Project EnergyConnect stakeholder update

Publication date:
7 August 2020
Resource type:

PIAC responded to ElectraNet’s update regarding Project EnergyConnect.

We consider the overall benefits of the project might be lower than originally estimated. In making its RIT-T determination in January 2020, the AER questioned several assumptions made by ElectraNet and found “the net benefits in the central scenario may be significantly lower (about $269 million rather than $924 million) using the alternative inputs and assumptions.”

PIAC is concerned that there has been a material change in circumstances for Project EnergyConnect and recommends determining whether this changes the preferred option. 

We reiterate our concerns that South Australia is the primary beneficiary of the project while NSW bears the majority of costs and that ElectraNet and TransGrid should model the division of costs and benefits between different NEM regions as a result of the project as part of its updated cost benefit analysis.

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