Transgrid has welcomed the New South Wales Government’s planning approval for the HumeLink transmission project, which has been plagued by cost blowouts.
Transgrid CEO Brett Redman said, “We welcome the determination by the NSW Minister for Planning and Public Spaces. This a significant milestone and we now await the Commonwealth environmental approval before Transgrid’s Board considers its Final Investment Decision (FID).
Related article: GenusPlus AND Acciona JV win HumeLink East contract
“HumeLink represents a key component of the National Electricity Market (NEM) which supplies energy to millions of Australians. 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.
“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.
The Australian Energy Regulator (AER) approved funding of $4.57 billion for the HumeLink project in August 2024—more than three times the initial estimate of $1.3 billion.
HumeLink will now be assessed by the Commonwealth Government’s Department of Climate Change, Energy, the Environment and Water, with a determination expected next month.
Related article: Regulator approves reduced costs for HumeLink Stage 2
Late last year, Transgrid awarded $2.9 billion in construction contracts to Acciona and GenusPlus Group Ltd (JV) for the HumeLink East package and to UGL CPB Contractors (JV) for the HumeLink West package.
Pending federal approval and final investment decision, construction work is expected to commence in early 2025.
