Transgrid welcomes landmark transmission investment in NSW

CEO Brett Redman said: “Today’s announcement of a landmark $7.8 billion package by the Commonwealth and NSW governments reinforces confidence in the nation’s energy transition and the accelerated construction required to deliver more reliable, secure and affordable energy to consumers.

“Transgrid is building the energy superhighway that millions of Australians will rely on and this commitment by government provides the certainty needed to fast track delivery of up to $20 billion worth of private sector investment in transmission in the coming decade.”

Mr Redman welcomed funding for Transgrid projects HumeLink and VNI West as well as projects in planning Sydney Ring – Hunter Transmission Project and Sydney Ring – Southern Sydney Ring which are crucial to connect new renewables to the grid, lowering electricity prices for consumers and reducing the nation’s carbon emissions.

“It will support our program of works approach to bundle key transmission projects into a single continuous construction program.

“We’re facing increasingly tough global competition for critical resources and this funding enables considerable efficiencies to be gained through combined procurement of materials and secure pipeline opportunities for workers across multiple projects,” he said.

Bundling EnergyConnect, VNI West, and HumeLink together will benefit consumers by:

• Capex savings of up to $500 million, achieved from savings in procurement, labour and avoided inflation costs
• Allowing low-cost renewable generation to connect to the grid to deliver cheaper energy to consumers
• Placing downward pressure on wholesale energy prices which will be passed through to energy consumers.

HumeLink and VNI West will deliver more than a billion dollars in benefits that significantly outweigh their costs.

The package is funded by $4.7 billion from the Commonwealth’s Rewiring the Nation plan and $3.1 billion from the NSW Transmission Acceleration Facility for eight critical transmission and renewable energy zone projects.

“This is the best example of the Team Australia approach to securing cheap, reliable, clean energy for Australians as efficiently as possible,” Mr Redman said.

“The sooner we build these transmission projects the sooner we can put downward pressure on the cost-of-living pressures every day Australians are facing.”

A June 2022 report by Nexa Advisory with Endgame Economics estimated a one-year delay in transmission investment would increase a residential consumer’s bill by an average of $327 in total over the period of 2026-40. A four-year delay would cost average residential customers an extra $1,791 over that same period.

“Building now to facilitate the connection of new renewable generation and storage is the best path forward for consumers, who will reap the rewards of a rapid acceleration for generations to come,” he said.

Transgrid media enquiries:
Kate Davies 0438 437 466
kate.davies@transgrid.com.au