Big power savings in EnergyConnect link, says minister Angus Taylor
The Morrison government’s $180m underwriting support for the EnergyConnect upgrade is forecast to save customers hundreds of millions of dollars.
Electricity customers in NSW are expected to save hundreds of millions of dollars as a result of the Morrison government providing $180m in underwriting support to enable the EnergyConnect project to be built at a larger capacity.
The upgrade of a key section of the project from south of Coleambally to Wagga Wagga will “future-proof” the transmission network by integrating more low-cost, zero-carbon renewable energy into the grid. This is key to the development of the planned southwest renewable energy zone, and will enable the full flow-on benefits from the Snowy 2.0 project.
It will also remove the need for duplicate lines to be built for the Victoria-NSW interconnector, known as VNI West.
VNI West is expected to deliver 1800MW of additional capacity between NSW and Victoria, improving reliability for Victorian consumers.
It will also increase competition and unlock additional generation capacity in the system, including from Snowy 2.0.
“Our $181m support for this line upgrade builds on a $250m program, announced in the 2020-21 project to support key projects including VNI West, Tasmania’s Marinus Link, and EnergyConnect, which has already been able to reach final investment decision thanks to government support,” the federal Energy and Emissions Reduction Minister Angus Taylor said.
“Investments in projects like this one will help to unlock reliable electricity supply like Snowy 2.0, deliver substantial cost savings, minimise landholder impacts and help keep the lights on and prices low.”
TransGrid said it had anticipated the future need to upgrade the 330kV transmission lines to 500kV between Dinawan and Wagga Wagga when finalising the contractual arrangements for EnergyConnect.
This meant the work would be delivered as part of the existing contract with construction partner, the SecureEnergy joint venture.
Last May, after regulatory approval of EnergyConnect, TransGrid confirmed it would invest $1.8bn in the NSW section of the 900km interconnector.
The project is expected to save NSW customers $180m a year and provide a missing link in the National Electricity Market by connecting more low cost renewable generation and reinforcing connectivity between the state grids of NSW, South Australia and Victoria.
TransGrid said it was making the investment now to ensure the upgrade of the transmission network was accelerated to support the rapid transition to renewable energy.
Executive manager of delivery Craig Stallan said by investing in the upgrade now, NSW households would avoid paying an additional $600m to build a new connection in the future.
“We invest in our network to deliver reliability, affordability and sustainability – as the integrated system planner in NSW, we are constantly thinking ahead to provide the best outcomes for customers, communities and the energy system as a whole,” Mr Stallan said.
“Greater transmission capacity makes our transition to a clean, low cost energy system possible.
“(This) announcement will unlock 50 per cent more capacity now and allows for an additional 250 per cent (for a total of 300 per cent) when operating at 500KV.”
NSW Energy Minister Matt Kean welcomed the Morrison government’s support for a “critical” piece of infrastructure. “I want to thank the commonwealth for getting this project over the line and helping deliver reliable, affordable and clean electricity for the state,” Mr Kean said.
“The southwest renewable energy zone will drive jobs and investment into regional NSW, and help to provide homes and businesses across the state with some of the cheapest, cleanest electricity anywhere in the world.”
Construction of EnergyConnect is expected to be completed in 2024-25.