The $2.3 billion EnergyConnect transmission project is now live. It will directly link the power grids of New South Wales, South Australia, and Victoria and allow renewable energy to flow between them.
The transmission project is not just a feat of engineering but a cornerstone in Australia’s transition towards a renewable energy future.
Spanning 900 kilometres, the interconnector paves the way for lower energy costs, increased reliability and a greener future.
What is Project EnergyConnect?
The project, a joint venture between ElectraNet in South Australia and Transgrid in NSW, is the first major transmission line to be built in the country in over 15 years.
By directly linking Robertstown in South Australia, Buronga and Wagga Wagga in NSW, and Red Cliffs in Victoria, Project EnergyConnect is designed to provide 800 MW of transfer capacity, enabling a two-way flow of electricity and addressing several challenges in the current energy landscape.
The interconnector’s primary aim is to enhance the integration of renewable energy sources while ensuring that electricity supply remains affordable and reliable as coal-fired power stations are phased out.
South Australia: Completed Infrastructure
In South Australia, ElectraNet has completed its portion of the project—a 206-kilometer section running from Robertstown to the border. This milestone was achieved late last year, marking significant progress in the project’s timeline.
New South Wales: Western Section Energised
In NSW, construction is advancing rapidly. Transgrid, in partnership with Elecnor Australia, has completed the 135-kilometer western alignment stretching from Buronga to the South Australian border. Testing has commenced on this section, with initial results enabling the safe transfer of 150 MW of electricity between the states.
The Buronga substation— one of the largest and most complex substations in the Southern Hemisphere—is taking shape. It is a vital node in this interconnected system, housing cutting-edge equipment including power transformers, a phase-shifting transformer, and synchronous condensers.
Eastern Alignment: A Work in Progress
Construction of the eastern alignment, spanning from Buronga to Wagga Wagga, is well underway. This includes the development of another world-class substation at Dinawan near Coleambally. Once completed, this section will solidify the network’s ability to manage and distribute renewable energy across the three states efficiently.
Benefits of Project EnergyConnect
1. Lower Power Prices
The interconnector is expected to deliver substantial savings for consumers. A typical residential customer in South Australia could see a $127 annual reduction in electricity bills, while businesses could save between $6,000 and $18,000 annually. The project is forecast to save customers $180 million annually in NSW.
2. Enhanced Energy Security
By linking three states, Project EnergyConnect significantly reduces the risk of energy “islanding,” a scenario where South Australia could be cut off from the National Electricity Market. The interconnector provides a safeguard, ensuring a steady electricity supply even during emergencies or failures in the existing network.
3. Boost to Renewable Energy Integration
The interconnector traverses renewable energy zones in all three states, enabling new wind and solar projects to connect to the grid. This infrastructure is pivotal in facilitating the nation’s shift toward a cleaner energy mix by increasing the proportion of renewables in the power supply.
4. Economic Growth and Job Creation
The project has already created approximately 200 jobs in South Australia and 1,500 in NSW during construction. Beyond this, it is expected to generate ongoing employment—250 jobs in South Australia and 700 in NSW—through new energy generation projects enabled by the interconnector. Additionally, it will inject $163 million and $209 million into the regional economies of South Australia and NSW, respectively.
Addressing Environmental and Community Concerns
From its inception, Project EnergyConnect has prioritised community involvement. Landholders along the proposed route were consulted early in the planning process, and these discussions will continue as construction progresses. The project team encourages feedback and keeps communities informed through regular updates.
Environmental Assessments
Extensive environmental and planning assessments were conducted to ensure the project aligned with social, cultural, and ecological considerations. These studies have helped minimise the impact of construction and operation on local ecosystems and heritage sites.
Challenges and Future Outlook
Despite its promising trajectory, Project EnergyConnect has faced some delays. A total transfer capacity of 800 MW is expected to be operational by July 2027, a year later than initially planned. The progress underscores the project’s potential to drive Australia’s energy transition.
Inter-network testing commenced in late 2024 and is a critical step towards integrating the new infrastructure into the National Electricity Market. This testing phase ensures the interconnector can safely and reliably manage power flows between the three states, marking another milestone in the project’s journey towards completion.
A Game-Changer for Australia’s Energy Future
Transgrid CEO Brett Redman described Project EnergyConnect as a “game-changer” for Australia’s energy landscape. The interconnector will enable a more resilient and efficient energy network by linking South Australia, New South Wales, and Victoria for the first time. It lays the foundation for a cleaner energy future by integrating renewable energy projects into the grid, reducing reliance on fossil fuels, and delivering economic and social benefits to regional communities.
As the country grapples with the dual challenges of decarbonisation and rising energy demand, Project EnergyConnect shows how strategic infrastructure investments can address pressing issues while preparing the nation for a sustainable future.
To learn more about the project, visit the Project EnergyConnect website.
Energy infrastructure ventures like Project EnergyConnect have a considerable impact on consumers, ranging from supply reliability to lower energy costs and environmental benefits. However, some challenges during development, like the initial investment expenses, may also trickle down. As such, the Leading Edge Energy team makes it a point to stay updated on projects like these to ensure we can assist you as you plan your business energy strategy. We can reach your goals together with the latest and most relevant information backing our analysis.
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