Victorian Premier Ben Carroll has ordered an immediate independent assessment into the cost of the Western Renewables Link (WRL), a 190km transmission line from Bulgana in Victoria's west to Sydenham in Melbourne's northwest.
"I respect the public's money," Mr Carroll said in a statement on Tuesday afternoon.
"This project was planned almost 10 years ago and Victorian consumers deserve updated, transparent costings."
The high-voltage project was originally costed at $479 million in 2019 but a PWC document from 2024 put the figure at $1.53 billion.
Its proposed route passes through Labor seats, including parts of Melton, Ripon and Eureka..
WRL and VNI West - a second proposed 500kV double-circuit transmission line connecting Victoria and NSW - have faced fierce opposition from farmers over compulsory land acquisitions.
Less than an hour before the premier's announcement, Energy and Resources Minister Jaclyn Symes gave no indication the Labor government was getting cold feet.
"Western Renewables Link and VNI West are central to this government's plans to keep the lights on and bills down," she told the Committee for Economic Development of Australia's Victorian energy security event.
Ms Symes had spoken with government agency VicGrid and no compulsory acquisitions would occur during the review, Mr Carroll said.
The review will be complete by the end of 2026 and its findings made public.
The  government last week pulled the pin on a creating a renewable energy zone in Victoria's central north, between Bendigo and Tatura and Shepparton and Glenrowan.
Ms Symes, who used her speech to cast doubt on the credibility of gas and nuclear forming part of Victoria's future energy mix, said the zone was no longer required and would have disadvantaged existing local projects..
"I had no desire to cause those communities further anxiety," the Northern Victoria MP said.
The Victorian coalition has promised to scrap VNI West and pause and review WRL if it wins the November election.
Opposition energy spokesman David Davis suggested WRL's ultimate cost could be higher than $1.5 billion, pointing to a 2025 report that listed its price tag at about $4 billion.
In his speech, Mr Davis teed off on Labor for launching an "ideological war on gas" and reiterated the coalition's plan to repeal Victoria's gas substitution roadmap.
"We believe there is gas to be got out there," he said.
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