South Australia-NSW power interconnector gets OK in 2021 with ElectraNet to pay $457 million for its part

The route for the power interconnector line between Robertson in South Australia's mid north and Wagga Wagga in New South Wales.
Image courtesy ElectraNet

A $2.3 billion electricity transmission line between South Australia and New South Wales was given the OK in 2021 when the Australian Energy Regulator approved it and the two companies involved agreed to pay their shares of the 900-kilometres project. The South Australian government gave environmental approval in early 2022.

The interconnector would connect Robertstown in South Australia's mid north with Wagga Wagga in New South Wales, via Buronga. The 330 kilovolt above-grund line will have an aa 220 kilovolt spur from Buronga in New South Wales to Red Cliffs in Victoria. 

The Australian Energy Regulator approved a total budget for Project EnergyConnect of $2.28 billion — $88 million less than what the transmission companies ElectraNet (South Australia) and TransGrid (New South Wales) behind the project had proposed. ElectraNet agreed to pay a $457 million share of the work.

The interconnector was a plank for the Liberal party in its successful 2018 South Australian state election campaign. South Australian Liberal leader Steven Marshall, before the election, argued that a interconnector to New South Wales would add to the “affordable reliable baseload” the state could access “when it’s not windy or sunny” in South Australia. But website RenewEconomy pointed out that New South Wales with an ageing fleet of coal power stations, was already the state with the highest dependence on imports, even more than South Australia, and might not be able to export power to anyone.

The Australian Energy Council, representing major electricity and gas wholesalers and retailers, favoured the Liberal government’s national outlook away from a state-based renewables target. But it didn’t favour the connector to New South Wales, due to a threat of that state’s coal-power generators price undercutting South Australian generators.

South Australia’s transmission network provider ElectraNet put the case for a 330kV line between South Australia’s mid-north and Wagga Wagga, via Buronga, to lower electricity prices, improve system security and lower carbon emissions.

ElectraNet quoted independent modelling by ACIL Allen that annual residential customer bills would reduce by up to about $30 in South Australia and $20 in New South Wales with an interconnector built between the states. Net market benefits were estimated to be around $1 billion over 21 years.

South Australia already had a link to the national network via Heywood in Victoria.The 2018 South Australian Liberal government treasurer Rob Lucas also oversaw privatising of the Electricity Trust of South Australia (ETSA) assets during the previous Liberal government in 1999. To maximise the sale price of ETSA, Lucas at that time killed a plan for a new interconnector to New South Wales.