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Highlights
- NSW approves the HumeLink project to support Snowy 2.0 power transmission.
- Project brings 1,600 construction jobs and $6.3 billion in regional investment.
- Transgrid will lead the project, addressing community and environmental concerns.
The New South Wales (NSW) Minns government has officially approved the HumeLink transmission project, a large-scale infrastructure endeavor valued at $4.8 billion aimed at enhancing the power grid in the region. This project is designed to facilitate electricity transmission from the Snowy 2.0 hydroelectric project, currently under construction in the Snowy Mountains. Expected to become a key infrastructure asset, HumeLink will span 365 kilometers, forming a vital “energy infrastructure spine” across southern NSW.
According to NSW Planning Minister Paul Scully, HumeLink is expected to generate significant economic benefits for the area. The project promises approximately 1,600 construction jobs and is projected to drive a substantial $6.3 billion into the regional economy. This substantial investment reflects the government's focus on strengthening infrastructure that supports renewable energy sources, such as Snowy 2.0, as part of the state's long-term sustainability goals. However, before moving to the construction phase, HumeLink still requires approval from the Commonwealth government, a step anticipated to conclude by late this year. If approved, construction is projected to start soon, with completion estimated around 2027.
HumeLink has faced considerable opposition from local communities along its route. Two parliamentary inquiries examined the potential of placing transmission lines underground in response to concerns from landholders and residents worried about environmental and visual impacts. However, the state government determined that underground transmission would incur costs that exceed what regulatory frameworks allow for consumer-related transmission expenses. Instead, the design of HumeLink has been adjusted to minimize disruption, situating most of the transmission lines within existing infrastructure corridors to ease environmental and community impact.
Transgrid (ASX:TRN), which will lead HumeLink’s development, is also set to implement environmental measures to address biodiversity impacts stemming from the project. As part of these measures, Transgrid will offer an offset package and provide a $502.3 million bank guarantee to ensure these offsets are executed appropriately. This commitment highlights Transgrid’s focus on balancing necessary infrastructure with ecological responsibility.
