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Wednesday 14

November, 201810:25 PM



Interconnector points to power price cuts

Interconnector points to power price cuts

A report by electricity transmission company ElectraNet says a new electricity interconnector between SA and NSW would cut power bills.

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By AAP 29.06.2018 05:14 PM

A $1.5 billion electricity interconnector between South Australia and New South Wales would deliver substantial economic benefits and cut power bills in both states, a new report has found.

The report from transmission company ElectraNet said residential customers in SA could expect a $30 annual saving and those in NSW about $20.

It said the preferred option, an interconnector linking mid-north SA and Wagga Wagga in NSW, would deliver net market benefits of around $1 billion over 21 years.

That would include fuel cost savings of around $100 million a year on the wholesale market, putting downward pressure on prices.

Electranet said the interconnector could be delivered as early as 2022.

SA Energy and Mining Minister Dan van Holst Pellekaan said the assessment validated a key part of the Liberal government's energy plan.

"An interconnector to New South Wales will strengthen South Australia's electricity network delivering greater reliability and cheaper prices," the minister said.

"Access to additional electricity if we need it plus the opportunity to export our often overabundant renewable energy will deliver lower prices and more security for all South Australians."

But the state opposition said the savings to consumers were modest and the interconnector would shut down power plants in SA.

Energy spokesman Tom Koutsantonis said ElectraNet had found an interconnector would displace South Australia's conventional gas generators and replace them with coal-fired power from the east coast.

"South Australia must strive for self-sufficiency when it comes to energy generation," he said.

"We know the east coast states will always put themselves first and South Australia last, so why would we want to shut down power plants in South Australia and replace them with power from the east coast?"

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