SA-NSW interconnector gets approval from Australian Energy Regulator
A proposed electricity interconnector between SA and NSW has been backed by the Australian Energy Regulator.
The Australian Energy Regulator has backed the proposed interconnector between South Australia and NSW as the best option for meeting the future electricity needs of consumers.
The AER says the proposal will help the long-term transition to low emission technologies and enhance energy security in SA, even though the net benefits will be less than originally forecast.
Chair Clare Savage says it has assessed ElectraNet’s proposal across a range of scenarios and has found the project is “robust” and will deliver economic benefits to Australian energy consumers.
Based on a construction cost of $1.53 billion, the regulator found the likely net benefits come in at about $269 million, much less than the $924 million estimated by ElectraNet.
“ElectraNet assumed that without the interconnector substantial gas-fired generation would be needed to keep the lights on in South Australia even with considerable new investment in wind, solar, batteries and synchronous condensers,” Ms Savage said.
“The AER does not think it’s reasonable to assume that such large volumes of gas-fired generation will be required when there are cheaper sources of generation already available.” ElectraNet updated its modelling to the cheaper power, which reduced the benefits of the interconnector substantially.
“While the benefits to energy consumers may be smaller....they are still substantial and the interconnector, therefore, satisfies the requirements of the process” Ms Savage said.
AAP
