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Highlights
- Australia advances toward 100% renewable energy
- Major boost in interstate power transmission capacity
- Project EnergyConnect paves the way for lower power prices
Australia has taken a major stride toward a fully renewable-powered grid with the activation of the first phase of Project EnergyConnect, the nation’s most significant energy transmission development to date. The initial section of the line, stretching 135 kilometres from Robertstown in South Australia to Buronga in New South Wales, with an additional 24-kilometre spur to Red Cliffs in Victoria, marks a turning point in the country's energy transformation.
This major infrastructure project, partly involving infrastructure services provider (ASX:CIM), aims to help South Australia reach 100% renewable electricity by 2027. In its current phase, the transmission line enables the transfer of an extra 150 megawatts (MW) of electricity between South Australia and neighbouring states. However, once the second phase is complete, extending the link to Wagga Wagga, this capacity will surge to 800 MW.
The strengthened interconnection will allow South Australia to import up to 750 MW and export up to 700 MW of power initially. These capacities will grow to over 1.3 gigawatts (GW) in both directions by the end of 2027. This enhanced flexibility is expected to alleviate bottlenecks in the national electricity market, where surplus renewable energy in one region often fails to reach areas still dependent on fossil fuel generation.
South Australia is already leading the way in renewable adoption, with 72% of its electricity coming from wind and solar sources over the past year. However, limitations in energy storage and transmission have prevented this figure from being higher. The newly operational transmission line will help unlock more of that renewable potential by enabling surplus power to flow into Victoria and New South Wales, while also offering support to South Australia during times of high demand or low generation.
While there are concerns about cost overruns in building new transmission lines—which could affect future infrastructure planning—the long-term benefit is clear. Stronger transmission capabilities support the deployment of commercial-scale renewable projects and allow more investment in battery and storage solutions. This could benefit companies engaged in renewable energy development, such as (ASX:IFT), which has interests in infrastructure and energy storage.
As Australia edges closer to a renewable energy milestone, Project EnergyConnect is proving to be more than just wires and towers—it's a powerful catalyst for the nation’s sustainable energy future.
