Priority Transmission Investments

Enabling Queensland’s future energy system  

The Queensland Government released the Queensland Energy and Jobs Plan and the Queensland SuperGrid Infrastructure Blueprint in September 2022. The plan outlines how Queensland’s energy system will transform to deliver clean, reliable and affordable energy.  

The Energy (Renewable Transformation and Jobs) Act 2024 (the Act) was passed in April 2024 and is a key enabler of the transformation, placing the Queensland Renewable Energy Targets into law and establishing new arrangements to deliver major transmission investments in Queensland.   

The Act sets out the process to allow the Queensland Government to identify and assess Priority Transmission Investment projects within a new State-based planning and investment framework, and to direct Powerlink to construct these projects and recover its costs following completion of assessment activities.  

Aspects of the plan are updated periodically to ensure it remains current, this includes the update to the Queensland SuperGrid Infrastructure Blueprint, which identifies eligible Priority Transmission Investments.   

Role of transmission in Queensland’s energy transition and future energy system  

Investment in the transmission network is critical to connect new large-scale renewable energy projects in Queensland.  

Decarbonising Queensland’s energy system means increasing the amount of renewable energy used to meet the energy needs of households and businesses, and reducing our reliance on coal-fired power generation. 

Together, renewable energy, storage (from pumped hydro and batteries) and the transmission network form the foundations of our future energy system in Queensland.

Which projects are eligible Priority Transmission Investment projects? 

The Queensland Energy and Jobs Plan identifies a number of transmission projects as critical to the transformation of Queensland’s energy system. These key transmission projects are identified in the Queensland SuperGrid Infrastructure Blueprint (Blueprint) that accompanies the Queensland Energy and Jobs Plan. 

The Blueprint is updated every two years. The most recent Blueprint was published in September 2022.  

As at June 2024, the following projects have been confirmed as eligible Priority Transmission Investments in the Energy (Renewable Transformation and Jobs) Amendment Regulation 2024.  

• Gladstone project - comprised of works for achieving the purposes of the investment for the Central QREZ region described in the infrastructure blueprint, to reinforce the Gladstone electricity network.
• Stage 1: Borumba connection – to connect the proposed Borumba Pumped Hydro Energy Storage to renewable generation and South East Queensland load centres  
• Stage 2: Central Queensland connection - to connect the South East Queensland and Central Queensland load centres 
• Stage 3: Pioneer-Burdekin PHES and NQ connection - to connect the proposed Pioneer-Burdekin Pumped Hydro Energy Storage to renewable generation and load centres 
• Stage 4: Townsville to Hughenden connection - to connect wind generation resources in the Hughenden area to major load centres and energy storage resources 

What are the steps involved in a Priority Transmission Investment?

The Priority Transmission Investment process consists of four key stages leading up to the commencement of construction: 

Identification

The Responsible Ministers identify a project as an eligible Priority Transmission Investment project.

Assessment

The Responsible Ministers declare the eligible Priority Transmission Investment to be a candidate Priority Transmission Investment, and direct Powerlink to undertake an assessment of the project. The assessment stage comprises two sub-steps, each involving consultation by Powerlink. These sub-steps are the ‘candidate Priority Transmission Investment submission’ and ‘candidate Priority Transmission Investment’ assessment steps. 

Construction

Powerlink builds the transmission infrastructure. 

Review

The Responsible Ministers review any additional expenditure for efficiency (and direct Powerlink how to recover any efficient additional expenditure).

Importantly, the process also requires the Responsible Ministers to seek advice from a ‘suitably qualified person’, for example the Australian Energy Regulator (AER), regarding whether Powerlink’s:

• submission about the assessment approach meets the requirements of the Act;
• assessment of the candidate Priority Transmission Investment accords with Responsible Ministers’ stated requirements; and 
• proposed or incurred expenditure on the investment would be required by an efficient and prudent operator.

The process is intended to emulate the Regulatory Investment Test for Transmission (RIT-T), included in the National Electricity Rules (NER) and supporting documentation, as appropriately and closely as practicable.

Powerlink consultation opportunities

Powerlink undertakes two public consultations as part of the Assessment Stage of the Priority Transmission Investment framework:

• Consultation on the submission document
• Consultation on the assessment document

The timeframes for the Priority Transmission Investment, including consultation timeframes, are set by the Responsible Ministers when directing Powerlink to undertake each step of the Assessment Stage.

Powerlink invites written responses to each consultation from energy industry participants, energy market bodies, potential non-network solution providers and any other interested parties.

Information on what is in and out of scope of the consultation is provided as part of the consultation process.

Register to be notified of consultations

Providing expressions of interest as a non-network service provider

Priority Transmission Investments may comprise opportunities for non-network solutions. Potential providers of non-network solutions are encouraged to provide written response to the consultation, for full assessment of all credible options.

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