NSW signs off on contested HumeLink transmission link, with “strict conditions”

Transgrid’s massive HumeLink transmission line, which will boost the connection to the Snowy Hydro 2.0 pumped hydro project in southern New South Wales, has been cleared for development by the state Labor government.

The NSW government approval, announced on Thursday, means that a federal green tick remains the only regulatory hurdle left standing in the way of the now $4.8 billion project, which will connect Wagga Wagga, Bannaby and Maragle.

NSW planning minister Paul Scully says the 365km “new spine” is one of the biggest transmission projects to be approved in the state’s history and will provide an additional 2,200 megawatts of on-demand energy, while also unlocking the full benefits of Snowy 2.0.

But with size, comes controversy, including around the huge costs for HumeLink, which have blown out considerably from initial estimates of $1.3 billion.

In August, the Australian Energy Regulator signed off on a $3,964.8 million bill for Stage 2 of HumeLink, adding to the the $608.6 million previously approved for the first initial stages of the project.

AER chair Clare Savage said at the time that the AER had undertaken a rigorous assessment of proposed costs to the project to ensure consumers paid no more than necessary for its delivery. Costs passed on to NSW households are expected to amount to $21 a year over the coming three years.

The visual and environmental impact of the new transmission line and its path through regional communities have also been the subject of much opposition, alongside problems securing landowner approval along the proposed route.

Scully says the Department of Planning, Housing and Infrastructure (DPHI) carefully assessed the proposal, to make sure that Transgrid had responded to the range of issues raised in public submissions.

The minister says his approval of HumeLink is subject to “strict conditions,” including to limit impacts on biodiversity, minimise clearing, and to run the majority of the new transmission lines within existing transmission line corridors.

He says that HumeLink will create 1,600 construction jobs and is expected to drive $6.3 billion of direct and indirect investment into the regional economy.

“This Critical State Significant Infrastructure project will enable more renewable energy generation to enter the market supporting NSW’s emissions reduction targets,” Scully said.

“HumeLink is an important investment in NSW’s energy capability, increasing the amount of renewable energy that can be delivered to consumers and helping the state move towards a net zero future.

“Together we’re building an energy system which will help keep the lights on, put downward pressure on energy bills and reduce emissions while creating jobs.”

Transgrid CEO Brett Redman says the network company’s board will now await Commonwealth environmental approval before considering a final investment decision (FID) on the HumeLink.

“By reinforcing the southern grid, the project will connect at Wagga Wagga with EnergyConnect and form the energy superhighway needed to help bring cheaper, cleaner renewable energy online from south-west NSW,” Redman said.

“This reshaping of the NEM will benefit electricity consumers by providing a secure, sustainable and more affordable supply, which is expected to put downward pressure on bills in the long term.”