SA to NSW High Capacity Interconnector
Preferred bidder announced
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.
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.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
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.
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:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
The new South Australia to New South Wales high capacity electricity interconnector project is a proposed new transmission link between South Australia and the National Electricity Market (NEM).
South Australia's transmission network service provider, ElectraNet conducted a project assessment in for the proposed interconnector in July 2018. The preferred option from the project assessment would see construction of a 330 kV interconnector running from Robertstown in South Australia to Wagga Wagga in New South Wales, via Buronga.
The project would aim to improve security of electricity supply in South Australia, as well as enabling greater integration of renewables in the NEM.
The cost of the preferred project option is approximately $1.5 billion across both states. Assuming it receives all the necessary approvals, the project could be delivered between 2022 and 2024.
The Australian Energy Market Operator (AEMO) recommended the establishment of new transfer capacity between South Australia and New South Wales in its 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 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.
The NSW and SA state governments have signed an MOU establishing a framework for co-operation to deliver the project.
In 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.
In June 2019, the SA Government granted the Interconnector Major Project Status, recognising the economic significance of the interconnector to South Australia.
Last reviewed: 28/06/2019