The federal and NSW governments are banding together to bring forward an upgrade to the electricity interconnector between NSW and Queensland, to the tune of $102 million.
The governments will evenly split liability of the project, in a bid to ensure reliable power for Australians and in the hope of putting downward pressure on prices.
The project is expected to begin in late 2021 and will allow an additional 190 MW of power to NSW during peak demand.
It coincides with AGL’s planned closure of its ageing Liddell coal-fired power station in 2023, which the federal government has set up a task force to oversee.
Prime Minister Scott Morrison announced the plan alongside NSW Premier Gladys Berejiklian in Sydney on Monday.
“(It) puts value into the system, more power into the system and then the laws of economics do the rest,” he told reporters.
“More supply, more connectivity.”
The upgrade is awaiting final approval.
The project is separate to the federal government’s new generation investments scheme, which aims to increase gas and hydro power supply to the National Electricity Market.
The federal government is also working with Tasmania and Victoria on the proposed Marinus Link to connect power between the two states.
“These are the things we need to do to guarantee the reliability of power supply as well as its affordability,” Mr Morrison said.