TransGrid’s Lumea aims for 10GW of green power
TransGrid plans to deliver 10GW of renewable power after splitting off its commercial arm and accelerating a shift to cleaner energy and lower emissions.
NSW electricity transmission provider TransGrid plans to deliver 10 gigawatts of renewable power after splitting off its commercial arm and accelerating a shift to cleaner energy and lower emissions.
The new business, called Lumea, will build the infrastructure and electricity connections required for a flood of solar and wind in Australia as the power grid moves away from coal to a system of renewables backed by fast-start generation, including pumped hydro, gas and batteries.
Lumea will provide contracted services to help renewable operators connect to the grid through transmission lines or substations and provide commercial and industrial customers with power through its network over long-term contracts.
“Our energy system is facing a critical point. The scale of renewable energy generation to date has been substantial but we know more is required and more solutions are necessary to effect the transition to a clean energy future,” Lumea chief executive Richard Lowe said.
“Lumea is at the forefront of the transition to that future. Renewable energy is the cheapest form of electricity in the market and by accelerating that transition we’re enabling the delivery of low-emission, affordable power in greater amounts than ever before.”
About 4500 megawatts of renewable energy is being produced in NSW and Victoria with the same amount under construction. Lumea expects a further 4500MW to be developed over the next four to five years as the power system speeds up its transition, driven by cheap supplies of solar and wind.
Lumea will build, own and operate a 50MW battery at its Wallgrove substation in western Sydney, while its New England Transmission Infrastructure plan in NSW’s Hunter Valley would see 1400MW of renewables added to the grid.
The Australian Energy Market Operator has been clamping down to ensure new renewable projects do not lead to further congestion issues following rapid growth in wind and solar projects in areas not always close to existing transmission.
It sees a pressing need for major investment in transmission as the power grid moves away from a reliance on coal.
Lumea predicts strong growth for the business in light of the NSW government’s ambitious plan to attract $32bn in private investment over the next decade focused on 12GW of renewable generation and 2GW of long-duration storage.
Adding to momentum is a consortium of major domestic and international energy players that have devised a $2bn plan to fast-track Australia’s first ‘‘hydrogen valley’’ in the heart of the nation’s biggest coal province, using renewable energy to build a major export industry and secure jobs in NSW.
It would use solar and wind generation to feed a “green” hydrogen pipeline supplying manufacturing plants with zero emissions. Hydrogen and ammonia would be exported from Newcastle using existing or new port infrastructure.
TransGrid, headed by Paul Italiano, is owned by a consortium of Spark Infrastructure, Utilities Trust of Australia, Canada’s CDPQ, Tawreed Investments and pension giant Omers.
The group paid $10.3bn in 2015 to buy TransGrid as part of a major privatisation drive.