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Hon Dan van Holst Pellekaan MP,
Minister for Energy and Mining


An interconnector to carry electricity between South Australia and New South Wales is a step closer after the signing of a Memorandum of Understanding (MOU) by both state governments in Adelaide.

“The MOU is another significant step in the process of establishing an interconnector that will lower electricity prices in both states and improve reliability across the National Electricity Market,” said Minister for Energy and Mining Dan van Holst Pellekaan.

“An interconnector between South Australia and New South Wales is a nation-building project that will allow both states to export their excess energy to one another to help bring down prices and improve the security of our systems.

“The MOU establishes the framework for co-operation between the governments and commits both to a robust and efficient process for the project. It will help deliver benefits faster to consumers.”

New South Wales Minister for Energy & Utilities Don Harwin said the project will be good for both states.

“The NSW Transmission Infrastructure Strategy supports this project as an important step in unlocking capacity by developing an energy zone in the South-West region of NSW,” Minister Harwin said.

“The project will improve NSW energy security and management of peak demand events, by unlocking an additional 750 megawatts of low-cost energy which can be accessed at any time of the day or night.”

Reports by ElectraNet and the Australian Energy Market Operator have strongly endorsed interconnection between South Australia and New South Wales, putting the annual savings to households at $30 per annum in South Australia.

The Marshall Liberal Government has committed to kick starting this vital infrastructure project by the

  • early commencement of detailed line route and site selection works;
  • co-ordinated planning approvals across the nation;
  • early commencement of environmental and social studies required for planning approval;
  • commencing a community engagement strategy including landowner consultation about easement acquisition.

“The Marshall Government proposed an interconnector between South Australia and New South Wales as part of our comprehensive energy policy that was endorsed by South Australian voters at the March state election,” said Minster Dan van Holst Pellekaan.

“The NSW Transmission Strategy supported it too, with New South Wales seeing the interconnector as critical to develop a renewable energy zone in the state’s South West.

“An interconnector to New South Wales closes the loop on South Australia’s connection to the nation, bringing cheaper power and greater export opportunities for our renewable energy. It will also directly connect our renewable energy resources with storage at a future Snowy 2.0.

“South Australia currently only has interconnection with Victoria which puts us at the end of the line and vulnerable to the type system risks that have hurt South Australia’s reputation.”

Download the media release

Wednesday 19 December 2018