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AAP
AAP
Business
Tim Dornin

Work starts on new SA-NSW power line

A 900-kilometre energy connection between SA and NSW will enhance power security and cut bills. (AAP)

Major construction has begun on South Australia's electricity interconnector with New South Wales, the 900-kilometre line designed to enhance power security and cut bills.

ElectraNet interim Chief Executive Rainer Korte said construction of the first transmission towers at Robertstown, north of Adelaide, was a significant milestone in the project.

"Project EnergyConnect will help improve the affordability, reliability and security of electricity supply for South Australians and strengthen the National Electricity Market," Mr Korte said.

"Once completed and energised, it will deliver an expected annual bill saving of around $100 for a typical South Australian residential power customer."

The $2.3 billion project includes 206 kilometres of new transmission line in SA along with a new substation at Bundey and upgrades to the existing Robertstown and Tungkillo substations.

In NSW, the line will run through Buronga and Wagga, providing a direct energy connection between the two states for the first time.

Construction work in SA is expected to take two years, using 15,000 cubic metres of concrete and 11,500 tonnes of steel, creating 200 jobs.

Premier Steven Marshall said the interconnector would allow renewable energy generated in SA to be exported to NSW, reducing electricity prices and fuelling economic growth in both states.

"Importantly, it will strengthen the power grid, so we can securely add more renewable energy," he said.

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