The Australian Energy Regulator (AER) has released its decision for Stage 2 of Transgrid’s Contingent Project Application for the HumeLink project.
HumeLink is a proposed 500kV transmission line that will expand the transmission network in New South Wales, and is an actionable project under the Integrated System Plan. The project will reinforce the grid, and provide electricity customers with increased access to generation and storage opportunities in Southern and Southwest New South Wales.
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AER chair Clare Savage said that after a rigorous assessment the regulator had accepted project costs that were $314.4 million less than what was originally proposed by Transgrid in its application—approving $3,964.8 million in capital expenditure compared with Transgrid’s proposed $4,279.1 million (later revised to $4,173.4 million after accounting for new information).
“While HumeLink is a complex project of national significance, we recognise that it affects landholders and local communities on the transmission route and impacts electricity bills,” Savage said.
“There has been considerable stakeholder interest in this project and a diverse range of views were put forward throughout our consultation process. We valued the input of all stakeholders and sought to balance the breadth of interests and feedback in our decision-making.
“We are conscious that this decision comes at a difficult time for energy consumers, with many customers facing challenges to absorb higher electricity prices in the current economic climate.”
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The AER noted in its decision that it was critical for Transgrid to continue to engage with communities to achieve and maintain their support in delivering the HumeLink project.
Following the AER’s decision to approve reduced costs for Stage 2 of HumeLink, Transgrid will be able to deliver the remainder of the HumeLink project.
