Project

Sydney Ring

PROJECT STATUS
Prospective
Sydney Ring

The Sydney Ring is a proposed high capacity 500 kV transmission network to increase supply capacity to Sydney, Wollongong, and Newcastle.

There are two components to the project: the northern option, named the Hunter Transmission Project, and a southern option. 

The Hunter Transmission Project (the northern option) will connect the Bayswater Power in the Upper Hunter to the Eraring station in the Lower Hunter.

The future southern option will connect Bannaby and Kemps Creek.

Sydney Ring also includes enabling the 850 MW Waratah Super Battery to unlock extra transmission capacity into the Sydney region. 

The completion of the two options will see a fully connected loop through Bannaby, Mt Piper, Bayswater, Eraring, and Kemps Creek.

Key Dates

Dec 2031 Expected Construction Completion

Funding contributions

In December 2022, the Federal Government confirmed that the Hunter Transmission Project and the Sydney Southern Ring would be two of the eight projects to receive funding until the combined $7.8 billion Federal and NSW funding package. 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.

PROJECT HISTORY

Jun 2022 AEMO's 2022 Integrated Systems Plan lists the project as 'actionable' and estimates the costs of the project at $0.9 billion ±50% for the northern option, and $2.25 billion ±50% for the southern option.
Dec 2022 The Federal and NSW governments announced a $7.8 billion deal to support eight critical transmission and REZ projects, including Sydney Ring - Hunter Transmission Project and Sydney Ring - Southern Sydney Ring.
Jun 2023 TransGrid releases its System Security Roadmap confirming the estimated cost of the Sydney Ring is approximately $2.5 billion, with the estimated investment cost based on AEMO’s Draft 2023 Transmission Expansion Options Report, AEMO 2022 Integrated System Plan and Transgrid estimates. It also identifies that the expected delivery date for the northern section is 2028 and the southern section is 2031.
Aug 2023 TransGrid releases its Transmission Annual Planning Report 2023 confirming delivery dates of 2028 for the northern section and 2031 for the southern section.
Dec 2023 AEMO's draft 2024 ISP listed the northern Hunter Transmission Project and investigations on the southern option as 'actionable'. An updated construction completion timeline identifies the Hunter Transmission Project is expected to be completed by December 2027.
Estimated Total Cost
(2023)
Sector
Energy
Procurement approach
Other |
Location
New South Wales |
Resources
Major Contract

Waratah Super Battery

PROJECT STATUS
Under Delivery
Waratah Super Battery

The Waratah Super Battery Energy is a 850 megawatt (MW) / 1,680 megawatt-hour (MWh) battery to be located on the site of the former Munmorah Power Station on the Central Coast, NSW. The project forms part of the Hunter Transmission Project, which is the northern component of the Sydney Ring project. The aim of the project is to increase power transfer capacity on transmission lines that connect generation in the northern and southern regions of NSW to the Sydney, Newcastle and Wollongong region.  

The battery will operate as part of a broader System Integrity Protection Scheme (SIPS) which is designed to monitor transmission lines and enable the battery to act as a 'shock absorber' in the event of any sudden fault on the transmission system. 

The scope of the works includes: 

  • an 800 MW / 1,680 MWh SIPS battery service (to be developed by Akaysha Energy)
  • SIPS control and communications systems (to be developed and operated by Transgrid)
  • Augmentations to existing transmission network lines and substation equipment, including Yass – Marulan 330 kV, Collector WF – Marulan 330 kV, and Bannaby – Sydney West 330 kV lines (to be undertaken by Transgrid), and
  • Paired generation services (to be undertaken by a portfolio of generators).

Development of the project will be supported by an initial invesment by the NSW Government under its Transmission Acceleration Facility, and form part of the government's Electricity Infrastructure Roadmap.

The battery will be located in the Hunter-Center Coast Renewable Energy Zone. 

Key Dates

Feb 2022 Project Announcement
Apr 2022 EOIs Open
May 2022 EOIs Close
May 2023 Construction Commencement
Aug 2025 Expected Construction Completion

Financing

;
Equity Finance: BlackRock

In June 2023 BlackRock Private Markets confirmed that it has raised more than $500 million from Australian and global institutional and sovereign co-investors, including NGS Super. This includes $100 million from the Clean Energy Finance Corporation. 

