Walcha Energy plans transmission link for 4.5 GW renewable energy hub in New South Wales

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Walcha Energy, a partnership between MirusWind and Energy Estate, intends to build a private transmission line to connect more than 4,500 MW of new renewable energy into the shared transmission system, most likely at the existing Liddell power station site in New South Wales.

 Electricity networks in the NEM are regulated by the AER using revenue cap regulation where consumers bear the risk that the asset will not be utilized over its asset life, meaning consumers bear stranded asset risk. A merchant asset such as Walcha Link will not be regulated meaning the asset owners need to recover their costs from the generators who connect to the asset and bear stranded asset risk. These generators in turn take the risk of recovery of their generation and network costs from their actions in the wholesale energy market. Consumers do not directly pay for networks and do not have any stranded asset risk. We think this will lead to more competitive and efficient outcomes for consumers.

Energy Users Association of Australia (EUAA) welcomes the plan that has "the potential to be a game-changer in the transition to zero emissions, and a more competitive national energy market".

The EUAA is the peak national body representing major Australian electricity and gas users. Membership covers a broad cross-section of the Australian economy including significant retail, mining, manufacturing, healthcare, raw materials, and food processing industries producing many essential items used by the Australian community every day. 

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