AER greenlights Queensland-NSW interconnector
The Australian Energy Regulator (AER) has approved the final element of the Queensland-New South Wales Interconnector (QNI) regulatory process.
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Australia: The Australian Energy Regulator (AER) has approved the final element of the Queensland-New South Wales Interconnector (QNI) regulatory process.
Among the key reasons behind the AER’s decision was its desire to support NSW businesses and households avoid energy bill increases due to the closure of Liddell.
The TransGrid project, with input from Powerlink, involves upgrades to substations, transmission towers and lines between Queensland and NSW, and is expected to provide net benefits of $170 M to electricity customers and create 150 jobs during construction.
The AER has determined that TransGrid can recover the efficient costs of upgrading the QNI from customers.
The AER estimates TransGrid will incur $218 M in capital costs to deliver the project.
AER Chair, Clare Savage, said, “Consumers will get value for money from this investment, including wholesale market cost savings.”
The AER’s decision allows TransGrid to recover an additional $28.2 M from customers over 2021-22 and 2022-23 to account for the costs of delivering this project.
This is slightly lower than the $30.3 M proposed by TransGrid, due to the AER’s assessment of the cost of overheads for the project.
Early works on the project have already commenced, with delivery and completion of inter-network testing expected by June 2022.
Source: Energy Magazine