Transgrid has announced the completion of Australia’s largest transmission project, EnergyConnect, following significant delays and budget blowouts.
EnergyConnect facilitates renewable energy sharing between New South Wales, Victoria, and South Australia, providing access to lower-cost wholesale energy as NSW’s coal-fired power stations progressively retire.
Transgrid and its delivery partner Elecnor Australia completed the 700km NSW section of the interconnector, which comprises more than 1,500 towers and over 10,000km of high-voltage conductor.
Related article: Transgrid seeks to recoup additional costs for EnergyConnect
Stage 2 of EnergyConnect—the 540km line between Buronga and Wagga Wagga—is being energised following detailed commissioning checks.
Later this year, the Australian Energy Market Operator (AEMO) will begin its inter-network testing on stage 2, to confirm the reliability and performance of the new infrastructure. The first stage of the project, a 160km line from the South Australian border to Buronga and into Victoria, became operational last year.
Construction of the South Australian component of EnergyConnect was completed on time and within budget by Electranet. Transgrid’s portion of the project, however, was plagued by delays and saw the budget increase from $2.1 billion to $3.8 billion.
In a controversial move, the company has since filed an application with the Australian Energy Regulator (AER) to recover these additional costs.
Transgrid executive general manager of major projects Gordon Taylor acknowledged EnergyConnect had faced significant challenges.
“Construction of EnergyConnect has not been easy, with the project facing a range of challenges from global supply chain impacts, labour shortages, to record inflation, flooding and the insolvency of a delivery partner,” Taylor said.
“This colossal effort has delivered a unified energy backbone to carry stable, lower-cost renewable power exactly where and when it is needed most.
“We are proud to have delivered significant benefits to regional NSW during EnergyConnect’s construction, which created 1,500 jobs, invested $300 million in supply contracts with local businesses, provided education and training opportunities, and funded community projects and partnerships.”
Transgrid Group CEO Brett Redman said EnergyConnect was key to building the modern power system needed to cater for a modern economy by 2035.
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“Energisation of EnergyConnect marks the culmination of one of the nation’s most significant transmission builds and is a defining moment in the delivery of Australia’s clean energy future,” he said.
“EnergyConnect will benefit consumers by enabling access to lower-cost sources of energy like solar and wind, also known as wholesale energy, which is the largest component of household bills. The project will also help achieve Australia’s climate change targets as we replace coal-fired power with renewable energy.”
