Nexa Advisory welcomes the opportunity to share our views and insights as part of the New South Wales Transmission Planning Review (the Review) and the current Options Paper.
We have long advocated for the timely and efficient delivery of transmission infrastructure to support Australia’s clean energy transition and deliver energy security, reliability and affordability for electricity consumers. However, transmission delays across New South Wales and the broader National Electricity Market (NEM) continue to undermine renewable energy targets, investor confidence and consumer outcomes.
While the New South Wales framework has attempted to address the key challenges associated with delivering transmission, we consider the complex governance arrangements has contributed to transmission delays in the state.
Additionally, we consider that opening transmission build to established transmission network organisations that demonstrate resource capability, experience in building the infrastructure and procurement leverage is the most effective pathway to overcome ongoing delays and cost blow-outs. This limits the potential inefficiencies and uncompetitive outcomes associated with delivery by the regulated incumbent Transmission Network Service Providers (TNSP).
We recommend this Review addresses the following key priorities:
- EnergyCo should be formally appointed as the independent Infrastructure Planner and procurer for strategic transmission infrastructure. This independence is critical to separate network planning and delivery functions, reducing conflicts of interest and enabling more coordinated planning (consistent with Options A.2 and 3).
- Contestability should be the default for all RNIPs and PTIPs. Opening transmission projects to competitive procurement is essential to managing delivery risk, accelerating timelines, and aligning incentives across the market. Embedding contestability by default by introducing clear criteria (as proposed under Option A.4) would ensure transparency and predictability in how projects are delivered.
- Standardise network-to-network connections. Implement a formal interface framework between contestable and existing network assets (Option A.5).
- Expand the Network Infrastructure Strategy (NIS). Position the NIS as the central, integrated planning document, combining transmission, distribution, and demand-side considerations and allowing for innovative non-network and market-led solutions such as virtual transmission (Options B.2, D.6 and8).
- Clarify jurisdictional planning frameworks. Introduce clear criteria to distinguish between projects progressing under the EII Act or the NER (Option C.1).
- Reform system strength procurement. Transition strategic system strength and inertia procurement to EnergyCo under a phased model (Options D.1, D.4 and 5).
- Integrate distribution network developments – including CER, non-network and market-led solutions – into the NIS. Integrate emerging loads within planning and enabling network planning information and data sharing (Options D.6 and 8).
- Strengthen community engagement and formalise early, place-based engagement led by EnergyCo. Better incorporate this into planning (instead of Option E.2).
- Support EnergyCo’s resourcing and independence. Enhance governance and resourcing of EnergyCo to enable expanded planning and procurement roles.
Read our submission here: Nexa Advisory – NSW Transmission Planning Review submission Options Paper