NSW approves controversial $4.8bn Humelink transmission line
The approval is crucial in unlocking a swathe of renewable energy projects – including the Snowy Hydro 2.0 – but it is fiercely opposed by some communities.
NSW has approved the $4.8bn Humelink – a controversial high voltage transmission line that will eventually connect Snowy Hydro 2.0 but has emerged as a lightning rod of opposition, as the state moves to accelerate the rollout of its ambitious transition plan.
The approval for Humelink – which now requires approval from the federal Labor government – keeps the project on course to be ready by the second half of 2026, when it will unlock Snowy Hydro and a plethora of other renewable energy projects. However, the approval will likely also stoke community opposition.
Humelink is one of Australia’s most critical infrastructure projects, a fact acknowledged by Paul Scully – NSW’s Minister for Planning.
“This critical state significant infrastructure project will enable more renewable energy generation to enter the market supporting NSW’s emissions reduction targets,” said Mr Scully.
“Humelink is an important investment in NSW’s energy capability, increasing the amount of renewable energy that can be delivered to consumers and helping the state move towards a net-zero future.”
The Australian Energy Market Operator in its $122bn blueprint for Australia’s energy transition said the 365km Humelink was a priority project that would allow vast arrays of new renewable energy sources to come online.
Developers require certainty that transmission lines will be available before committing significant amounts of money to the project and uncertainty is a key reason many projects have remained frustratingly slow to materialise.
But recent data shows an uplift in the rollout of developments – reviving the slim hope that Australia may meet its 2030 transition targets.
Labor has set the target of having renewable energy generate 82 per cent of Australia’s electricity by 2030, a target that is on course to be missed.
Labor insists Australia can still meet its target, highlighting the recent acceleration as evidence of the viability of the plan.
The Clean Energy Regulator on Thursday said 968MW of capacity was approved in October, bringing the total capacity approved in 2024 to 3647MW from 446 power stations. In 2023, the CER approved a total of 2206MW. Much of the new capacity came from the MacIntyre Wind Farm in Queensland – one of Australia’s largest wind farms with a capacity of 923MW.
Labor has said taxpayers will underwrite some 32GW of new wind, solar and batteries to kickstart work.
Under the scheme, should the wholesale electricity price fall below an agreed threshold, taxpayers will compensate the renewable energy project. Should the wholesale electricity price exceed a metric, developers pay the government – a design that removes revenue risk from developers and accelerates much-needed investment.
Labor hopes to grow grid-scale projects while households continue to bolt-on rooftop solar.
Australia has the world’s largest proliferation of rooftop solar, and data released on Tuesday shows the number of installations tops four million.
Rooftop solar allows households some relief to recent bill increases, but the untamed proliferation has piled pressure on coal producers.
The surge in rooftop solar means Australia’s National Electricity Grid often has more electricity that demand. Coal producers, which generate throughout the day and have limited capacity to turn down production, are forced to sell electricity for zero – meaning they are often losing significant amounts of money during sunny days. Coal power stations can make money when the sun sets but a rise in batteries means many are struggling to remain financially viable.
In its final 2024 Integrated System Plan, AEMO expects the majority of all coal-power generators to have nearly exited the system by 2035 and the remaining few would have been mothballed by 2038, which the market operator said required urgent delivery of replacements.
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