Contractors shortlisted for new transmission link between biggest coal plants and batteries in NSW

Transgrid has been chosen to run the new Hunter Valley transmission line, which will close a gap in the grid between coal-turned-big-battery hubs at Bayswater and Eraring, with a handful of aspiring contractors shortlisted to help built the project.

The Hunter Transmission Project is an above-ground 500 kilovolt (kV) transmission line running for 100km between Bayswater, where AGL is to at least partially replace its Liddell coal power station with a 500 megawatt (MW), two hour battery, and Olney, near Origin Energy’s still-operating Eraring coal plant.

Once completed, the component of the so-called $2.5 billion Sydney Ring project will transport electricity from New South Wales’ (NSW) major renewable energy zones to Sydney and the industrial hubs of Newcastle and Wollongong.

It’s hoped the new power lines will reinforce the grid around the industrialised coastal regions once the east coast coal fired plants finally power down for the last time.

Construction isn’t expected to start until 2026 and the project won’t be finished until at least 2028 – a year after the newly delayed closure date of Origin Energy’s Eraring coal fired power station, the biggest in the country. Origin is also building the country’s biggest battery project at the same site.

The Sydney South section will also link the flows from Project EnergyConnect, HumeLink and VNI West via 500 kV transmission lines from Bannaby into the Sydney western suburbs connecting to the ‘inner’ 500 kV system.

“The Hunter Transmission Project is critical and must be delivered to unlock reliable energy supply to power the state,” said EnergyCo CEO Hannah McCaughey in a statement.

“By creating a new 500 kV transmission line and connecting it to existing infrastructure, the HTP will form the backbone of NSW’s future electricity grid. This will enable the Hunter region to play a key role in our renewable energy future while driving economic growth.”

Transgrid and EnergyCo have signed a commitment deed to deliver, operate and maintain the Hunter transmission line, but the appointment is not yet locked in as the final contract is yet to be signed. 

EnergyCo, NSW’s state-owned company for delivering on its renewable energy plans, has shortlisted seven contractors for two key work packages.

Downer Utilities as well as joint ventures by Acciona-Genus, Gamuda Seymour Whyte, and UGL-CPB Contractors set to handle the transmission build.

The Acciona Genus JV, UGL Engineering, and Consolidated Power Projects Australia will be involved with upgrading two substations and building another two.

“The Hunter has been at the heart of our energy industry for decades and we look forward to continuing to work with the local community as the region continues to play an important role in the state’s clean energy transition,” said Transgrid CEO Brett Redman in a statement.

“We welcome EnergyCo’s vote of confidence in Transgrid as it plans this critical transmission link, which will help accelerate the clean energy transition and provide access to cleaner and cheaper energy to households and businesses.”