Project EnergyConnect




PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
Project EnergyConnect
STATUS

Prospective pipeline

Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.

Credibly proposed

The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.   

Announced

The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.

Under procurement

The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).

Preferred bidder announced

A preferred bidder has been selected and is in exclusive negotiations.

Recently closed

Projects that have progressed to contractual close remain on ANZIP for 12 months.

ANZIP is focused only on major infrastructure activity, above the following thresholds:

Australia

Construction projects: > AUD$300m

Investable greenfield & brownfield: > AUD$100m

New Zealand

All greenfield and brownfield projects and divestments: > NZD $100 million


STATUS: Under procurement
VALUE: $1.5bn AUD
SECTOR: Energy
JURISDICTION: SA, NSW
PROCUREMENT APPROACH: Unknown
TYPE: Greenfield

Project EnergyConnect is a proposed high voltage transmission line connection between the South Australian and New South Wales power grids.


The SA-NSW interconnector involves the construction of a new 330 kV, above-ground transmission line between Robertstown in South Australia and Wagga Wagga in New South Wales. It also includes a 220 kV spur from Buronger in NSW to Red Cliffs in north-west Victoria. The transmission line will be approximately 900 kilometres in length.

 


 

Key Dates

Pending contingent project application assessment outcome,
2020: Detailed engineering design
2020: Environmental planning approvals and land access process
2021: Anticipated construction commencement
2023: Anticipated completion

 


 

Funding

The $1.5 billion project will be delivered by ElectraNet (SA) and TransGrid (NSW), who will each fund the transmission infrastructure on their respective sides of the border.

The project will ultimately be funded by electricity consumers. ElectraNet and TransGrid will seek approval from the AER to increase their allowed revenue in order to cover the capital expenditure for the project.

The South Australian Government first announced its support for the interconnector project in a pre-election energy policy statement released in October 2017. The policy statement committed a $200 million fund for the development of the project. In August 2018, the South Australian Government announced further funding support for the project, with a $14 million package to accelerate early works on construction.

 


 

Procurement

Procurement will be undertaken by ElectraNet in South Australia and TransGrid in New South Wales.

In January 2020, TransGrid announced a shortlist for the Design and Construction of the NSW section:

  • CPB and UGL engineering
  • Elecnor Australia and Seymour White Constructions, and
  • Quanta Power Australia.

 

The TransGrid opened the tender for shortlisted bidders in February 2020.

 


 

Project History

February 2020: TransGrid opened tenders for shortlisted bidders for design and construction of the NSW section of the project.

January 2020: TransGrid announced a shortlist of three bidders for the design and construction of the NSW section to be built from the South Australian border to Wagga Wagga.

January 2020: The Australian Energy Regulator (AER) approved ElectraNet’s Regulatory Investment Test for Transmission (RIT-T) application for the SA-NSW interconnector.

November 2019: The NSW Department of Planning, Industry and Environment received a request to prepare the Secretary’s Environmental Assessment Requirements (SEARs) for the project from SA Border to Buronga. The SEARs was issued on 5 December 2019, meaning the project's Environmental Impact Statement (EIS) will now be prepared.

August 2019: The NSW Government declared the project as Critical State Significant Infrastructure. As a result, TransGrid will now prepare an Environmental Impact Statement for the project.

June 2019: The SA Government granted the Interconnector Major Project Status, recognising the economic significance of the interconnector to South Australia.

February 2019: The Project Assessment Conclusions report was published, which forms part of the Regulatory Investment Test for Transmission (RIT-T). The Australian Energy Regulator (AER) has commenced the formal process to consider ElectraNet’s request to determine whether the interconnector satisfies the RIT-T cost-benefit analysis.

August 2018: The South Australian Government announced further funding support for the project, with a $14 million package to accelerate early works on construction. The NSW and SA state governments signed a MOU establishing a framework for co-operation to deliver the project.

July 2018: South Australia’s transmission network service provider, ElectraNet conducted a project assessment for the proposed interconnector. The preferred route between Robertstown, SA and Wagga Wagga, NSW was identified.

July 2018: The Australian Energy Market Operator (AEMO) recommended the establishment of new transfer capacity between South Australia and New South Wales in its 2018 Integrated System Plan (ISP). The ISP provides long-term transmission system planning for the NEM and lists the new interconnector as a Group 2 priority to be implemented by the mid-2020s. The updated Draft 2020 ISP also identifies the new interconnector as a priority project needed to address cost, security and reliability issues

October 2017: The South Australian Government first announced its support for the interconnector project in a pre-election energy policy statement.

 



Last reviewed: 21/02/2020

Presented by

Government sponsors

treasury-website-logobw

Supporting agencies

 
nzte-logo_web

 

 

doird_strip_web_trans
ia_trans