The Australian Government welcomes the release of the Australian Energy Market Operator's (AEMO) final report on reinforcing the transmission network in Western Victoria, moving key upgrades to the grid a step closer.

These upgrades were recommended by AEMO in its Integrated System Plan (ISP), which outlined the transmission upgrades needed to keep a reliable and affordable grid into the future.

Transmission is playing an increasingly important role in managing the intermittency of renewables and sharing reliable generation across the National Electricity Market (NEM).

Western Victoria is experiencing an influx of wind and solar connections, but without sufficient planning by the Victorian State Government the generation is being curtailed and putting stress on the grid.

With up to 6000 megawatts of new renewables expected to connect to the region's transmission network by 2030, these issues will only be exacerbated.

AEMO has taken the responsible step of securing transmission, increasing system strength in the region and providing a long term pathway for greater interconnection with NSW.

However, the Australian Government remains concerned that reckless Andrews Labor Government actions are hurting Victorian, Tasmanian and South Australian energy consumers and adding hundreds of millions of dollars in cost.

We have already seen outages last summer and the situation in Victoria threatens to again leave Victorians in the dark.

AEMO's decision complements the Government's support for large scale transmission development to provide security for Victorians. This includes $56 million to accelerate the delivery of the Marinus Link interconnector, which will help unlock the large scale storage provided by Tasmania's Battery of the Nation project.