NSW Govt gives the green light to $4.8bn HumeLink transmission project

The $4.8 billion HumeLink transmission project in New South Wales is now a step closer to construction after the State Government grants planning approval, enabling the nation-critical development to proceed to the Commonwealth Government for final approval. 

The project was carefully assessed by the Department of Planning, Housing and Infrastructure (DPHI), with advice from the relevant agencies, to ensure project developer Transgrid responded to the range of issues raised in public submissions. 

“We welcome the determination by the NSW Minister for Planning and Public Spaces. This is a significant milestone and we now await the Commonwealth environmental approval before Transgrid’s Board considers its Final Investment Decision (FID). 

‘HumeLink represent a key component of the National Electricity Market (NEM) which supplies energy to millions of Australians. By reinforcing the southern grid, the project will connect at Wagga Wagga with EnergyConnect and form the energy superhighway needed to help bring cheaper, cleaner renewable energy online from south-west NSW. 

“This reshaping of the NEM will benefit electricity consumers by providing a secure, sustainable and more affordable supply, which is expected to put downward pressure on bills in the long term,” Transgrid CEO Brett Redman said. 

The conditions of approval include: 

• Visual Impact – the proponent is required to work with specific landowners to implement appropriate visual impact mitigation measures, such as landscaping or vegetation screening 

• Biodiversity 

• • DPHI has included strict conditions to limit impacts on biodiversity and to minimise clearing as part of the project’s detailed design. They must also develop a Biodiversity Management Plan prior to carrying out any development 

• • The proponent is required to offset the biodiversity impacts of the project and must develop a Biodiversity Offset Package in consultation with the Biodiversity, Conservation and Science Directorate and the Biodiversity Conservation Trust prior to carrying out any development that could impact biodiversity values. In addition, the proponent is required to provide a $502.3 million bank guarantee as a security to make sure offsets are implemented 

• Transport – the proponent is required to undertake all necessary roa dupgrades to the satisfaction of the relevant road authority. It will be required to monitor the impact to local roads throughout construction, repair any damage resulting from construction traffic, and prepare a traffic management plan 

• Rehabilitation – the proponent is required to progressively rehabilitate the project, including removing construction infrastructure, facilitate regeneration and restoring rural land capability 

• Bushfire – the proponent is required to comply with the Rural Fire Service Planning for Bushfire Protection 2019 and relevant Australian Standards and must also prepare an emergency plan 

• Hours of operation – standard construction hours will apply to the project, with set exceptions for specific activities. The proponent is required to develop a protocol for out of hours work 

• Noise – the proponent is required to implement noise mitigation measures during construction and prepare a noise management plan. This plan may include the timing of activities, use of equipment and consultation with impacted residents before undertaking louder work. The proponent is also required to verify any operational noise 

• Undergrounding – following two parliamentary inquiries into the feasibility of undergrounding transmission infrastructure for renewable energy project, it was found that undergrounding would be significantly more expensive than what current regulatory frameworks allow for consumers to pay in transmission project costs. As a result, the project has been designed to reduce potential impacts as much as possible. This will be achieved by locating the majority of the new transmission lines within the existing transmission line corridors 

HumeLink project map (source: Transgrid)

Subject to Commonwealth Government approval and final investment decision, detailed design as well as investigations, procurement and mobilisation is scheduled to begin late this year, with main construction works on HumeLink expected to commence in early 2025 and be completed in 2027. 

HumeLink will deliver a new 365-kilometre 500kV transmission line, built in two sections, to connect Wagga Wagga, Bannaby and Maragle. The multi-billion-dollar project will also deliver new or upgraded infrastructure at four locations across its corridor. 

Not only will this project directly support the delivery of more clean and affordable energy to homes and businesses, but it will also provide a significant boost to regional New South Wales through the creation of 1,600 construction jobs and the potential to drive $6.3 billion of direct and indirect investment into the regional economy. 

Once HumeLink is connected to the network, it will unlock the Snowy Hydro Scheme expansion – also known as Snowy 2.0 – and provide an additional 2,200 megawatts of on-demand energy into the grid. 

This transmission infrastructure project is critical to the State’s Energy Plan which aims to deliver cleaner, more affordable energy to the grid while generating thousands of jobs and boosting regional economies. 

“This Critical State Significant Infrastructure project will enable more renewable energy generation to enter the market supporting NSW’s emissions reduction targets. 

“HumeLink is an important investment in NSW’s energy capability, increasing the amount of renewable energy that can be delivered to consumers and helping the state move towards a net zero future. 

“Together we’re building an energy system which will help keep the lights on, put downward pressure on energy bills and reduce emissions while creating jobs,” Minister for Planning and Public Spaces Paul Scully said. 

In late 2023, Transgrid awarded $2.9 billion worth of construction contracts to two delivery partners. The two joint ventures are: 

• Acciona and GenusPlus Group Pty Ltd for HumeLink East 

• CIMIC Group companies UGL and CPB Contractors for HumeLink West 

HumeLink East will involve expanding the existing Bannaby 500kV substation as well as the design and construction of a new 500kV double circuit transmission line that will connect the Bannby substation at the Wondalga interface point with HumeLink West. 

HumeLink West, on the other hand, will involve expanding the Wagga Wagga 500kV substation alongside the design and construction of a new substation at Gugaa and connection works to the future Maragle 500kV substation. This section of the project will also include the delivery of a new 500kV double circuit transmission line to connect the substation at the Wondalga interface point with HumeLink East. 

Available work packages for HumeLink can be found on the HumeLink East and HumeLink West Industry Capability Network (ICN) pages.

In August 2024, the Australian Energy Regulator (AER) approved $4.57 billion in funding for HumeLink. 

Source: NSW Government – Media Releases; Transgrid (1, 2); Infrastructure Magazine