NSW announces review into transmission planning as it plots route to renewables and storage

The NSW Government has announced a review into the planning arrangements for transmission lines in the state, in what appears to be a move to have more say about what is built and where as it navigates its way from having the country’s biggest coal grid to one dominated by renewables and storage.

The review, which will look at the role of various bodies in the planning process, and will also encompass generation and grid security issues, will report to the government by September this year.

It will be led by Richard Owens, a former head of networks at the Australian Energy Market Commission, and the panel includes former AEMO deputy CEO David Swift, Jess Hunt, a former head of regulation at AEMO, energy consultant and former Til Renewables dircetor Geoff Swier and former AEMC analyst Claire Rozyn.

It is the second major review commissioned by the state Labor government, following the “Check up” headed by Cameron O’Reilly that led to the controversial decision to underwrite the two-year extension of the Eraring coal generator, at a potential cost of up to $450 million.

The O’Reilly Check Up recommended a review into the transmission planning arrangement, and it seems clear that NSW wants to have more say.

“The previous government’s privatisation has complicated the transformation of NSW’s energy system,” energy minister Penny Sharpe said in a statement.

“NSW needs a transmission framework that ensures the public interest is prioritised in planning this critical new infrastructure. This review will reduce duplication and ensure coordination between relevant entities.

“The Minns Labor Government’s focus is on ensuring we accelerate the right projects to build a more reliable, affordable energy system for households and businesses in NSW.”

A consolation paper authored by the panel says the review will look into the respective rules of key bodies such as EnergyCo, AEMO, AEMO Services, and Transgrid, and how they work together, along with the administrative and contractual arrangements for parties involved in renewable energy zones.

It will also look at the potential role of distribution networks in hosting generation and storage, and issues such as grid security – inertia and system strength.

“The review will recommend reforms to improve how electricity transmission is planned in NSW,” the government statement said.

“This will ensure new transmission infrastructure is planned in a way that delivers outcomes in the public interest and supports NSW policies and legislated targets. A well-coordinated transmission network is essential for a reliable and affordable energy system.

“Improving transmission planning arrangements is an opportunity to ensure that NSW maintains energy reliability, while putting downward pressure on energy prices for households and businesses.”