Project Overview

ElectraNet has been exploring options to facilitate South Australia’s energy transformation, while helping to lower electricity prices and improve system security.

In November 2016, ElectraNet released a consultation report that explored the technical and economic feasibility of a new interconnector as well as alternative non-network solution options, through the Regulatory Investment Test for Transmission (RIT-T).

The RIT-T is the economic cost benefit test that is overseen by the Australian Energy Regulator (AER) and applies to all major network investments in the National Electricity Market.

During the consultation we received extensive feedback and input from electricity market participants and the wider community.

In June 2018, the Project Assessment Draft Report (PADR) was released. The report identified that the construction of a new, high capacity interconnector between South Australia and New South Wales would deliver substantial net benefits to customers.

 

Current status

In February 2019 we released the SA Energy Transformation PACR which is the final step in the RIT-T process.

The PACR identifies that a high-capacity interconnector between South Australia and New South Wales, with an added connection to north west Victoria, is the preferred option to generate a range of benefits for South Australia, New South Wales and Victoria. These benefits include improved electricity affordability, energy and network security and the connection of renewable energy needed to meet Australia’s carbon emissions targets.

Residential customers should see annual savings on their electricity bills of $66 in South Australia and $30 in New South Wales. For small businesses annual savings are expected to be $132 in South Australia and $71 in New South Wales. These savings would start flowing as soon as the new interconnector is energised.

The proposed interconnector would be built between Robertstown in South Australia and Wagga Wagga via Buronga in New South Wales, with an added connection to Red Cliffs in north west Victoria.

To deliver the project, ElectraNet would partner with TransGrid, the manager and operator of the high voltage electricity transmission network in NSW. Should the project be approved, TransGrid would fund the works within its jurisdiction.

It is estimated the project will cost approximately $1.5 billion but will deliver around $2.45 billion in benefits, meaning the savings delivered by the project will exceed the construction costs paid by customers.

The project has also been given an official name – Project EnergyConnect. Ongoing updates regarding how stakeholders and community members can participate and engage with the project are available on the Project EnergyConnect website.

Dispute Determination

On 5 June, 2019 the Australian Energy Regulator (AER) published its determination in response to a dispute notice lodged by the South Australian Council of Social Service (SACOSS) on 15 March, 2019.

The dispute related to conclusions made in the Project Assessment Conclusion Report (PACR) on the grounds the South Australian Energy Transformation RIT-T PACR inadequately addressed the risk of unintended consequences as a result of system security risks associated with the retirement of three South Australian gas plants. It also related to whether ElectraNet’s modelled market benefits are achievable if the SPS is unable to be implemented as intended.

The AER determined that ElectraNet “is not required to amend its PACR for the SAET RIT-T”. The AER is satisfied additional information provided by ElectraNet and the Australian Energy Market Operator (AEMO) demonstrates the SPS is technically feasible, will operate as intended and therefore our economic analysis is realistic.

ElectraNet welcomes the AER’s decision. We remain focused on progressing the interconnector project through the regulatory approval process and delivering this important transmission infrastructure for South Australia and the NEM.

Following the conclusion of this dispute process, the AER will consider the next step in the RIT-T process, with a decision to be released in the second half of 2019.

To read the AER’s determination and the background information provided in response to the dispute, please visit the AER website.

Project Assessment Conclusions Report

Project Assessment Conclusions Report (PDF, 5903 KB)

PACR - Supplementary reports

Special Protection Scheme Report (May 2019) (PDF, 2 MB)
PACR Market Modelling Methodology Report (PDF, 1944 KB)
SA Energy Transformation RIT-T External Review (Oakley Greenwood) (PDF, 448 KB)
Gas Price Forecast Review (EnergyQuest) (PDF, 135 KB)
Network Technical Assumptions Report (PDF, 1726 KB)
SAET RIT-T Consolidated Non Interconnector Option (Entura) (PDF, 1371 KB)
Investigation of Interim Arrangements (Entura) (PDF, 2719 KB)
Project note responding to PADR submissions (Entura) (PDF, 791 KB)
Curnamona Province Analysis (AME Advisory) (PDF, 495 KB)
Cost Estimate Report (PDF, 1660 KB)
ElectraNet Transmission Line Cost Review (Jacobs) (PDF, 1581 KB)
SA-NSW Interconnection – Analysis of Impacts on Liquidity in SA (CQ Partners) (PDF, 1640 KB)
SA-NSW Interconnector – Updated Analysis of Potential Impact on Electricity Prices and Assessment of Broader Economic Benefits (ACIL Allen) (PDF, 1247 KB)
Note on selection of an assessment period for a RIT-T and the use of terminal values (HoustonKemp) (PDF, 218 KB)
Market Modelling and Assumptions Data Book (Excl, 185 KB)
Market Modelling Result Books (Excl, 1591 KB)
Economic Evaluation Summary Spreadsheet and Charts (Excl, 3271)
Incremental NPV Benefits of Red Cliffs to Buronga Line (Excl, 57 KB)

