ElectraNet gets SA environmental approval for Project EnergyConnect link to NSW

A greenlight for an interstate electricity link sets the state up to be an export powerhouse while saving families money, the government says amid claims the deal’s come too late.

The $2.3bn electricity interconnector to NSW – tipped to save households $100 a year on their power bills – has been granted environmental approval by the state government.

The approval puts the powerline, called Project EnergyConnect, on track to begin construction early in 2022.

The project will drive down prices by allowing more cheap renewable power to connect to the grid, its proponents say.

“Project EnergyConnect will transform South Australia into a renewable energy export giant, driving billions of dollars of new investment and creating thousands of jobs across the state,” Deputy Premier and Energy and Mining Minister Dan van Holst Pellekaan said.

“EnergyConnect ticks all the boxes – reducing electricity bills, reducing emissions, protecting against a Labor-style statewide blackout and creating thousands of jobs.

“Project EnergyConnect will deliver an additional $100 a year savings for households.”

The 900km transmission line would run from Robertstown to Wagga Wagga in NSW.

ElectraNet said the SA decision was a major milestone, leaving only federal environmental approval to finalise.

Energy and Mining Minister Dan van Holst Pellekaan with ElectraNet chief executive Steve Masters.

Environmental assessment began in 2018, engaging traditional owners, landholders, local communities, interest groups and governments, ElectraNet chief executive Steve Masters said.

More than 1200 people visited an online, project display room.

“Our final, approved route takes into account environmentally sensitive areas and we’ve engaged with all affected communities to minimise project impacts,” Mr Masters said.

Concerns about the initial route included the impact on threatened bird species who live in old-growth mallee, such as the black-eared miner.

Consultation with Birdlife Australia, the Australian Landscape Trust and others led ElectraNet to divert the route “significantly” on Calperum and Hawks Nest stations to avoid habitat areas.

The route bypasses Gluepot, Loch Luna and other Riverland reserves.

A black-eared miner bird. Picture: Dean Ingwersen.

About 210km of the 800 megawatt line would be in SA, with proponent ElectraNet to pay $457m of the cost. Partner TransGrid will pay $1.8bn for work in NSW.

Both companies have committed the funding and approval has been granted by the Australian Energy Regulator which said the project would add $17 a year to household bills from 2023-24.

Modelling by ACIL Allen for ElectraNet said that extra cost would be more than covered by wholesale price falls, delivering consumers a $100 a year net benefit.

Opposition Energy spokesman Tom Koutsantonis challenges the claim because wholesale prices were already lower than levels predicted in the modelling.

Mr Koutsantonis expected investors in new wind and solar farms to go to NSW where government grants were available, while in SA all they could expect were “the warm wishes of the Premier”.

In NSW, the project has environmental approval for the section from the SA border to Buronga. TransGrid is finalising its environmental impact statement for the eastern section, to Wagga Wagga, which it expects to publish early in the new year.