Transgrid has fully energised Australia’s largest transmission project, EnergyConnect, completing the final construction milestone for the interconnector linking South Australia, New South Wales, and Victoria. The project’s activation promises to unlock renewable generation and bring lower power costs to consumers across the NEM’s three most populous states. As the new capacity came online, market dynamics shifted, with NEM spot prices plunging 39.6 per cent week-on-week to an average of $97.02/MWh, despite renewable generation holding steady at 38.2 per cent of the mix.
While EnergyConnect moves into operation, the planning cycle for the next wave of major projects is already accelerating. In a busy day for regulatory filings, AEMO opened multiple consultations for its 2026 Integrated System Plan, seeking feedback on non-network options for key bottlenecks. The market operator is assessing options for expanding Tasmania’s Renewable Energy Zone, reinforcing Brisbane’s 275 kV network, and augmenting capacity between Central and North Queensland. These consultations signal the immense forward planning required to replicate the success of projects like EnergyConnect.
The market operator’s work extends beyond long-term transmission planning into the fine-grained rules governing the modern grid. AEMO also released draft reports seeking feedback on updated FCAS registration guides for batteries, wind, and solar farms. Further consultations were opened on constraint formulation guidelines and a new network access quantity model. This detailed technical work is critical for efficiently integrating the new generation and storage assets that major transmission lines are built to support.
At the distribution level, the financial realities of network management are in sharp focus. Jemena welcomed the AER’s final determination on its 2026-31 pricing plan, which it claims will strengthen its role in the transition while reducing costs for customers. In contrast, AusNet Services applied to the AER to pass through costs from the January 2026 bushfires in Victoria. The application highlights the growing pressure on networks to fund climate resilience and recover costs from severe weather events, a key challenge for regulators balancing reliability with consumer affordability.
A large-scale UK study on heat pump installations offers a timely caution for Australia’s own electrification efforts. The research revealed a significant gap between the modelled efficiency of heat pumps and their real-world performance, largely due to poor commissioning practices. This finding matters for Australia because it underscores that realising the benefits of decarbonisation depends not just on grid-scale infrastructure, but on quality control and skills at the point of household installation. Getting the big wires right is only half the battle.