Procurement

Procuring Agency: Energy Corporation of NSW (EnergyCo)
Successful Tenderer: Akaysha Energy (subsidiary of BlackRock) - project development Transgrid - network operator
Procurement note:

Akaysha Energy has been selected to construct and operate a battery that is capable of providing a guaranteed continuous active power capacity of at least 700 MW, and a guaranteed useable energy storage capacity of at least 1400 MWh.

Transgrid, as the Network Operator for the WSB project, is required under the Ministerial direction to enter into a contractual arrangement to procure the SIPS battery service from Akaysha Energy.

Related contracts:
Owner's Engineer
Successful Tenderer - WSP

PROJECT HISTORY

Feb 2022 The NSW Government announced the project following an announcement by Origin Energy that it would bring forward closure of its 2,880 MW, coal-fired Eraring Power Station at Lake Macquarie in NSW.
Apr 2022 EnergyCo opened Expression of Interest (EOIs) for the project, closing on 2 May.
Sep 2022 The NSW Minister for Planning declared the project as Critical State Significant Infrastructure under the Environment Planning & Assessment Act 1979 (NSW).
Sep 2022 The Energy Corporation of NSW (EnergyCo) released the scoping report for the proposed project.
Oct 2022 Transgrid was awarded a Network Operator contract for the Waratah Super Battery, while Akaysha Energy was also awarded the contract to construct the project.
Oct 2022 The Secretary's Environmental Assessment Requirements (SEARs) were released for the project.
Nov 2022 The NSW Department of Planning and Environment placed EnergyCo's Environmental Impact Statement (EIS) for the Waratah Super Battery Energy Storage System on public exhibition, closing 8 December.
Feb 2023 The NSW Department of Planning and Environment granted final planning approvals for the project.
May 2023 Construction commenced on the project, due for completion in 2025.
Jun 2023 WSP was awarded the Owner's Engineer advisory contract for the project.
Jun 2023 BlackRock confirmed it had raised over $500 million in investment for the project, including from NGS Super and $100 million from the CEFC.
Apr 2024 The Australian Energy Market Operator has granted Generator Performance Standard approval for the project. It sets the performance standards that generators and storage projects must meet to ensure stability and reliability of the electrical grid.
Major Contract

Sydney Southern Ring

PROJECT STATUS
Prospective
Sydney Southern Ring

Transgrid's Sydney Southern Ring project is a 114-kilometre, 500-kilovolt (kV) transmission line project from Bannaby to South Creek which will form the southern element of the Sydney Ring. It is intended to support the growing demand centres of Sydney, Newcastle, and Wollongong. 

The scope of the project includes works to: 

  • establish a new substation in the locality of South Creek with 2 x 500/330/33 kV, 1,500 MVA transformers
  • connect the new substation in the locality of South Creek into Eraring – Kemps Creek 500 kV lines and Bayswater – Sydney West and Regentville – Sydney West 330 kV lines
  • construct new 500 kV double-circuit lines from Bannaby to the new substation in the locality of South Creek
  • rebuild the section of existing Bannaby – Sydney West 330 kV line from locality of South Creek to Sydney West to double-circuit line
  • augment the existing Bannaby and Sydney West substations, and
  • install line reactors on 500 kV transmission lines between Bannaby and locality of South Creek.

 

Funding contributions

In December 2022, the Federal and NSW Governments committed $7.8 billion to progress eight critical transmission and renewable energy zone projects in NSW, including the Sydney Southern Ring project. 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.

