System Strength Project

The forecast retirement of NSW coal generators and the growth in new renewables in the coming decade is driving an urgent need for new sources of system strength.

The System Strength Project has been established in collaboration with the NSW Government to fast-track the deployment of synchronous condensers at five strategic locations on Transgrid’s network.

The NSW Government has recently directed Transgrid to proceed with this Project as a Priority Network Infrastructure Project (PNIP). PNIP is defined as ‘A Priority Network Infrastructure Project designated under the Electricity Infrastructure Investment Act 2020 that allows the Minister for Energy to fast track critical network projects. Directing a project gives the state more control over how and when a project is delivered and helps streamline the cost recovery process.”

This project represents the first stage of synchronous condenser deployments in Transgrid’s network, as part of Transgrid’s broader portfolio of solutions to maintain system strength in NSW. The total portfolio of solutions includes ten synchronous condensers, 5 GW of grid-forming BESS and the operation of existing and new synchronous generators to fill gaps in system strength.

The electricity grid needs a strong heartbeat to keep everything running smoothly - from connected generators to the protection systems that operate in the blink of an eye to keep us safe. For 70 years, coal generators have provided the strong heartbeat as a byproduct of creating electricity.

Now that our large coal generators are retiring, we must build new infrastructure to keep the NSW’s grid’s heartbeat strong.

Maintaining system strength is essential to keep the power system safe, secure and reliable. The project will also lower emissions by supporting a stable grid for new wind and solar projects and create local jobs and business opportunities during construction.

The project is expected to deliver the synchronous condensers up to 18 months earlier than normal regulatory approval processes would allow. This is expected to deliver more than $1 billion in additional net market benefits.

For more information on the benefits of accelerating the delivery of synchronous condensers please see the Project Assessment Conclusions Report

This project will consist of the design, manufacture, construction, installation and commissioning of synchronous condensers, and associated substation yard works at five NSW locations, including Kemps Creek (Western Sydney), Newcastle, Wellington, Armidale and Darlington Point.

The following project works will occur at each of the five substations:

• Civil works to extend the substation yard, and install new foundations, drainage, earthing grid and fencing
• Environmental management including vegetation trimming and clearing to make way for the synchronous condenser shed to safely house the machinery on flat ground
• Modifications and upgrades to local roads for transportation access, where required
• Electrical works, including busbar extensions to integrate the synchronous condenser into the existing substation, and installation of associated protection and control equipment
• The installation and commissioning of the synchronous condenser plant and associated infrastructure.

• Construction and operation of each synchronous condenser is considered ‘development permitted without consent’ in accordance with Section 2.44 of the State Environmental Planning Policy (Transport and Infrastructure) 2021.
• On this basis, Transgrid is currently preparing a Summary Environmental Report (SER) for each Synchronous Condenser in accordance with Part 5 of the Environmental Planning and Assessment Act 1979. A link will become available post determination.'

Read the FAQs and answers

• Email network.solutions@transgrid.com.au
• Phone 1800 222 537

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