Labor challenges Peter Dutton on transmission projects he’d cut

Chris Bowen demands Peter Dutton reveal which ‘vital’ transmission projects he’d scrap as Tanya Plibersek approves the $4.8bn HumeLink.

Chris Bowen says the Coalition’s nuclear plan pretends transmission lines aren’t required as MYEFO commits $1.2bn in extra funding for transmission and distribution projects.

Climate Change and Energy Minister Chris Bowen has demanded Peter Dutton reveal which “vital” transmission projects he’d scrap under his “reckless” nuclear plan as Labor doubles down on ­renewables and ­approves a controversial $4.8bn, 365km transmission project in NSW connecting Snowy 2.0 to the grid.

It comes as $1.2bn in additional funding for transmission and distribution projects was unveiled in the mid-year budget update on Wednesday, alongside $500m to expand a scheme improving ­energy efficiency for vulnerable households and $728.1m to boost the Australian Energy Market Operator’s cyber security system.

The Greens won the social housing energy efficiency concession in negotiations over the government’s housing package – labelling it “life-changing upgrades” to 50,000 social homes – but The Australian understands Labor had always planned to ­extend the program.

Environment Minister Tanya Plibersek on Thursday will announce the approval of Transgrid’s HumeLink – a 500 kilovolt high-voltage infrastructure project between Wagga Wagga, Bannaby and Maragle – one month after the NSW government gave it the green light, making it one of the largest transmission projects in the state’s history. The project, which is listed as critical infrastructure, has been fiercely contested by some landholders.

“This approval decision marks another important milestone in the government’s plan to make Australia a renewable energy superpower,” Ms Plibersek said.

“We know projects like HumeLink are vital to boosting renewables capacity and putting downward pressure on prices, but they are also great for local jobs and economies. This project will generate 1600 jobs in construction and over 60 ongoing jobs.”

An extra $1.2bn will also be pumped into the Rewiring the ­Nation program to underwrite support for transmission and distribution projects “critical to Australia’s energy transformation”, according to the government’s mid-year economic and fiscal outlook. Mr Bowen said nuclear was the most expensive form of energy but the Coalition’s “reckless ­nuclear scheme” was trying to hide those costs by “pretending” the country didn’t need transmission lines to get power into homes and businesses.

Frontier Economics modelling released by the Opposition Leader last week shows a nuclear alternative to AEMO’s energy road map to net zero by 2050 is $22bn ­cheaper in transmission costs under a step-change scenario and $18bn cheaper under a progressive scenario.

“Peter Dutton must tell Australians what vital projects which are modernising our ageing grid and getting cheaper renewable power into homes he will cancel. The ­Albanese government is working with states and territories to ­deliver a modern, affordable and secure energy grid for a growing economy,” Mr Bowen said.

Opposition climate change and energy spokesman Ted O’Brien said every extra dollar Labor spent on transmission lines that could otherwise be avoided meant ­higher energy bills for families, small businesses and industry. “$20bn for transmission here, ­another $1.2bn there. Labor is treating Australians like the boiling frog, increasing costs over time only to lock the nation into a ­future of energy poverty,” he said.

“This is just the beginning. Labor’s agenda will require tens of billions of dollars more over time to overbuild poles and wires for its renewables-only grid.”

AEMO’s $122bn blueprint to transform the power grid details the extent of transmission required, but the Frontier Economics report argues nuclear generators can be co-located on existing “strong” transmission lines, reducing the need to build such an extensive network across rural and regional Australian.

“This can mitigate the loss of amenity to Australia’s rural and regional communities that are largely bearing the costs of the energy transition,” the report states.

“Aside from requiring less generation capacity to be installed to meet AEMO’s forecast for rapid and continuous growth in demand, less transmission capacity will be needed as fewer generators are required. To achieve these cost savings it will be important to plan for a system that includes nuclear as soon as possible.” The government has hit back at claims from Mr Dutton that his nuclear plan will see prices 44 per cent cheaper than under Labor over time, pointing to the Coalition’s own modelling that says it doesn’t present any results for prices.