Premier Chris Minns has poured cold water on the potential of “undergrounding” the transmission line project that will be built across regional New South Wales to connect renewable energy zones and carry clean energy across the country.
The controversial HumeLink project is vital to the country’s energy transmission, with the Australian Energy Market Operator estimating Australia needs more than 10,000km of new transmission lines and a ninefold increase in large-scale wind and solar energy.
The HumeLink project has faced fierce opposition from affected property owners and communities, with groups arguing overground lines will increase the fire risk, make it harder to farm and create ecological damage.
On Thursday Minns confirmed the government would push forward with plans to construct overland transmission lines.
“It is [off the table],” he said about undergrounding. “And the reason for that is the cost. I mean, we’re already seeing extensive increasing costs for energy prices in NSW.”
Asked if he was taking a “tough-luck” approach to the affected communities, Minns said there was compensation for landholders who were impacted.
“Most estimates indicate that undergrounding those cables is three times the cost of putting them overhead,” he said. “And that’s a cost that will be borne by businesses, households and consumers in NSW. It’s just too much money to pay.”
The premier’s comments followed the release of a parliamentary committee report on the viability of the HumeLink going underground, which recommended the current plan for constructing overhead transmission lines was the best way to complete the project.
But groups opposing the 360km of lines being built overground said the NSW government had chosen to completely ignore the concerns of farmers, ecologists and engineers and vowed to keep fighting the proposal.
They were backed by Nationals MPs and the Greens, who criticised the inquiry as “a missed opportunity” and a box-ticking exercise.
Network operator Transgrid previously told the NSW parliamentary inquiry the cost of running all of the HumeLink underground could more than triple its cost to $17bn.
In the wake of the report, Transgrid said it was “steadfastly committed to engagement with communities” and would continue to work with them to find “solutions to balance the local impacts, consumer costs, time constraints and concerns regarding supply reliability”.
“These critical transmission projects will not only support increased competition in renewable generation and enable the nation to achieve a clean energy future – they are urgently needed to ensure the security of a safe, reliable electricity supply for millions of Australians,” a spokesperson said.
The projected cost of the overland link had already blown out from $3.3bn to nearly $4.9bn.
Community spokesperson Michael Katz accused the government of relying on biased evidence and said landowners would continue to fight the project.
“The Minns government has failed to bring any innovative policy change on this important issue and, instead, has been captured by the vested interests of a private company,” he said.
Katz said the entire inquiry was “predetermined and a complete sham” before questioning the stated cost of undergrounding.
“It is a slap in the face for the hard-working and caring people of these communities who tried in good faith to offer workable alternative solutions which were met with disdain.”
The Greens infrastructure spokesperson and committee member Cate Faehrmann labelled the inquiry recommendation a “missed opportunity”, with the finding only supported by government members.
“It does not reflect the evidence that was presented to the committee, which was overwhelmingly against overhead transmission lines,” she said.
Faehrmann labelled the inquiry a “tick and flick exercise” to make it seem like the government was taking community concerns around transmission line projects seriously.
The Nationals MP Wes Fang said the decision would “break the hearts of those rural and regional landholders”.
“Questions need to be asked around the cost of this inquiry, including charter flights and regional hearings, when the premier indicated on radio a month ago the decision was already made,” Fang said.
“This alone is another example of the Labor party wasting taxpayers’ money.”
Australian Associated Press contributed to this report.
