Transgrid has negotiated a new fixed-price contract with Elecnor Australia for EnergyConnect.
With the project being critical to the reliability and security of the National Electricity Market (NEM), Transgrid said it has taken steps to ensure the project is delivered in the most prudent and efficient manner for energy consumers. This includes negotiating a new fixed-price contract with Elecnor Australia, who Transgrid said is best placed to optimise delivery timeframes, minimise costs and maximise long-term benefits to consumers.
The revised net project cost of $3.6 billion reflects unforeseeable factors such as COVID-related global supply chain impacts on key equipment and materials, critical labour shortages, record inflation, the impacts of the war in Ukraine, flooding and the insolvency of Elecnor Australia’s construction partner Clough.
The original forecast cost was $2.1 billion (2023 REAL). Construction is scheduled for completion in September 2026, enabling the Australian Energy Market Operator (AEMO) to commence internetwork testing before the summer period.
Despite the challenges, the project has achieved energisation of the first portion, which includes lines from South Australia and Victoria to Buronga in New South Wales, with internetwork testing now commenced.
Hundreds of workers are currently constructing the second and final 540km portion between Buronga and Wagga Wagga, with more than $200 million being injected into the Riverina, Murray and Sunraysia regions to date.
Transgrid will continue to work with stakeholders, including AEMO and relevant governments, to deliver this critical infrastructure and provide energy security and reliability to the NEM.
