Transgrid backs AEMO’s call for rapid infrastructure build-out

AEMO’s Draft 2026 Integrated System Plan (ISP) identifies $9 billion of actionable and future transmission projects necessary for Australia to complete the energy transition with a total $128 billion investment required across the entire sector.

Crucially, AEMO confirms these transmission investments are expected to repay their costs, save consumers an additional $22 billion in avoided costs and deliver emissions reductions valued at $2 billion.

Transgrid CEO Brett Redman said major transmission projects remain critical as NSW enters the ‘deep transition’, which will take the state from 40% to 90% renewables over the next decade.

“Old coal-fired generators are closing and we need to ensure new clean generation can connect efficiently to the grid.

“AEMO has confirmed the vital role of new transmission infrastructure in putting downward pressure on consumers’ energy bills, by moving renewable energy from high-resource areas to the industries, cities and towns that need it,” he said.

“Transgrid is committed to delivering the major transmission investments that will unlock these benefits for NSW consumers, such as the nation-critical EnergyConnect interconnector – one of the first committed projects in the ISP – which has now achieved 95% construction completion.

“When it is commissioned next year, EnergyConnect will increase renewable energy sharing between NSW, Victoria and South Australia, adding reliability and stability to electricity supply across the National Energy Market and enabling consumers to access the lowest cost generation available.

“In addition, we have commenced construction on the nation-building HumeLink project, which will unlock the full capacity of Snowy 2.0 and other new renewable energy generators.” 

The Draft ISP says renewable energy, firmed with storage, backed up by gas and connected with upgraded networks, remains the least-cost roadmap to meet Australia’s energy needs. 

Transgrid’s EnergyConnect and HumeLink are among seven transmission projects identified as committed and anticipated, while Sydney South Ring, Sydney North Ring (Hunter Transmission Project), VNI West and QNI Connect have been maintained as actionable.

Mr Redman welcomed the first ever inclusion of distribution network investments such as the Dubbo distribution project, which will export generation and storage to supply the Sydney, Newcastle and Wollongong load centres.

“The entire industry must work together if NSW is to best navigate the next phase of its transition from coal power to renewables,” he said.

“Transgrid also welcomes AEMO’s emphasis on the need for cooperative action on social licence issues to nurture trust with regional communities.

“Early and genuine engagement with communities is critical to the efficient planning and delivery of infrastructure investment over the next decade.

“We will continue to work closely with landowners, local communities, councils and other key stakeholders to reduce impacts and maximise social and economic benefits for regional NSW.”

Media enquiries: James Atkinson 0475 965 030 / james.atkinson@transgrid.com.au