The Australia government has made its first landmark transmission agreements under its Rewiring the Nation initiative, VNI West (KerangLink) between Victoria and NSW, and Marinus Link between Tasmania and Victoria.
These projects will unlock renewables and put downward pressure on energy prices.
Low-cost finance from Rewiring the Nation will enable both projects to deliver new transmission lines that will boost economic activity in Victoria and Tasmania and support thousands of jobs.
Energy Networks Australia chief executive Andrew Dillon welcomed the agreements: “Australia is working towards a net-zero energy grid, but is hampered by a lack of transmission infrastructure.
“These new links are key steps towards a 21st century renewable energy grid.
“Network investment is critical to enable the most affordable transition to a net zero energy system.
“Every dollar spent on transmission will return more than twice this in benefits to customers.
“It will enable cheap, renewable electricity to flow to where it is needed, making firming easier and lowering wholesale prices.
“Networks need to install more than 10,000 kilometres of new transmission lines to ensure we can connect the renewable generation our system will need to reach net zero by 2050.
“While private sector investors are prepared to underpin much of this investment, leadership from government will encourage confidence and investment from the private sector.”
Dillon said a recent market-sounding report commissioned by the Clean Energy Council and Energy Networks Australia had already highlighted the critical need for governments to work to solve transmission challenges to enable Australia’s energy transition.
He continued: “The stakeholder feedback from the report emphasised the crucial role that Rewiring the Nation could play in funding significant transmission projects like Marinus Link and KerangLink.
“It is pleasing to see the federal government has prioritised these projects and acted swiftly to get them moving.”
The Climate Council also welcomed the state and territory partnership towards building thousands of kilometres of new energy transmission lines.
Climate Council chief executive Amanda Mckenzie said this kind of proactive, coordinated action across levels of government was exactly what was required to build a clean grid quickly as possible.
She said: “This new infrastructure will help rid our electricity network of coal by unlocking new renewable energy projects.
“That’s not just a win for our climate, it’s also a win for regional communities who have worked to power our nation for generations.
“Australia is well on its way to being powered by renewable energy, the only question is how quickly can we get there.
“By 2030 we need to roll out transmission lines approximately 24 times the length of what we have now.
“Genuine community consultation and strong collaboration between governments is crucial to this.
“This announcement is the kind of rapid, practical action we need now to unlock Australia’s clean energy future.
“It stands in stark contrast with news that the federal government is also forging ahead with $1.5 billion in Morrison-era funding for the Middle Arm Petrochemicals Hub in Darwin Harbour.
“The global scientific consensus is clear that to protect communities from ever worsening climate impacts, countries cannot approve new gas and coal projects.
“That’s why we need clean energy collaboration like [the transmission] announcement along with an end to public subsidies which prop up polluting fossil fuels.”