Scott Morrison unveils $102million plan to prevent blackouts and ensure power bills are low – but it will only save you TWO DOLLARS per year
- Scott Morrison has announced plans to upgrade Australia’s power system
- TransGrid will upgrade the link between Queensland and New South Wales
- The aim is to generate an extra 190 megawatts of capacity at peak times
The Federal Government has backed plans to upgrade the power system to make sure Australians can access affordable electricity and prevent blackouts.
Network operator TransGrid will upgrade the transmission link between Queensland and New South Wales so an extra 190 megawatts can flow south at peak times.
The project, underwritten jointly by the NSW and Federal Governments to the tune of $102million, aims to shore up the electricity supply in New South Wales as the Liddell coal-fired power station in the Hunter Valley shuts down in 2023.
New South Wales power bills may decrease by around $1 or $2 per year per household as a result of the upgrade, according to Guy Dundaf, energy fellow at the Gratton Institute.
Network operator TransGrid will upgrade to the transmission link between Queensland and New South Wales. Pictured: Liddell Power Station in Muswellbrook, New South Wales
Mr Morrison announced the federal government’s involvement on Monday.
‘This is about putting downward pressure on wholesale prices to make sure businesses and households have access to reliable and affordable power,’ he said.
‘Industry needs certainty. They need to know their electricity won’t cut out, and their power bill won’t suddenly double.’
‘That’s why we are underwriting this interconnector. It’s a practical step to make sure it happens, and it happens quickly.’
Federal Energy Minister Angus Taylor said the project will lead to ‘greater competition between generators in the electricity market, helping to reduce wholesale prices’.
This is a small project but a good project
He added: ‘This is great news for the energy-intensive industries, and the jobs and regional economies that rely on them.’
Experts have supported the move, including Mr Dundaf of the Gratton Institute.
‘This is a small project but a good project,’ he told Daily Mail Australia.
‘According to my analysis, the average household will save about $1 or $2 per year on their annual bills over the 25-year lifetime of the project.’
Brian Fisher, managing director of BAEconomics, told Daily Mail Australia he also backed the project.
‘The fact is that Queensland is a net exporter of power and getting that power to New South Wales and Victoria is important in terms of stabilising the grid,’ he said.
The project, which needs to be signed off by the energy regulator, is due to be completed by 2023.
Mr Morrison (pictured) announced the federal government’s involvement on Monday