Skip to main content

Australia concludes US$1.4bn deal for energy projects in New South Wales

The Australian government has concluded a AUD2bn (US$1.4bn) joint funding agreement with the state of New South Wales (NSW) to develop two interstate power transmission lines (the HumeLink interconnection line from Snowy Hydro to southern NSW, and the Queensland-NSW interconnector project), upgrade parts of the power network on the east coast, and support CO2 emission reduction projects. The 5-year agreement is expected to stabilise the NSW power grid, reduce electricity prices and foster wind, solar and hydropower projects. In addition, the NSW government committed to supply an additional 70 PJ/year of gas to the east coast market, from Santos' proposed Narrabri coal seam gas field, which is awaiting approval from the Independent Planning Commission, or from one or two LNG import terminal projects.

Australia is currently facing tense power supply conditions, after one of the two power transmission lines between Victoria and South Australia tripped, reducing electricity exchanges between the two states. The Australian Energy Market Operator had to tap emergency power reserves and to dispatch reserve power, while calling on large electricity consumers to reduce their consumption to avoid blackouts. Wholesale electricity prices have surged to the market cap of AUD14,700/MWh (US$9,840/MWh) in Victoria and reached AUD13,000/MWh (US$8,700/MWh) in New South Wales, before falling to AUD100/MWh (US$67/MWh) in Victoria and AUD90/MWh (US$60/MWh) in NSW.

Global energy reports

Interested in Global Energy Research?

Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.

This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.

Request a free trial Contact us