Community members have taken the state government to court for fast-tracking a controversial transmission line project's development.
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The case against a Ministerial Order to build the VNI West transmission lines project has been put forward at a hearing in the Victorian Supreme Court.
On Thursday, September 7, the Supreme Court heard the first day of trial in the case of the Moorabool and Central Highlands Power Alliance against energy and resources minister Lily D'Ambrosio.
The case follows Minister D'Ambrosio issuing two orders to progress work on the VNI West project, which will stretch high voltage powerlines from western Victoria to NSW.
The orders, made in February and May this year, allowed early works to start on the transmission line project without redoing a cost benefit analysis, known as Regulatory Investment Test of Transmissions, or RIT-T.
The orders required AEMO to adopt a "preferred" route connecting to the planned Western Renewables Link (WRL), which will pass to the north of Ballarat and has faced strong community opposition, at a terminal station at Bulgana near Ararat, then linking to a terminal station near Kerang in north central Victoria, before crossing the Murray River north of Kerang.
Minister D'Ambrosio said at the time the fast-tracking orders would overrule clauses of the National Electricity (Victoria) act, which had "stifled" progression of the project.
The alliance has objected to the two ministerial orders, questioning the legality of the order's requirements.
Thursday's hearing saw the Alliance's lawyer Nick Wood argue the minister's orders were superseded by legislation in the National Electricity act requiring a cost benefit analysis for actionable energy projects.
The Supreme Court proceeding occurs as the Australian Energy Regulator considers a dispute notice lodge on behalf of the Moorabool Energy Alliance.
The notice relates to flaws in AEMO's cost benefit analysis test on the WRL project, and has been put on hold pending the outcome of the energy alliance's Supreme Court hearing.
The matter will return to the Supreme Court on Friday, September 8, where lawyers for the energy minister are expected to make their response.
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