Energy Networks Australia has welcomed the Australian Energy Regulator’s (AER) approval of a proposed new interconnector between South Australia and New South Wales.

The Project EnergyConnect transmission line will enable NSW to import cheap renewable electricity from SA when there’s an excess, as well as allowing SA to import more power from NSW and Victoria when there’s not.

CEO Andrew Dillon said the new interconnector would support a more resilient electricity system while putting downward pressure on wholesale prices – and customer bills.

“A more interconnected electricity market is more efficient, reliable and flexible and will help lower power prices for customers,” Mr Dillon said.

“This is a critical link to the development of a more connected National Electricity Market that better enables the transition to a low emissions energy future.”

The AER determination confirmed the proposed interconnector was the best option for meeting the needs of consumers and would enhance South Australia’s power system security.

The next stage is for ElectraNet to make an application to the AER for contingent project funding.