The Australian Energy Regulator (AER) has approved ElectraNet’s proposed $45.7 million Stage 1a early works for its Mid North South Australia Renewable Energy Zone (REZ) expansion.
The project was identified by The Australian Energy Market Operator (AEMO) as an actionable project in the 2024 Integrated System Plan (ISP).
Following consultation, the AER determined that ElectraNet’s proposed incremental capital expenditure for the early works is prudent and efficient, and that all trigger events for the contingent project application have been met and the project costs exceed the materiality threshold.
The Mid North South Australia REZ expansion is a proposed transmission project that will involve constructing new 275kV and 132kV transmission lines to connect renewable energy sources to Adelaide and support growing industrial demand.
AEMO’s 2024 ISP confirms the earliest feasible in service timing for the Mid North South Australia REZ expansion project is July 2029.
The Stage 1a early works costs approved by the AER for the project will be added to ElectraNet’s total maximum allowed revenue for the 2023–28 period.
The AER said this adjustment will be reflected in customer bills from 2026–27 onwards, with an estimated increase of $0.56 per annum in residential electricity bills in South Australia.
In support of its application lodged on 28 March 2025, ElectraNet submits that undertaking early works will enable it to:
- Initiate community and stakeholder engagement, including consultation with Traditional Owners, to support social licence and inform project development
- Commence easement acquisition activities on the critical path to achieve the target delivery date of July 2029
- Progress project planning activities to ensure its Stage 2 application, which will include the bulk of the Project’s costs, will be as low as possible
The project is subject to the Regulatory Investment Test for Transmission (RIT-T). As part of this process, ElectraNet is required to publish a Project Assessment Draft Report (PADR) by December 2025.
The PADR will identify the credible options for meeting the need identified by AEMO. If the project proceeds as expected, the AER will receive a Stage 1b early works contingent project application from ElectraNet seeking approval for the next phase of early works leading up to the Stage 2 submission.
ElectraNet welcomed the AER’s decision to approve its early works funding.
“This decision will allow us to continue with project development activities, including stakeholder and community engagement, to determine the most prudent and efficient way to meet the identified need that optimises overall community and customer benefit,” the utility said in a statement.
“These early works will inform a detailed cost benefit analysis for the RIT-T that aims to deliver an expanded and more reliable transmission network to meet the demand of our rapidly growing Northern regions in South Australia.”
