Build it and They Will Come: Transmission as the Backbone of Renewable Energy, Despite Challenges

As Vic Selvaraja from Rio Tinto highlighted at the recent Powerlink transmission forum, "Build it and they will come; don’t build it, and they won’t." Transmission is the cornerstone of decarbonizing the grid, a reality proven since 2017 during the ERCOT grid expansion in Texas. While governments are now pushing forward, delays in action have made the process more expensive due to rising interest rates and political resistance from coal-supportive factions.

Transmission projects do more than connect renewable energy to grids—they set the stage for community engagement. Queensland stands out by using third-party annual surveys to gauge and track community attitudes. The data reveals polarizing views and the significance of cost-of-living concerns.

Other states like New South Wales and Victoria should adopt similar surveys to better understand and address public concerns. Merely counting meetings and consultations is insufficient; actionable social science data is key to meaningful engagement and progress.

Powerlink’s strategic adjustments, such as rerouting the Southern to Central Queensland link inland, saved 300 km of transmission while easing easement challenges. Additionally, they secured cost reductions in 275kV circuit breakers, with prices dropping back to near-original levels after years of sharp increases.

These successes demonstrate how proactive management and collaboration with suppliers can drive efficiency and lower project costs.

Project delays caused by lengthy approvals, such as Environmental Protection and Biodiversity Conservation (EPBC) assessments, significantly inflate costs. For every additional year of delay, projects face rising capital and interest costs. Governments must streamline approval timelines without cutting corners, as demonstrated by the Independent Planning Commission (IPC) in NSW, which adheres to its six-month statutory deadlines.

Communities demand tangible benefits from renewable energy projects. Initiatives like discounted electricity prices for residents near renewable energy zones, as seen in NSW’s South West Renewable Energy Zone (REZ), foster community support. Funding for such programs can be sourced from a mix of transmission owners, state governments, and renewable project developers.

• New South Wales (NSW):Projects like HumeLink and Energy Connect remain undersized, while funding and commitment for Sydney Ring connections lag. Stronger interconnections between NSW and Queensland could unlock 8GW of power, utilizing Queensland’s winter wind resources and renewable energy potential.

• Queensland (QLD):With exemplary leadership in transmission planning, QLD is advancing REZs in Far North Queensland, Southern Downs, and Western Downs. Gladstone, a key industrial zone, faces challenges in integrating additional renewable energy capacity and modernizing aging power stations.

• Victoria:Offshore wind planning aims to integrate 9GW of power by 2032, though timelines may face delays. The Western Renewables Link and the VNI West interconnector remain in various stages of approval and development.

Transmission infrastructure is not only essential for renewable energy integration but also for meeting net-zero targets and delivering economic benefits. Governments and energy companies must prioritize efficiency, community engagement, and proactive planning to overcome political and financial obstacles.

At EServices4U, we understand the challenges of transitioning to renewable energy. Our expertise spans energy-saving consultancy, infrastructure planning, and project execution. Partner with us to navigate the complexities of energy innovation while achieving sustainability goals. Visit www.eservices4u.com.au for tailored solutions.