NSW releases energy strategy backing plans for $1.28bn interconnector with SA
New South Wales has backed a billion dollar power plan to link its grid to our state via new interconnection, as SA pushes to fast track a project it says will cut bills and secure the system.
New South Wales has backed a billion dollar power plan to link its grid to our state via a huge new extension cable, as South Australia pushes to fast track delivery of a project it says will cut bills and secure the system.
The NSW Government has released a long-term power infrastructure strategy that has more interconnection as a centrepiece and plans links to SA, Victoria and Queensland.
The estimated cost of the SA “Riverlink” is by far the most expensive at $1.28 billion, and carries an expected completion date of “by 2023”.
Both the Victoria and Queensland cables, smaller and cheaper than the 750MW SA proposal, are set for delivery in 2022.
SA Energy and Mining Minister Dan van Holst Pellekaan has told The Advertiser he hoped early planning work on the NSW side of the border could accelerate a possible staged construction that would unlock benefits for SA consumers as soon as 2021.
Mr van Holst Pellekaan also said he was confident SA would send more energy to NSW than comes back when the link is operating, as excessive wind energy that often can’t be used at all is exported.
“We have got ample, often overabundant and very, very cheap wind,” he said. “It’s actually shut down sometimes.
“I’m confident we will export more than we will import through this interconnector.”
Modelling released earlier this year by poles and wires firm ElectraNet found interconnection to NSW could save SA consumers about $30 per year, as the Mid North is linked to Wagga Wagga.
It would be in addition to a sole existing link with Victoria, which failed in 2016 and became a major factor in the statewide blackout.
SA has pushed for a two-phase build into NSW, which would unlock more power trading as soon as 2021.
NSW’s new infrastructure plan says a $1.28 billion link to SA and other interconnection projects would “more than pay for themselves by enabling efficient investment and use of generation and storage”.
Mr van Holst Pellekaan said it was “very encouraging” that NSW was also backing a key plank in SA’s power plan.
He said work on route planning, environmental approvals and landholder negotiations should be undertaken as soon as possible to clear the way for a rapid build if the project is ultimately given the green light.
“We’ve already committed money to do some of that into NSW,” Mr van Holst Pellekaan said. “We want to know if they have identified something different, that they’re going to put money into, that will speed things up even more.”
Opposition energy spokesman and former minister Tom Koutsantonis said he feared the interconnector would make SA more reliant on other states, as new power plants were built in NSW instead.
“It makes complete sense for NSW to support an interconnector, because it would probably generate more investment there and less in SA,” he said.
“They have a larger market, and that gives people the possibility to consolidate in NSW at the expense of SA.”
Mr Koutsantonis said he had specific fears for a major solar thermal project planned in Port Augusta, over the future of a large AGL-owned gas-fired power station on Torrens Island near Port Adelaide.
Australian Energy Council chief executive Sarah McNamara said projects must be put through a rigorous analysis before getting the sign off.
“This is essential to both protect customers from unnecessary costs, and provide competitive industry confidence,” Ms McNamara said.
“The NSW Government’s strategy appears to be seeking to accelerate the initial stages of analysis for NSW projects but remains committed to a national process with respect to the investment case.
“It is important to maintain a stable and transparent process which occurs through the existing investment test.
“In that way we can minimise market investor risks and ultimately protect customers.”