Following all New South Wales and Federal government approvals, Trasngrid’s Board has made the final decision to invest in the $4.89 billion HumeLink transmission project, with construction set to commence in early 2025.
Transgrid said the project is expected to deliver more than $1 billion in net benefits for Australian consumers and will provide substantial opportunities for suppliers as well as jobs at both the regional and national levels.
Transgrid Group CEO, Brett Redman, said, “Transgrid security holders have agreed to invest $1.5 billion to deliver this critically important infrastructure and this follows their $690 million investment to support the delivery of VNI West CPA1 earlier in 2024.”
The Clean Energy Finance Corporation (CEFC) is backing the project, providing approximately $450 million in concessional-loan financing for HumeLink and an additional $1 billion support via subordinated notes. This is in addition to CEFC funding of $140 million executed in August 2024 to Transgrid’s other major transmission project – the VNI West interconnector project (NSW).
“The Federal Government’s commitment to provide concessional finance for these mega projects is critical as they would not be possible otherwise, and I want to acknowledge Minister Bowen and the CEFC for their support.
“Transgrid and our delivery partners are ready to get on with delivering HumeLink, to reinforce the Southern New South Wales electricity grid and enable the integration of new renewable generation,” Mr Redman said.
Following detailed design, investigations, procurement and project mobilisation, main construction works are expected to commence in early 2025 with completion in late 2027.
“Bringing this energy online will benefit millions of Australians on the eastern seaboard by providing consumers with access to cheaper renewable energy. HumeLink and VNI West are essential to the delivery of Australia’s energy transition, the Federal and New South Wales Governments’ net zero targets and providing consumers with access to more affordable renewable energy.”
Mr Redman recognised the importance of local communities in the planning and delivery of major projects like HumeLink.
“I want to acknowledge the landowners, communities, local contractors, business owners and other stakeholders that we have worked with to prepare HumeLink and will continue to engage with throughout and after construction.
“We will continue to prioritise local employment, training and skills development to provide lasting community benefits, including investing more than $11 million directly into the community to provide enduring social legacy outcomes.
“Our aim has always been to balance community needs and benefits with the long-term interests of all energy consumers, which comes with decarbonisation and more affordable energy in the longer term. This includes the choice of the most beneficial route that appropriately balances cost to consumers, environmental impacts and amenity for local communities.”
