AER Backs ElectraNet’s Push to Power Up South Australia’s Renewable Future

In a significant move for South Australia’s clean energy future, the Australian Energy Regulator (AER) has greenlit ElectraNet’s $45.7 million Stage 1a early works for expanding the state’s Mid North Renewable Energy Zone (REZ). This green light is a key step toward bringing more renewable energy online and delivering it to Adelaide and surrounding industrial regions.

The Australian Energy Market Operator (AEMO) had already identified this project as “actionable” in its 2024 Integrated System Plan (ISP). Following detailed consultation, the AER agreed that the proposed capital investment is both prudent and efficient and confirmed that all necessary conditions had been met for ElectraNet to move forward.

The Mid North REZ expansion will see the construction of new 275kV and 132kV transmission lines to connect renewable generation hubs to growing demand centres. This includes linking clean energy sources to Adelaide and meeting rising electricity demand from new industries in the north. The target launch date for this expanded infrastructure is July 2029.

The AER's decision means the approved early works costs will be added to ElectraNet’s revenue for the 2023–28 period. While this will slightly increase electricity bills for South Australian households—about $0.56 a year starting in 2026–27—it sets the stage for long-term energy stability and access to cleaner power.

ElectraNet says the early works will enable the company to:

Begin community and Traditional Owner engagement

Start the process of acquiring land easements

Advance project planning for future stages to keep costs low

These steps are vital to staying on track for the 2029 delivery target.

As required under the Regulatory Investment Test for Transmission (RIT-T), ElectraNet will release a detailed Project Assessment Draft Report (PADR) by December 2025. This report will outline the best options for moving forward. If everything proceeds as expected, the utility will then seek approval for Stage 1b—the next phase of early works—before submitting its major Stage 2 proposal.

ElectraNet welcomed the AER’s decision, saying it gives them the confidence to move ahead. “This decision supports our efforts to engage with the community and design a smart, efficient solution that benefits both customers and the broader region,” the company said in a statement.

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