New England Connection Capacity Auction


TGS and its entities are committed to supporting the energy transition in Australia towards Renewable Energy (RE) generation. As part of this commitment, TGS has a new model for the provision of enabling transmission infrastructure that promotes the development of new RE projects in NSW. The new model aims to simplify the challenges which are otherwise associated with transmission developments of a regulated nature. 

TGS sees an opportunity for broader application of this model in RE zones throughout the National Electricity Market (NEM). The first such opportunity is a planned development in the New England area - the New England Transmission Infrastructure (NETI) development. The project is located between the regional towns of Tamworth and Gunnedah, NSW.

Why the Project is needed
The Australian electricity system is in transition from one substantially supported by coal resources, to one increasingly powered by renewable energy (RE). As coal fired generation assets retire, there is a need for investment in new generation capacity. The Australian Energy Market Operator (AEMO) has identified that without new generation capacity there will be a shortfall in supply. New energy zones have been identified as a way to encourage investment in large-scale renewable energy generation. Government, proponents and national organisations such as AEMO, are seeking innovative ways to explore energy zones as large scale options to enable the transition to renewables. This project seeks to test an innovative model for the deployment of transmission infrastructure to support new energy zones. 

Project scope
TGS will assess the feasibility of an innovative commercial model (directly funded by RE participants in exchange for firm capacity to connect to the NSW grid) to develop transmission infrastructure that unlocks new renewable energy investment in the New England area of NSW. 

The New England Transmission Infrastructure (NETI) development will comprise a purpose-built 330kV transmission line, which will enable up to 1400 MW of new renewable energy generation capacity. TGS will:

  • seek expressions of interest from potential renewable energy proponents seeking to obtain agreed capacity on the proposed transmission line
  • proceed to a ‘Request for Capacity’ (RFC) phase and finalising commercial and market details
  • close out commercial arrangements with RE proponents successful in the RFC phase.

Each project connected to the NETI will have an individual connection point and separate generator performance standards and marginal loss factors and will be subject to regulatory oversight for system security and operational purposes. Should the project achieve its objectives, TGS will likely proceed to the deployment of the new transmission line, although this deployment is not within the scope of this project. 

Key dates

  • EOI Launch – 17 June 2020 
  • Industry briefing session – 1 July 2020 
  • EOI submissions due – 29 July 2020 
  • RFC/Auction – 28 August 2020 
All interested parties should contact MUFG to obtain the EOI brief at NECCA@au.mufg.jp