The Queensland-NSW Interconnector (QNI) upgrade project is on track for completion by May 2022 says Transgrid.
Transgrid is the manager and operator of the high voltage electricity transmission network in New South Wales and the ACT. Electricity is carried from generators through 13,000 kilometres of Transgrid’s high voltage transmission lines and underground cable network to substations, where it is converted to low voltage electricity and then delivered by Distribution Network Service Providers (DNSPs) to millions of homes and businesses.
What Is The Queensland-NSW Interconnector?
The QNI is a 330 kV AC interconnection between the two states that was commissioned in 2001 and is operated by TransGrid and Powerlink Queensland. The QNI had a nominal transfer capacity of 310 MW from NSW to Queensland and 1,025 MW from Queensland to NSW prior to this project.
Why The Upgrade?
The link is being upgraded to enable the sharing of more electricity between the two states. It will enhance grid stability and allow more lower-cost generation (such as renewables provides) to be shared between the two markets; putting downward pressure on electricity prices. The upgrades will also support the development of more renewable energy projects.
Transgrid says the QNI Upgrade will enable an additional 460 MW of power to be transferred into Queensland and 190 MW more into New South Wales.
The $230 million project involved upgrading 300 kilometres of existing transmission lines and replacing 58 towers between the soon-to-be-closed coal-fired clunker Liddell power station, and Transgrid’s Muswellbrook and Tamworth substations. A bunch of existing towers have also been up-rated to accommodate higher power transfers.
It was determined the project would enable continued reliable electricity supply at the lowest cost by deferring the need to build new generation and storage capacity in New South Wales ahead of Liddell Power Station’s closure.
QNI Jobs
Tamworth is the largest of five substations upgraded, with Static VAR Compensators (SVCs) also added to help manage reactive power flows that accompany introduction of renewable energy to the grid.
The Tamworth aspect of the project has provided a welcome jobs boost for that region.
“Our community has been benefiting from this project throughout the pandemic,” said Member for Tamworth, Kevin Anderson. “Since mid-2020, QNI has created 170 local jobs and local suppliers have been engaged in the construction, accommodation, fencing, safety, hygiene and hospitality sectors, to name a few.”
Transgrid says a total of 280 jobs will have been created during construction.
7-Year Payback Expected
The NSW Government and the Federal Government provided $102 million of joint-underwriting to support and accelerate the project, which is expected to generate sufficient benefits to recover capital costs within seven years after commissioning.
Transgrid states the project is now 90% complete, and when completed it will be handed over to AEMO for rigorous inter-regional testing.
“Transgrid will continue working proactively with the local landowners, the community and the NSW Government in supporting the transition of the sector to renewable energy,” said Executive Manager of Delivery Craig Stallan.
You can learn more about the Queensland-NSW Interconnector upgrade project here.
About Michael Bloch
RSS - Posts
The seven year payback is very good given the low rates governments can currently borrow at. Generally speaking Australia has been under provisioned with long distance transmission capacity and a lot of savings forgone as a result. Of course, with the cost of storage and renewables falling fast, it will affect the value of long distance transmission. But maybe not too much within 7 years.