The proposed new high capacity electricity interconnector between South Australia and New South Wales has been awarded Major Project Status by the Federal Government.
ElectraNet’s $1.5 billion SA-NSW interconnector, which has been identified as a priority project in the Australian Energy Market Operator’s integrated system plan, will deliver cheaper electricity to consumers in both states whilst improving reliability across the network.
Minister for Energy and Mining Dan van Holst Pellekaan said modelling released on Thursday showed that small and medium businesses with significant electricity consumption will save many thousands of dollars each year when the interconnector is energised.
For instance, a suburban hotel in Adelaide with annual consumption of 798,000 KWh would save about $10,000 annually; a suburban supermarket with annual consumption of 674,000 KWh would save approximately $8,900, while an Adelaide plains farmer who irrigates would save some $3,560 every year.
“Significantly reduced electricity bills for small businesses will be good for jobs, investment and the local economy,” the Minister said.
“The SA-NSW interconnector also delivers an average $66 savings for households and will deliver a raft of renewable energy projects and hundreds of local jobs along its proposed route.”
The announcement was welcomed by ElectraNet chief executive, Mr Steve Masters.
“Receiving Major Development status highlights the significance of the proposed electricity interconnector between South Australia and New South Wales, which will reduce power prices, improve energy security and support the transition to a lower carbon economy,” Mr Masters said.
“This announcement is an important milestone for this project, which will be the first interconnector built between any Australian states in 15 years.
“ElectraNet welcomes the State Government’s decision as this will ensure a single, integrated and streamlined assessment of the development by all relevant authorities, agencies and stakeholders.
“We will continue with our comprehensive stakeholder engagement and preparing for regulatory approvals with the support of the South Australian Government, in conjunction with our New South Wales project partner, TransGrid.”