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Project EnergyConnect commissions its second South Australia–NSW circuit and begins capacity testing

Project EnergyConnect commissions its second South Australia–NSW circuit and begins capacity testing

Built World

Three 330 kV lines went into service in western New South Wales, starting a staged climb from 350 MW toward 800 MW

Today: Three 330 kV lines commissioned

Overview

Updated 1 hour ago

At 12:30 pm on 4 November 2026, the Australian Energy Market Operator put three 330-kilovolt lines into service in western New South Wales. The Bunday–Buronga line and the two Buronga–Dinawan lines are the second circuit of Project EnergyConnect, the 900-kilometre link between South Australia and New South Wales. Their commissioning started the inter-network testing program that governs how fast the link's capacity grows.

Until now the interconnector was a single radial line. The new circuit closes it into a loop that also touches Victoria, so power can reach a region by more than one path. AEMO has already raised the transfer limit from 150 megawatts to 350 megawatts. Further increases depend on the grid proving, under real market flows, that it can hold them.

Why it matters

Up to 800 megawatts will soon move between South Australia and New South Wales, changing wholesale prices and reliability across the eastern grid.

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Key Indicators

800 MW
Stage 2 bidirectional capacity
The maximum transfer the completed interconnector is designed to release, subject to testing.
350 MW
Current transfer limit
Raised from 150 MW when market systems changed on 1 November 2026.
900 km
Total interconnector length
Runs from Robertstown in South Australia to Wagga Wagga in New South Wales.
6
Testing hold points
Three capacity levels in each direction: 350 MW, 550 MW and 800 MW.
150 MW
Stage 1 capacity released
The single-circuit limit in place from April 2025 until November 2026.

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Organizations Involved

Australian Energy Market Operator (AEMO)
Australian Energy Market Operator (AEMO)
Market and system operator
Runs the inter-network testing program and releases capacity

Operates Australia's national electricity market and the physical power system.
Transgrid
Transgrid
Transmission network owner
Built and owns the New South Wales section

Owns and operates the high-voltage network in New South Wales and the Australian Capital Territory.
ElectraNet
ElectraNet
Transmission network owner
Owns the South Australian section

Owns the high-voltage transmission network in South Australia.
AE
Australian Energy Market Commission (AEMC)
Rule maker
Set the settlement rules for transmission loops

Makes and amends the rules governing Australia's electricity and gas markets.

Timeline

November 2024 November 2026

8 events Latest: Today
Tap a bar to jump to that date

  1. Three 330 kV lines commissioned

    Today Commissioning

    AEMO put Bunday–Buronga 6C and Buronga–Dinawan 6G and 6H into service, starting SA–NSW testing.

  2. 350 MW limits appear in forecasts

    Market data

    Constraint equations showed 350 MW export and import limits for the next morning.

  3. Market systems switch over

    Rule commencement

    New loop settlement arrangements took effect and the transfer limit rose to 350 megawatts.

  4. Progressive operation begins

    Operations

    AEMO started bringing Stage 2 into service as testing conditions allowed.

  5. Draft test program published

    Consultation

    AEMO opened consultation on six hold points up to 800 megawatts in each direction.

  6. Loop settlement rule finalised

    Rule change

    The AEMC made a final rule to net off settlement residue in transmission loops.

  7. 150 MW released to the market

    Capacity release

    The single-circuit interconnector began carrying up to 150 megawatts in either direction.

  8. First circuit energised

    Construction

    EnergyConnect Stage 1 connected Robertstown in South Australia to Buronga in New South Wales.

Scenarios

1

Capacity reaches 800 MW in both directions before the end of 2027

Likely Resolves by End of 2027

Discussed by: AEMO and the project proponents, in the Stage 2 inter-network test program

Testing moves through the six hold points at 350, 550 and 800 megawatts in each direction. Each step requires a period of real market flow that stresses the new circuit and shows damping and transfer limits hold. If the tests pass, AEMO releases the full capacity and the interconnector operates as designed.

2

Testing stalls at 350 MW because the market never delivers the needed flows

Possible Resolves by Q2 2027

Discussed by: AEMO, which noted in its consultation document that no test facilitation services were procured

The program relies on normal dispatch, not on paid test services, to create the power flows each hold point needs. If wind, demand and prices do not line up, a hold point can sit untested for months. The capacity then stays where it is, and the grid gets less benefit from the new circuit than planned.

3

A system event during testing forces AEMO to cut capacity back

Unlikely Resolves by Q2 2027

Discussed by: AEMO, whose test program lists interconnector drift and unmodelled phenomena as risks

Higher transfers can expose oscillation damping problems or cause the interconnector to drift from its target flow. The test program includes line-switching tests and continuous monitoring for exactly this reason. If something unexpected shows up, AEMO can pull capacity back below the current level while it investigates.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

November 2024 – April 2025

EnergyConnect Stage 1 commissioning (2024–2025)

The first circuit between Robertstown and Buronga was energised in November 2024. AEMO then released 150 megawatts of capacity in April 2025, after testing showed the single line could be used without threatening system security.

Then

South Australia and New South Wales gained a direct link for the first time, limited to 150 megawatts.

Now

The staged release set the template now being repeated at larger scale: capacity follows proof, not the construction schedule.

Why this matters now

Stage 2 is the same process at five times the capacity, with the added complication of a loop rather than a single line.

September 2025

Transmission loop settlement rule (2025)

The Australian Energy Market Commission made a final rule to net off inter-regional settlement residue across a transmission loop. The change was needed because a three-region loop creates residue that the old region-by-region method could not allocate cleanly.

Then

AEMO rewrote its price scaling and residue management systems ahead of the November 2026 switchover.

Now

The rule took effect alongside the new circuit, so the market machinery was in place before the physical loop closed.

Why this matters now

It shows the market design had to change before the wires could carry more power, and that the two are now running in parallel.

Sources

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WattClarity AEMO Transgrid WattClarity AEMO AEMO