Essential new energy infrastructure that will unlock additional supply across the National Electricity Market (NEM) and provide thousands of households and businesses with cheaper energy is being supported by the Morrison Government.
The Government will invest up to $295 million through the Clean Energy Finance Corporation (CEFC) to help finance Project EnergyConnect - a new 330 kilovolt transmission line connecting South Australia to New South Wales.
Project EnergyConnect is identified in the Australian Energy Market Operator's 2020 Integrated System Plan as a priority transmission project.
Government support has helped underpin Transgrid's investment decision on the project, announced today.
This follows Commonwealth support for Project EnergyConnect through joint underwriting of key early works with South Australia as part of the recently signed State Energy and Emissions Reduction Deal.
The project will deliver an economic boost across South Australia, New South Wales and Victoria, creating up to 1,700 jobs during construction.
The project is also good news for energy consumers. In addition to keeping the lights on, households in South Australia are expected to save up to $100 a year on electricity bills, while those in New South Wales will be better off by as much as $60 a year. Businesses can also expect higher savings.
Minister for Energy and Emissions Reduction Angus Taylor welcomed Transgrid's announcement and said the Government was investing in projects that boost the flow of reliable power and keep energy affordable.
"Project EnergyConnect is yet another initiative we're backing to maintain pressure on prices and keep the lights on for Australians," Minister Taylor said.
"As record levels of renewable energy come online, we are continuing to ensure Australia's energy system remains reliable and affordable.
"Interconnector projects can help support a more reliable energy system and reduce the risk of blackouts and electricity price volatility.
"This investment is part of our strong action to stabilise the grid and get the energy generation balance right to ensure Australians can access the reliable and affordable power they need, when they need it.
"This critical transmission project will bring new generation into the NEM while shoring up the reliability and affordability of the system across state borders."
The Morrison Government has a clear plan to deliver reliable, secure and affordable power for Australians. We are backing new generation, transmission and storage projects across Australia to balance and complement record levels of renewables entering the energy system. This includes:
- Delivering a 2,000 MW pumped hydro expansion to Snowy Hydro scheme;
- Supporting all major priority transmission projects identified in AEMO's Integrated System Plan;
- Establishing the Underwriting New Generation Investments program to support new firm generation capacity and increased competition;
- Delivering a new 660 MW open cycle gas turbine at Kurri Kurri in the Hunter Valley through a $600 million equity commitment to Snowy Hydro; and
- Establishing a $1 billion Grid Reliability fund to be administered by the Clean Energy Finance Corporation.
