Transgrid has placed the first orders for supplies to build the transmission lines necessary to transition Australia away from fossil fuels, following the federal Government’s agreement to underwrite a planned $385 million spend. Transmission is set to be the biggest limitation in Australia’s plan to move away from coal.
The development of transmission lines to transport new renewable energy generation across the National Electricity Market has been hindered by funding constraints and community opposition. To ease this, the federal government has set aside $20 billion to accelerate development of the transmission lines.
In the first spend from that fund, Transgrid has secured federal government underwriting worth $385 to contract supplies for three separate projects.
Transgrid has placed $150 million orders for transformers and reactors for HumeLink, a 360 km transition line to keep power supplies secure as coal exits and to deliver the full benefits of the Snowy 2.0 pumped hydro storage project for New South Wales. HumeLink is expected to cost a total of $3.3 billion.
Transgrid will also purchase steel and cables for VNI West transmission, intended to boost Victoria’s import and export capacity with NSW by over 1800 MW.
Transgrid’s 900 km Project EnergyConnect transmission line linking NSW’s and South Australi’'s energy grids is scheduled to be completed in 2024.