Transmission company jacks up cost of connection queries and applications by 50 per cent

Queensland’s state owned transmission company has shocked potential developers of wind, solar and battery projects in the state by announcing a 50 per cent jump in fees from the start of the month.

The new fees, effective from May 1, range from $75,000 to $180,000 for processing a connection enquiry, and up to $555,000 for a connection application, which includes Powerlink’s costs for the negotiation of generator performance standards.

The comparative fees ranged from $50,000 to $370,000 previously. They do not include fees charged by the Australian Energy Market Operator, which are separate.

Renewable energy developers, who are already facing stricter new rules for planning approvals in the state, which has also flagged its intention to scrap the renewable energy target, were not impressed.

“I’m pretty sure the NER (National Electricity Rules) says (transmission companies) are entitled to recover their cost to assess an application, even the fact it’s a fixed charge is wrong,” said one.

“I acknowledge that assessment has become more robust, so should cost more. But now it has gotten absurd.

“Powerlink also charge the fee in full multiple times if you are connecting multiple identical generators at the identical location, which is wrong as the assessment effort of the subsequent generators is a small portion of the first one.”

Developers point out that connection fees in other states, such as with Transgrid in NSW, are not fixed, and vary according to the location and complexity of the task.

Transgrid’s enquiry fees are broadly comparable with Powerlink’s new rates, although they vary according to detail sought, and for applications it posts an hourly rate for work from various experts instead of a fixed fee.

Powerlink told Renew Economy in a statement that the fee increase reflects the increased cost of service over the last two years.

“Powerlink has a strong track record of delivering transmission connections, having connected a total of 44 renewable and storage projects representing a combined maximum output of 8,950MW,” it said in a statement.

“Powerlink reviews its connection fees every two years. The latest change reflects the increasing cost to provide effective connection services to our customers.  

“Powerlink utilises expertise from across all parts of its business to work productively with developers to find cost effective solutions to support them with their connection.”for a comment on the price increase, but did not hear back before publication.”

See also: Queensland unveils strict new wind and solar rules: No development application without council deal