Why we need the Hunter Transmission Project for energy security
By Mike Young
Executive Director Planning and Communities at EnergyCo
There is no transition without transmission.
While transmission lines may not be popular, the reality is that we urgently need to connect at least 12 gigawatts of renewable energy generation to the grid to transition our economy towards clean, affordable and reliable energy and to replace our aging coal-fired power stations.
As a famous treasurer may have once said – “this is the transition we have to have” – and this transition needs to occur as quickly as we can make it happen while bringing local communities with us on the journey.
Replacing almost three-quarters of our energy generation capacity with renewable energy is a once-in-a-generation challenge and this is magnified by geography with the vast majority of renewable projects located nowhere near the existing power stations.
The Australian Energy Market Operator estimates that we need to build around 4,000 kilometres of new high voltage transmission over the next 10 years to connect enough renewable energy to ensure our future energy needs are met.
The Hunter Transmission Project will play a critical role in the transformation of our energy system by connecting the two largest Renewable Energy Zones (REZs) in the Central-West Orana and New England regions into the grid.
The project involves a new double circuit 500 kilovolt (kV) transmission line around 115 kilometres long from Bayswater in the Upper Hunter to Eraring on the Central Coast. There is no secret that this is a large project with 70 metre towers and a 70 metre easement required to host the transmission line.
However, both the NSW Government and Australian Government have identified the project as critical for our future energy security and that it must be ‘energised’ by early 2028.
This is primarily because it will unlock electricity supply from the Central-West Orana and New England REZs and delivering it to consumers in the Hunter, Sydney and Illawarra where 80% of the State’s electricity is consumed.
EnergyCo is the government authority responsible for delivering the Renewable Energy Zones and the Hunter Transmission Project on behalf of the people of NSW.
Local knowledge is important during the planning and assessment process and we’ll be working with the local community over the next 18 months to get the details right.
This includes publicly exhibiting the preliminary corridor and publishing a report about how this feedback has been considered as well as having a local community team available to meet, provide information and listen to suggestions in the weeks and months ahead.
Selecting a route for a major new transmission line in the Hunter region is always going to be challenging and importantly 85 percent of the proposed corridor is located on government land or areas already disturbed by open cut mining. The corridor also avoids sensitive areas such as the Hunter Valley wineries and major residential areas.
While it will not be possible to completely avoid private land, we’ll be working with a small number of potentially affected landowners in the coming months to minimise impacts and improve the design where possible.
Potentially affected landowners will be asked to host the transmission line by mutual agreement and will receive compensation from the NSW Government.
Landowners hosting the transmission line will also receive an additional payment of $200,000 per kilometre under the newly introduced Strategic Benefits Payment Scheme, which is designed to share the benefits of the energy transition with the people that are helping to make it possible.
The project will inject well over $1 billion into the region and employ several hundred people during the 2 year construction period. There will also be a tens of millions of dollars available for community benefits to make sure the project leaves a positive legacy in the region.
No matter what your views are about renewable energy and transmission, it’s projects like this that will ensure that the Hunter region will continue to be the energy powerhouse of NSW long into the future.
Further information about the HTP and how to join the conversation can be found at www.energyco.nsw.gov.au/htp