PADR - Submissions

AGL (PDF, 68 KB)
Central Irrigation Trust (PDF, 155 KB)
Meridian Energy (PDF, 85 KB)
Solar Reserve (PDF, 675 KB)
SA Government (PDF, 4 MB)
Fresh Eyre (PDF, 50 KB)
Ausker (PDF, 580 KB)
Business SA (PDF, 60 KB)
Charles Sturt University (PDF, 215 KB)
ARC Mesh (PDF, 315 KB)
Powerlink (PDF, 120 KB)
Tasmanian Department of State Growth (PDF, 90 KB)
Total Environment Centre (PDF, 140 KB)
AusNet Services (PDF, 400 KB)
Australian Energy Council (PDF, 330 KB)
Delta Electricity (PDF, 1,600 KB)
Energy Australia (PDF, 300 KB)
Energy Consumers Australia (PDF, 70 KB)
Energy Users Association of Australia (PDF, 830 KB)
ENGIE (PDF, 100 KB)
Havilah (PDF, 1.6 MB)
Lyon Group (PDF, 185 KB)
Maoneng (PDF, 45 KB)
Origin (PDF, 330 KB)
Public Interest Advocacy Centre (PDF, 125 KB)
Renew Estate (PDF, 765 KB)
SACOME (PDF, 500 KB)
SACOSS (PDF, 325 KB)
Science Party of NSW (PDF, 60 KB)
SEA Gas (PDF, 170 KB)
Smart Wires (PDF, 150 KB)
Snowy Hydro (PDF, 155 KB)
The Energy Project (PDF, 1 MB)
The Energy Project - Supplementary submission (PDF, 372 KB)
Tilt Renewables (PDF, 142 KB)
TransGrid (PDF, 240 KB)

Public forums

Adelaide public forum presentation - July 2018 (PDF, 5 MB)
Sydney public forum presentation - August 2018 (PDF, 4 MB)
Deep dive presentation - August 2018 (PDF, 758 KB)
Public forums feedback summary (PDF, 109 KB)

Documents Published in response to requests at public forums - August 2018

The total cost of the non-interconnector option (PDF, 200KB)
Net Present Value model output for the low scenario (Excel, 750KB)
Net Present Value model output for the central scenario (Excel, 750KB)
Net Present Value model output for the high scenario (Excel, 770KB)
Datasheets sitting behind PADR figures and charts (Excel, 200KB)
Generator expansion for all scenarios (modelling outputs) (Excel, 800KB)
Functional Specifications of line options (PDF, 420 KB)

Project Assessment Draft Report (PADR) and associated reports - June 2018

SAET - Project Assessment Draft Report (PDF, 3 MB)
Information Sheet - SA Energy Transformation (PDF, 3 MB)
Basis of Estimate for PADR (PDF, 1 MB)
Network Technical Assumptions (PDF, 617 KB)
SA - NSW Interconnector - Preliminary Projected Impact on Electricity Prices (ACIL Allen) (PDF, 342 KB)
Gas Price Forecast Review (PDF, 134 KB)
Consolidated Non-Interconnector Option (PDF, 1 MB)
Market Modelling Report (PDF, 1 MB)
Market Modelling and Assumptions Data Book (Excel, 213 KB)
RIT-T Market Modelling High Level Review (Oakley Greenwood) (PDF, 182 KB)

Project Specification Consultation Report (PSCR) and associated reports - November 2016

PSCR (PDF, 2 MB)
Fact Sheet - Exploring South Australia's Energy Transformation (PDF, 980 KB)
South Australian Energy Transformation forum (PDF, 2 MB)
Market Modelling Approach and Assumptions Report (PDF, 759 KB)
SAET Supplementary Information Paper (PDF, 670 KB)
 
 

Project Specification Consultation Report (PSCR)

 

Project Assessment Draft Report (PADR)

 

Project Assessment Conclusions Report (PACR)

 

SAET Supplementary Information Paper

Learn more about the identified need, services that could meet it, and next steps in our process for the SA Energy Transformation project.

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Project Specification Consultation Report South Australian Energy Transformation

ElectraNet is undertaking a Regulatory Investment Test for Transmission (RIT-T) to explore potential solutions to help address the increasing challeng...

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Fact Sheet South Australian Energy Transformation

ElectraNet is exploring potential solutions to help address the increasing challenges of transitioning towards a low-carbon future and...

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South Australian Energy Transformation Forum Presentation

View the presentation provided at our South Australian Energy Transformation forum.

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South Australian Energy Transformation RIT-T Market Modelling Approach and Assumptions Report

Read this consultation report which outlines the proposed methodology for assessing options considered in the South Australian Energy Transformation R...

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