Link project.
“Landholders hosting transmission infrastructure are playing a really important role in helping deliver the reliable and affordable energy that will power Victoria’s homes, business, hospitals and schools for generations to come,” Mr Parker said.
The increase in the landholder benefit payment reflects analysis of land values, land use and feedback gathered across multiple transmission projects and renewable energy zones.
The payment is in addition to compensation payments set out in Victorian law which are required to fully compensate landholders for any impact to the value of their property or their farming operations. Recent compensation agreements in Victoria have run from the hundreds of thousands to multiple millions of dollars, depending on the size and operational nature of each property.
It is also in addition to landholder payments introduced by the State Government of $8,000 per kilometre of transmission hosted, per year for 25 years, indexed for inflation. VicGrid has also updated access payments for survey and project development activities.
“Careful planning and design of transmission infrastructure can minimise impacts on properties and farming operations and there are many farms across the state that have long hosted transmission and are highly productive,” Mr Parker said. “We know there will be impacts from new infrastructure, so we are making sure this is recognised and landholders receive fair payments and compensation for those impacts.
“Our responsibility is to deliver them in a way that recognises impacts on landholders and communities, while supporting the long-term energy needs of Victorians.”
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