The cost of new transmission line projects have soared by up to 55% over the past two years, leading to a major rethink of how Australia navigates the energy transition.
The huge cost jump, particularly for overhead lines, is detailed in a key document published by the AEMO.
The document notes two issues.The first, a lack of social licence for huge transmission projects.The second, the fact that local networks could host renewables and storage at a lower cost, and with less disruption.
The document, known as the ISP, maps a path for Australia’s main grid to 82% renewables by 2030 and beyond.
But the AEMO says the soaring cost of new grid infrastructure means transmission projects previously identified as critical will need to be revisited.
Otherwise, the consumer will bear the brunt of soaring electricity bills.
Australia’s distributed electricity networks say they are the missing piece of the puzzle in the green transition, able to host vast amounts of wind, solar and storage capacity at a fraction of the cost.
The AEMO says it has begun engaging with distribution networks to incorporate important insights about their networks and the broader roles they could play in future.
Transmission project cost estimates have placed them between to 25% to 55% higher for overhead lines than in the 2023 update.