Transgrid has announced its two partners to deliver the proposed nation-critical transmission project HumeLink, which will help secure energy supply for millions of Australians as ageing coal-fired power stations are retired.
CEO Brett Redman said: “HumeLink is a vital link in the National Electricity Market, which will reinforce and support the critical southern network of NSW and Victoria. A secure national electricity grid is dependent on the acceleration of major transmission projects needed to realise the Federal and NSW governments’ vision for Australia’s clean energy future.”
Subject to the Australian Energy Regulator’s revenue determination and completion of finance arrangements, the delivery of HumeLink will involve the construction of a 385km route in two sections (east and west), including new transmission lines and new or upgraded infrastructure at four substation locations.
Transgrid has awarded $2.9 billion in contracts to two reputable Tier 1 delivery partners with strong experience in delivering infrastructure projects in regional NSW:
- HumeLink East: ACCIONA and GenusPlus Group Ltd (JV); and
- HumeLink West: UGL and CPB Contractors (JV).
The contracts are structured in two stages, with early works to begin immediately and finish in mid-2024, including detailed design, investigations, procurement and project mobilisation. The second stage of the delivery partner contracts will include the main construction works and commence after all project approvals and the final investment decision are made, which is expected to occur in mid-2024.
“HumeLink will provide substantial opportunities for jobs and suppliers at regional and national level. It represents a once-in-a-generation investment in the nation’s energy future and is expected to deliver more than $500 million in net benefits for Australians,” said Mr Redman.
“We have consulted widely with participants in the domestic and international construction markets to ensure the achievement of long-term sustainable outcomes to benefit electricity consumers and support jobs, training and investment in communities in regional and rural NSW.”
Transgrid also acknowledges the sensitivities of communities and landowners given the scale of this project and have therefore been rigorous to ensure that:
- We have undertaken significant community, stakeholder and consumer representative engagement and selected the most beneficial route that appropriately balances cost, environmental impacts and amenity impacts for local communities;
- Every practicable opportunity has been considered to reduce the cost to consumers, including embedding innovation in the design and technical solutions to deliver the most cost-efficient outcome, locking in long-lead equipment on a program basis to reduce cost and time and engaging reputable delivery partners via a competitive process; and
- Our contracting model aligns our objectives with those of our delivery partners and consumers, with in-built incentives to deliver the HumeLink project at the lowest cost.
CIMIC Group Executive Chairman Juan Santamaria said: “We are pleased to be chosen to deliver the initial works for the western section of HumeLink. The project will increase the amount of renewable energy that can be delivered across the national electricity grid, delivering reliable and sustainable power. It will also support economic growth and local jobs and skills.”
UGL Managing Director Doug Moss said: “UGL is a leader in the design, construction, commissioning, and operation of high voltage energy assets, having installed more than 6,000km of transmission lines and more than 200 substations across Australia. We’re pleased to continue our longstanding relationship with Transgrid and bring our decades of experience to the delivery of this nationally significant project.”
CPB Contractors Managing Director Jason Spears said: “As a leader in major infrastructure construction, we bring extensive regional delivery experience to this important project and, as our team work collaboratively with local businesses and communities to maximise the economic benefits this project brings, we’ll also be working with local partners to ensure a positive skills legacy is achieved for the area.”
CEO of ACCIONA Australia and New Zealand Bede Noonan, said: “ACCIONA has been delivering complex and sustainable projects to enhance the lives of Australians for over 100 years. And we are delighted we are continuing to do so with a project that will not only expand the capacity of the electricity network in southern NSW, bringing greater reliability and affordability for households but also bolster the integration of renewable energy into the grid.”
GenusPlus Group Managing Director David Riches welcomed the opportunity to play an important role in this nation-building project.
“We are delighted to be selected to deliver HumeLink East alongside our joint venture partner. Together we will support Transgrid as Genus continues to grow its national footprint,” Mr Riches said.
“We very much value the relationship we have forged with Transgrid and look forward to building on this into the future.”
Construction is well underway on EnergyConnect, which will facilitate the connection of new renewables in the state’s southwest and support energy sharing with South Australia and Victoria. Community consultation and planning are continuing on VNI West, another significant interconnector, which will support greater sharing with Victoria and connect with EnergyConnect at Gugaa, near Wagga Wagga.
“Transgrid and its delivery partners will continue to engage with landowners, communities and stakeholders on HumeLink and VNI West and invest in local regions to enhance job, education and training opportunities and help boost local economies,” said Mr Redman.
Image source: Courtesy of Transgrid
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