Transgrid has fully energised its EnergyConnect transmission project, completing construction on Australia’s largest new network link. The interconnector now connects South Australia, New South Wales, and Victoria, a critical step in creating a more resilient national grid. The project is designed to unlock renewable generation zones and ultimately lower power costs for millions of consumers by improving energy sharing between states.
While EnergyConnect promises long-term structural price relief, the market is already experiencing a significant downturn. NEM spot prices fell 36.2 per cent week-on-week to average $43.21/MWh, driven by mild weather and strong renewable generation, which accounted for 45.7 per cent of the mix. The price drop highlights the immediate impact of favourable conditions on a grid increasingly influenced by variable renewable energy, a dynamic EnergyConnect aims to smooth out over time.
The energisation of major new assets coincides with ongoing regulatory oversight of network costs and revenues. In Victoria, Jemena welcomed the AER's approval of its 2026-31 pricing plan, which it says will support its role in the transition while reducing distribution costs. Meanwhile, AusNet is seeking to recover costs from the January 2026 bushfires through a pass-through application to the AER, demonstrating the financial pressures networks face from climate-related events. Submissions on AusNet’s application are now open.
Regulators are also focused on refining market rules for the future grid. AEMO has opened consultations on its August 2026 Retail Electricity Market Procedures and is seeking feedback on amending trigger thresholds for automated market reviews. These parallel workstreams aim to ensure the NEM’s regulatory architecture keeps pace with the physical transformation being delivered by projects like EnergyConnect.
To support this transformation, Transgrid also announced it has awarded 23 scholarships to engineering students in regional New South Wales. The initiative aims to build a local workforce capable of delivering the state's future clean energy infrastructure, tackling the growing skills shortage that poses a long-term risk to transition project timelines.