Out-Law / Your Daily Need-To-Know

Australian regulator approves 900km interconnector for renewables

Out-Law News | 17 Jun 2021 | 1:45 am |

The Australian Energy Regulator (AER) has approved costs for the EnergyConnect transmission line project connecting New South Wales (NSW) and South Australia.

According to AER chair Clare Savage, the total coast for the project is $2.28 billion, 4% down from the $2.36bn initially proposed by the New South Wales grid operator TransGrid and its south Australian section constructor ElectraNet.

TransGrid had earlier announced it had made a final decision to build its section of the 900 kilometre project, investing A$1.834 billion ($1.41bn). ElectraNet, which will construct the South Australian section, said it will consider its final investment decision in the coming days.

TransGrid’s final investment decision has been supported by a A$295 million hybrid debt instrument issued by the Australian government’s Clean Energy Finance Corporation (CEFC).

The EnergyConnect project is a 900km electricity transmission line which is expected to lower power price for homes and businesses, and to deliver $4 billion in economic benefits to NSW.

The construction work is set to start by middle of this year and complete by mid-2023.