Distribution the key to a faster and fairer energy transition

14 August 2024

Australia’s clean energy revolution can be faster and fairer by taking advantage of existing electricity distribution poles and wires to connect new renewable energy projects.

Speaking at the Regional Australia Institute National Summit in Canberra today, Essential Energy’s Chief Executive Officer, John Cleland said more than 8 gigawatts of renewable energy generation could connect right now to nearly 10,000 kilometres of existing network across regional NSW.

“We have the capacity on Essential Energy’s existing distribution network to connect new renewable generation projects to the grid today, well in advance of new transmission lines being developed” John explained.

“The size of Essential Energy’s grid-ready connection capacity is similar to the size of the biggest renewable energy zone proposed for NSW. This is a major opportunity to progress renewables projects quickly and at scale.”

John said distribution networks like Essential Energy being fully utilised in the transition will involve minimal disruption to communities and landholders through the use of existing easements and rights of way. He also stated that it should also lower the costs of energy for regional customers who will have the renewable generation projects built in their backyards.

“We can deliver the clean energy transition faster and fairer by being more innovative with the infrastructure that’s already built,” John said.

“Using existing distribution infrastructure helps gain the momentum in the transition with the larger transmission infrastructure taking longer to bring online. It enables NSW residents in regional and rural areas to benefit from the clean energy transition, through economic development and more efficient use of the network.”

Around 1.5 gigawatts of utility-scale renewable projects have already been connected to Essential Energy’s network, with another 2.5 gigawatts in the development pipeline.

“This approach can help bring new generation to market sooner, building confidence in the energy transition, and help Australia meet its renewable energy and emissions reductions targets. To take advantage of this opportunity, we need changes to the way renewable projects are funded and approved.”

Essential Energy has been actively engaging with EnergyCo, AEMO Services and the NSW Department of Energy and Treasury to advocate for the full utilisation of the distribution network in the energy transition roadmap. More details about Essential Energy’s network hosting capacity can be found in the Future-proofing Energy for Regional NSW: Unlocking Essential Energy’s Sub-Transmission Thermal Capacity report.

John Cleland speaking at the RAI National Summit

John Cleland delivering a keynote address at the Regional Australia Institute National Summit 2024 in Canberra

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