The NSW government has given the green light for a major part of the $1.8 billion transmission network link between New South Wales and South Australia that will underpin a ramp-up of investment in new wind, solar and storage projects.
On Thursday, NSW planning minister Rob Stokes said the government had given planning approval for the first stage of Project EnergyConnect, a new 900-km transmission line linking Wagga Wagga to Robertstown in South Australia, with an additional ‘spur’ link into Victoria.
“Today’s approval is a major step towards facilitating the delivery of what would be the largest energy transmission project undertaken in Australia in more than 30 years,” Stokes said.
“The first stage will run from the Buronga substation to the Victorian border and create 600 construction jobs and inject $418 million into our regional economy.”
“To get to a low-emissions energy system our nation needs robust and reliable transmission infrastructure and that’s why we declared Energy Connect Critical State Significant Infrastructure in 2019 because it will be a fundamental part of Australia’s energy future,” Stokes added.
The EnergyConnect project will significantly expanding the amount of electricity that can be shared between the two states, as well as increasing network capacity across south west New South Wales, which has been limited and has caused constraints on wind and solar farms.
The first stage of the project will now be referred to the federal government for further environmental approvals, with construction expected to begin sometime next year.
NSW energy minister Matt Kean said the project would help unlock investment in new wind and solar projects, supporting the development of the South-West Renewable Energy Zone.
“The Electricity Infrastructure Roadmap is our plan to replace our ageing electricity infrastructure and secure NSW’s future as a clean energy superpower,” Kean said.
“This approval will help to unlock transmission constraints in southern NSW and help to open up the South-West Renewable Energy Zone (which) will drive jobs and investment into regional NSW, and help to provide our households and businesses with some of the cheapest, cleanest electricity anywhere in the world.”
The NSW side of the EnergyConnect project is being constructed by Transgrid, with ElectraNet to take responsibility for the South Australian component.
Acting Transgrid CEO Brian Salter said the project would eventually generate savings for New South Wales energy consumers of up to $180 million a year in combined energy costs and support a further $4 billion in economic activity.
“The project will be the critical missing link in the NEM, connecting more renewable generation and reinforcing connectivity between the state grids of NSW, South Australia and Victoria,” Salter said.
Environmental approvals for the western section of the EnergyConnect project follows Transgrid securing backing from the federal government to bring forward upgrades to an ‘eastern’ portion of the EnergyConnect project.
Announced on Tuesday, Transgrid will spend $180 million upgrading the network link between Wagga and Spark Infrastructure’s proposed Dinawan renewable energy hub.
This upgrade will form part of the EnergyConnect link and avoid upgrading the same part of the network when the VNI West interconnector is built between New South Wales and Victoria.
