Budget blowout and delays hit major power transmission line construction

ABC NEWS (Australia)

Australia's largest energy transmission project, designed to facilitate more renewable power from three states, has hit delays and cost blowouts that could have flow-on effects for consumers. The 900-kilometre line, stretching across South Australia, New South Wales and Victoria, was billed as a key part of the nation's sustainable energy future.

Transcript

00:00In Australia's charged energy debate, ambitious plans for transmission projects loom large.

00:08None bigger than Project Energy Connect, a 900km high voltage line connecting South Australia

00:14to New South Wales.

00:15We've been able to deliver some previous projects which has probably put us in a good

00:20spot.

00:21The project was originally supposed to cost $1.5 billion and be finished by about 2023,

00:27paving the way for more renewable energy and enabling more electricity to be traded between

00:32New South Wales and South Australia.

00:33There's that famous saying, there's no transition without transmission.

00:39You've got to be able to deliver the energy to where it's being consumed.

00:43But even though South Australia's section was done on time and on budget, over the border

00:47it's a different story.

00:49In New South Wales, the project is now not expected to be finished until later next year, while

00:54its share of the costs has doubled amid supply disruptions, labour shortages and construction

00:59woes.

01:00It's an extension cord to nowhere right now.

01:02The South Australian Government says it's having to negotiate an extension to a gas-fired

01:07power plant to deal with the delays.

01:09It's really concerning me a great deal.

01:11The thing about these transitions is everyone always closes on time, but the new infrastructure

01:17is never ready on time.

01:18New South Wales firm Transgrid maintains Project Energy Connect is critical to the nation and

01:23will be complete next year.

01:26But others worry it's become a poor advertisement for transmission projects.

01:30More pointedly, they fear it'll cost consumers dearly because network costs are recovered in

01:35full through people's bills.

01:38It's a big problem.

01:39It's a very, very big problem.

01:41South Australian transmission company ElectroNet acknowledges there are difficulties.

01:46We will all be competing for the same resource, same equipment.

01:52So yes, it's going to be a bit of a challenge.

01:54Connecting the dots in a troubled transition.

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