Australia approves reduced capex for huge NSW interconnector

The Australian Energy Regulator (AER) on Friday approved planned costs of almost AUD 4 billion (USD 2.6bn/EUR 2.39bn) for a massive transmission link project aimed to boost the interconnection of new renewable energy capacity across New South Wales.

The HumeLink project will also unlock the full capacity of the expanded Snowy Hydro pumped storage project, which will enable increased sharing of energy across the eastern states. The plant was put forward by transmission system operator (TSO) Transgrid.

AER has signed off to the second stage of HumeLink’s capital expenditure, though AUD 314.4 million less than the original AUD-4.28-billion spending proposed by Transgrid. The approved costs for Stage 2 of the HumeLink project stand at AUD 3.97 billion and add to the roughly AUD 600 million previously approved for the project’s initial phases.

HumeLink will create a 500-kV transmission line to connect Wagga Wagga, Bannaby and Maragle to provide increased access to power generation and storage across Southern and Southwest New South Wales.

The HumeLink project will be delivered by two joint venture partners, each taking a section of the route. HumeLink East will be installed by Spain’s Acciona and GenusPlus Group while UGL and CPB Contractors will deliver HumeLink West.

A final investment decision on the scheme is due to be made in the middle of this year, with construction expected to be completed in 2026.

(AUD 1.0 = USD 0.651/EUR 0.597)

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