Transgrid has begun ordering crucial transmission supplies after receiving a $385 million underwrite from the Australian Government as part of its Rewiring the Nation program.
“Transgrid is leading the energy transition, accelerating the nation-critical transmission projects needed to deliver cheap, clean and reliable electricity to millions of Australians. We welcome the Commonwealth’s underwriting agreement which is key to locking in the long-lead items required to accelerate the nation’s energy transition and fast-track construction of the energy superhighway,” Trandsgrid CEO Brett Redman said.
According to Redman, Transgrid is accelerating the energy transition by consolidating procurement for its major projects, HumeLink, VNI West, and EnergyConnect. Redmond added that this allows Transgrid to compete globally for highly sought-after equipment and deliver it to customers faster and cheaply.
The Powering Tomorrow Together program aims to de-risk a highly competitive supply chain in which energy businesses compete to secure vital, large-scale equipment, resources, and experienced workers to deliver projects that will change the nation’s grid.
“By rolling EnergyConnect, HumeLink and VNI West into one procurement program, we’re able to purchase materials, like steel and substation equipment earlier and at a lower cost, enabling limited construction resources to be secured and used across all three projects,” Redmond stated.
Redman said it would hasten the integration of renewables into the grid, allowing for a faster transition to a low-carbon economy and lower electricity rates.
The $1.8 billion EnergyConnect project is well underway, with tower installation on the project’s western alignment between Buronga and the South Australian border slated to begin this month.
It comes after last week’s announcement of greater community consultation and quicker development for VNI West, a new transmission project that will safeguard power supply and increase energy sharing between Victoria and NSW.
Transgrid has a substantial ‘shopping list,’ which includes $385 million in equipment, transformers, steel, and cables for HumeLink and VNI West, which will benefit millions of consumers in Victoria, NSW, and South Australia when combined with EnergyConnect.
Redman recently visited South Korea and Japan, where he secured initial contracts worth around $150 million for the following Long Lead Equipment for use on the HumeLink and VNI West projects:
- 25 single-phase 500kV transformers from Hyosung in South Korea due in late 2024 or early 2025, and
- Hitachi Energy will provide 15 500kV shunt reactors in early 2025.
The Powering Together Tomorrow program will also obtain the following:
- 14,500 kilometres of transmission line conductor, enough to connect Sydney to Los Angeles, and
- 58,000 tonnes of steel to construct 1,350 transmission towers.
