Government supporting delivery of critical transmission infrastructure in Southwest NSW

Joint media release with the NSW Minister for Energy and Environment the Hon Matt Kean MP

The Morrison Government has secured an agreement with New South Wales transmission provider TransGrid to improve the capacity of the electricity transmission network in South-West NSW. 

Under the agreement, the Government will provide up to $181.5 million in underwriting support to enable transmission lines being built from south of Coleambally to Wagga Wagga as part of enabling Project EnergyConnect to be constructed at a larger capacity.  

Building a single line with larger capacity will save consumers hundreds of millions of dollars by removing the need for duplicate lines for the Victoria-New South Wales West (VNI West) interconnector to be constructed. 

Importantly, in addition to these consumer savings, delivery of a single line now will also minimise further disruption to landholders in the area.  

VNI West is expected to deliver up to 1800MW of additional capacity between New South Wales and Victoria, improving reliability for Victorian consumers while also increasing competition and unlocking additional generation capacity in the system, including the reliable generation from Snowy 2.0.  

This agreement, and the Government’s commitment to VNI West, forms part of ongoing support for development of all major priority electricity transmission infrastructure in the National Electricity Market in line with the Australian Energy Market Operator’s 2020 Integrated System Plan.  

“The Government is committed to the development of an efficient and resilient transmission backbone for the electricity market,” Energy and Emissions Reduction Minister Angus Taylor said. 

“Our $181 million underwriting support for this line upgrade builds on a $250 million program, announced in the 2020-21 Budget to support key projects including VNI West, Tasmania’s Marinus Link, and Project Energy Connect, which has already been able to reach final investment decision thanks to Government support”. 

“Investments in projects like this one will help to unlock reliable electricity supply like Snowy 2.0, deliver substantial cost savings, minimise landholder impacts and help keep the lights on and prices low.” 

NSW Energy Minister Matt Kean welcomed the Morrison Government’s support to deliver this important piece of infrastructure, and said the Dinawan upgrade would turbocharge the South-West Renewable Energy Zone.  

“I want to thank the Commonwealth for getting this project and the South West REZ over the line and helping deliver reliable, affordable and clean electricity for the State,” NSW Minister Kean said.  

“The South-West Renewable Energy Zone will drive jobs and investment into regional NSW, and help to provide homes and businesses across the State with some of the cheapest, cleanest electricity anywhere in the world.” 

Media contact:

Minister Taylor's office 02 6277 7120