The interconnector will form a crucial element of the energy network for the future, connecting communities and businesses in the east of NSW with clean energy sources in western NSW, SA and Victoria, resulting in increased reliability in readiness for the anticipated closure of ageing coal-fired generators in NSW.
Clean Energy Council Director Energy Transformation Lillian Patterson said the decision was a positive move by the AER as it demonstrates the benefits that interconnection and renewables have for consumers.
“We strongly support the project, which passes through multiple renewable energy zones and will allow new renewable energy projects to connect to the National Electricity Market” Ms Patterson said. “Connecting more renewable energy projects will provide us with lower-cost and more diversified supply, which will increase reliability and ultimately result in lower energy prices for customers. This interconnector is important for the future of Australia’s National Electricity Market, as it builds a more flexible and resilient power system with more sources of clean energy. This interconnector will also generate new jobs and investment in regional areas, not just from the interconnector itself but also from new renewable energy projects.”
According to the AER, the interconnector project satisfies the regulatory investment test for transmission (RIT-T), which demonstrates the project will deliver benefits to energy consumers.
Construction can now commence on the interconnector, which is expected to be completed progressively through 2022 to 2023.
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