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Regulator ticks SA-NSW energy link, affirms Mallee benefits

A $1.5 billion project that would allow Mallee solar farms to feed the South Australian and NSW energy grids has cleared a key hurdle.

The proposed electricity “interconnector” – running from SA’s Robertstown to Wagga Wagga, through Buronga – had its business case ticked off last week by the Australian Energy Regulator.

Included in the proposal was a link between Buronga and Red Cliffs, allowing north-west Victorian generators to supply power to both states.

In its report, the regulator concluded the proposal’s preferred option was “robust”.

The report found the interconnector would add 400MW of capacity to the Victorian Murray River energy zone – double its current capacity.

While 479MW in additional transmission was said to be needed in the region, the report found the interconnector adding 400 MW would save an estimated $83.7 million in needed investment.

The interconnector, dubbed Project EnergyConnect, is a joint proposal by ElectraNet in SA and TransGrid in NSW.

They estimate a cost of $1.53 billion for the interconnector, which includes $46 million for the connection to Red Cliffs.

The Australian Energy Regulator gave its approval for a “regulatory investment test” to be carried out, assessing whether the project would ensure “affordable and reliable energy for consumers”.

Infrastructure Australia last year rated the South Australia to NSW interconnector as a “high-priority initiative”.

The Australian Energy Market Operator (AEMO), in a draft plan released last month, said Project EnergyConnect was “close to completing its regulatory approval process and should be delivered in 2023-24”.

AEMO listed the project as a “no regret” initiative, demonstrating value across both fast-change and slow-change scenarios.

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