This week, Project EnergyConnect (PEC), Australia’s largest interconnector was given the green light, after transmission networks ElectraNet and TransGrid both pledged investments to build the 900km infrastructure.
PEC will be the longest power transmission line in the country, connecting electricity between South Australia and New South Wales, as well as a connection to North-West Victoria.
So, what will it actually do?
PEC has two core purposes: to support Australia’s transition to lower-carbon emissions, as well as increase competition (and therefore reduce costs) in the wholesale electricity market by connecting more low-cost generation to the national electricity grid.
Let’s break that all down a bit more:
What is an interconnector?
Electricity interconnectors are high-voltage cables which allow power to flow between regions, by providing access to a larger number of electricity generators.
As renewable energy is rapidly affecting the infrastructure of the electrical industry, interconnectors are growing in importance due to their efficient use of renewable sources. We already have interconnectors in Australia, including the connections between NSW-Queensland, Victoria-Tasmania and Victoria-South Australia, however, PEC will be the largest yet.
The Australian Energy Market Operator (AEMO) has projected that PEC will provide as much as 1,800MW of renewable energy generation, split between the three states across Renewable Energy Zones:
SA: 800MW
NSW: 400MW
VIC: 600MW
What does it mean for Australians?
Increased Economic Activity
Project construction will create over 200 jobs in SA, and 1500 jobs in NSW.
Regions hosting the interconnector infrastructure will see real income increases - $163 million in SA, and $209 million in NSW.
Lower Power Prices
$100 reduction to the average SA household electrical bill
$58-$64 reduction to the average NSW household electrical bill
Businesses can also expect to benefit from the PEC, with higher savings relative to their energy consumption
Improved Energy Security + Accelerated Connection to Renewable Energy
Increases reliability and confidence in electricity supplies
Enables a greater mix of renewable energy generators to connect into the network
If all goes to plan, Project EnergyConnect is set to start construction at the end of 2021.
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