Recently, Australia’s largest power transmission project has gone live. After years of delays, contract breaches and substantial cost overruns, the scheme is hailed as a major milestone in the country’s transition to renewable energy.

Project EnergyConnect is a 900-kilometre high-voltage interconnector linking the power grids of New South Wales, South Australia and Victoria, creating a new corridor for renewable power to be shared across the three states.

Valued at 4.1 billion US dollars, this project is recognised as critical infrastructure to enhance energy security, cut wholesale electricity costs and support the phase-out of coal-fired power generation.

Power transmission operator Transgrid announced the project’s energisation, stating it will play a vital role in connecting renewable energy zones and strengthening the national electricity market.

The development comprises more than 1,500 transmission towers, multiple substations and hundreds of kilometres of new power infrastructure across remote areas of Australia.

First conceived in 2016, the project originated when ElectraNet began exploring plans for a new interstate transmission line between South Australia and New South Wales.

Earlier this year, Transgrid and its delivery partner Elecnor marked the completion of construction at the Dinawan Substation near Bundure in the Riverina region, wrapping up one of Australia’s most complex energy infrastructure projects.

The project has faced numerous setbacks along the way.

The New South Wales section was initially approved in 2021 with an estimated cost of around 2.3 billion US dollars. However, a string of difficulties — including the collapse of the original engineering, procurement and construction contract, labour shortages, supply chain disruptions, inflationary pressures and severe weather events — have pushed the total projected cost above 4 billion US dollars.

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