Transgrid has finalised a $100 million contract to secure critical transmission equipment as it prepares to deliver the Australian Government’s key grid projects and allow a clean energy future for Australians.
“We continue to build our global supply chain to secure the specialised kit needed to build the future clean energy grid and ensure competitive and efficient delivery of the Federal Government’s energy plans,” CEO Brett Redman said.
Redman reported that the company had finalised a $100 million contract with ZTT Australia Pty Ltd to supply 17,500 kilometres of high-voltage conductors.
Additionally, Transgrid is finalising another contract with an Australian company to supply other locally-produced conductor elements.
The contract is part of Transgrid’s Powering Tomorrow Together program, which bundles procurement for significant projects like HumeLink, VNI West, and EnergyConnect, saving up to $500 million.
According to the company, the program enables the procurement of materials such as substation equipment earlier and at a lower cost, allowing limited resources to be utilised across several projects. The orders are also backed by a $400 million Federal Government underwriting as part of the Rewiring the Nation program.
Transgrid Executive General Manager, Delivery, Craig Stallan, recently flew to Asia to sign a deal under which ZTT Australia Pty Ltd, a subsidiary of ZTT International Ltd) would supply the conductors.
“Transgrid is investing $16.5 billion in transmission infrastructure in NSW over the next decade to accelerate the Federal Government’s vision. Our major transmission projects involve a long shopping list for big kit, and we are competing with the likes of Europe, the USA and the United Kingdom to secure highly sought after slots on production lines,” Stallan said.
According to Stallan, the new conductors will be used on HumeLink and VNI West, and securing supplies now allows Transgrid to complete the projects sooner and cheaper.
“It’s also reducing risk as we compete with other energy companies and nations to secure critical, large-scale equipment, materials and skilled labour to deliver the projects Australia needs,” he added.
ZTT Australia General Manager Dean Farrar said the conductors will be produced at ZTT Group’s Hekou manufacturing facility and shipped to Australia in 2024 and 2025.
“We are honoured to be partnering with Transgrid for their current and future major projects. This contract builds on our ongoing commitment to support the Australian energy and telecommunications markets, now and into the future,” Farrar stated.
Transgrid has also secured 15 shunt reactors and 25 single phase transformers for around $150 million this year, with delivery beginning in late 2024.
