Securing future energy supply for Greater Sydney, Newcastle and Wollongong

Transgrid has undertaken initial modelling and technical analysis as part of a detailed assessment of options to strengthen and increase energy flow into the nation’s most critical energy network in response to the Australian Energy Market Operator’s Integrated System Plan – the nation’s foremost energy plan.

Transgrid has been tasked with investigating options to strengthen the electricity network into South Western Sydney, enabling supply for lower-cost renewable energy from regional NSW and interstate to households and businesses across Western Sydney and the Illawarra.

Executive General Manager of Network Jason Krstanoski said the community is encouraged to have their say about options for the Sydney Ring South project, including a proposed transmission connection between Bannaby, in the south of NSW, and South Western Sydney.

“As coal-fired power stations reach end-of-life, our electricity is increasingly sourced from lower-cost renewable energy sources located across NSW,” he said.

“That means the existing transmission corridor approaching Sydney from the south is under increasing pressure, creating a bottleneck that limits electricity flow and reduces our ability to deliver new cheaper forms of power to our rapidly growing cities and support an increasingly electrified modern economy.

“The Australian Market Energy Operator has identified Sydney Ring South as a safe, secure and reliable long-term electricity supply solution for Sydney, Wollongong and Newcastle, which collectively account for three-quarters of NSW’s energy demand.

“By opening up the supply of lower-cost renewable energy, we anticipate Sydney Ring South would enable annual power bill savings of up to $51 for a typical NSW household and around $110 for an average small business.

“While planning is in the early stages and no decisions have been made, Transgrid is inviting early feedback from communities, consumers, government, industry and other interested stakeholders to help shape the future of the project.”

Sydney Ring South would link Greater Sydney with vast renewable energy sources connected by major electricity projects already underway including EnergyConnect, HumeLink and VNI West as well as Snowy 2.0 and the South West Renewable Energy Zone.

The project would also support industrial growth in Western Sydney, Australia’s third largest and fastest growing economy, including advanced manufacturing, logistics, health, education, aviation and digital services such as data centres.

It would also help realise the full potential of major economic powerhouses including Western Sydney International Airport and the new City of Bradfield, and support electrification of heavy industry in Western Sydney and the Illawarra.

Transgrid has released a Project Assessment Draft Report, the first stage in the independent cost-benefit regulatory process, outlining six potential technical solutions for Sydney Ring South.

The report identifies a preferred technical option that would potentially deliver an estimated $3.2 billion in net market benefits for NSW consumers and the broader economy. Iterations of the option include augmentations to improve utilisation of the existing 330 kV network by 2030-31 and a new 500 kV transmission line from southern NSW near Bannaby to South Western Sydney, more than doubling the capacity of the southern transmission corridor into Sydney.

“This project will help secure and power our growing communities across Greater Sydney, support future jobs and investment, keep downward pressure on electricity bills and ensure impacts on local communities are carefully managed,” Mr Krstanoski said. 

“The Project Assessment Draft Report is the start of the conversation, with no route or corridor selected as yet, and we are encouraging the community, businesses and all stakeholders to get involved in the engagement process and make a submission to help inform ongoing detailed planning.”

The Sydney Ring South Project Assessment Draft Report, and more information on how to make a submission by 28 August, can be found here.

Media enquiries: Mark Nolan 0429 047 136