Procurement

Procuring Agency: Transgrid

PROJECT HISTORY

Jun 2022 2022 Integrated System Plan identifies Sydney Southern Ring as an actionable NSW project rather than an actionable ISP project, to progress progress under the Electricity Infrastructure Investment Act 2020 (NSW) rather than the ISP framework.
Dec 2022 A joint $7.8 billion Federal and NSW Government investment is announced for eight projects including the Sydney Southern Ring.
Jun 2023 Transgrid submitted ISP Preparatory Activities – Reinforcing Sydney, Newcastle and Wollongong Supply (Southern Ring) which discards a Kemps Creek substation in favour of a new South Creek substation and confirms project estimate as $1.55 billion.
Estimated Total Cost
(2023)
Sector
Energy
Procurement approach
Traditional Procurement |
Location
New South Wales |
Resources
Major Contract

Hunter Transmission Project

PROJECT STATUS
Announced
Hunter Transmission Project

The Hunter Transmission project is the 110-kilometre northern section of the Sydney Ring. It involves building a new above-ground 500 kilovolt (kV) transmission line between Bayswater and Eraring in the Hunter region to connect the State’s existing 500 kV transmission lines.

The HTP will close the northern loop between existing transmission lines: 

  • two 500 kV transmission lines in the east, which connect the power stations on the Central Coast (Eraring and Vales Point) via Eraring to the Kemps Creek substation in Western Sydney, and 
  • two 500 kV transmission lines in the west, which connect Bayswater Power Station in the Upper Hunter to Mt Piper Power Station near Lithgow, and Bannaby substation in the Southern Tablelands.

The Hunter Transmission Project's preliminary corridor is divided into three sections: 

  • HTP North – Bayswater to Broke. Most of the northern section of the preliminary corridor runs through the Hunter Valley Operations Mining Complex, industrial land and Department of Defence land. 
  • HTP Central – Pokolbin to Corrabare. Much of the central section of the preliminary corridor runs through the Pokolbin and Corrabare State forests.
  • HTP South – Olney to Eraring. The southern section of the preliminary corridor runs mostly through the Olney State Forest and includes a substation in the forest.

Design and construction of this project will be procured via a competitive, open market tender process.

Key Dates

Dec 2022 Project Announcement
Dec 2028 Expected Construction Completion

Funding contributions

In December 2022, the Federal Government confirmed that the Hunter Transmission Project would be one of eight projects to receive funding until the combined $7.8 billion Federal and NSW funding package. 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.

Procurement

Procuring Agency: EnergyCo

PROJECT HISTORY

Jun 2022 AEMO's 2022 Integrated Systems Plan lists the project as 'actionable' and estimates the costs of the project at $0.9 billion ±50%.
Jul 2022 The NSW Minister for Planning declared the project as Critical State Significant Infrastructure via the Environmental Planning and Assessment Amendment (Hunter Transmission Project) Order 2022.
Dec 2022 The Federal and NSW Governments announced a $7.8 billion deal to support eight critical transmission and REZ projects, including Sydney Ring - Hunter Transmission Project.
Jun 2023 Transgrid released its System Security Roadmap confirming that the expected delivery date for the project is 2028. Transgrid also confirmed the project was declared Critical State Significant Infrastructure (CSSI) and will progress as a Priority Transmission Infrastructure Project (PTIP) under the Electricity Infrastructure Investment Act 2020 (NSW). The Southern Sydney Ring network option may subsequently proceed, through the NSW, ISP or RIT‑T framework.
Aug 2023 Transgrid released its Transmission Annual Planning Report 2023, indicating the length of the project is 110 kilometres.
Nov 2023 The project's overview document is released, updating the expected length of the project to 115 km.
Dec 2023 AEMO's draft 2024 ISP lists the project as 'actionable'. An updated construction completion timeline identifies the Hunter Transmission Project is expected to be completed by December 2027.
Feb 2024 The NSW Government issued a Request for Tender (RFT) for project control services for the Hunter Transmission Project, closing on 18 March 2024. The services would include scheduling, cost advisory, and project controls management and integration.
May 2024 EnergyCo released a revised corridor for the HTP following public consultation. The revised corridor reduced the number of private landholders affected by the project from 78 to 25.
Jun 2024 EnergyCo commenced a pre-registration process for the design and construction of the project, closing on 7 June.
Jun 2024 The 2024 Integrated System Plan provided an updated cost and timeline for the project. The project expected to be completed by December 2028, one year later than the draft 2024 ISP, and the total estimated cost increasing to $1.1 billion (+/- 50 per cent) from $926 million in the draft ISP.