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Category: Electricity Energy and Utilities / States and Territories / Government and Politics

Interconnector options explored to shore up SA's electricity supply

Monday, 7 Nov 2016 12:53:53 | Tom Fedorowytsch

ElectraNet has warned SA customers will pay more because of increased gas prices. (ABC News: Nicole Price)

South Australia's electricity distributor ElectraNet is investigating four options for a new, expensive interconnector to the eastern states.

The high-voltage powerline would either be built to Bulli Creek in Queensland, Mount Piper or Buronga in New South Wales, or Horsham in Victoria.

ElectraNet said the project could cost between $500 million and $2.5 billion, but it would shore up the South Australian electricity network in the wake of September's statewide blackout, when completed by 2022.

"South Australia needs a long-term solution that will facilitate our energy transformation, while improving system security and placing downward pressure on electricity prices," ElectraNet chief executive Steve Masters said.

The company has warned South Australian customers will pay $500 million more per year than those interstate because of increases in gas prices.

"One credible option is a new interconnector between South Australia and the eastern states, which would increase access to lower cost generation," he said.

The existing Heywood interconnector between South Australia and Victoria is a vital part of the state's supply following the closure of the Port Augusta power station, but it overloaded and tripped during the power crisis.

States should help pay for interconnector, Premier says

ElectraNet has suggested a new interconnector would ensure South Australia's high rates of renewable energy — about 45 per cent from wind farms and rooftop solar — is better supported.

"Countries such as Denmark, Germany and the United Kingdom also source a high percentage of their energy needs from renewable generation, but have much stronger [interconnectors] that has enabled its integration," Mr Masters said.

He said ElectraNet would also examine alternatives to a new interconnector, including energy storage.

South Australian Premier Jay Weatherill welcomed the report and said other states should help pay for a new interconnector.

"We're very excited that we're now having discussions about how we can play our clean, green renewable energy into the national electricity market," Mr Weatherill said.

"If the best way to actually play more renewable energy is to have better connection with renewable energy-rich South Australia, then that should be shared across the whole system, it shouldn't be a burden that just falls on one state."

ElectraNet has prepared a report which kicks off a cost-benefit test that governs major investments in the national energy market.

AustraliaPlus


 

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