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Interconnectors in the National Electricity Market (NEM)

Interconnectors are high-capacity transmission lines that enable electricity to flow between the five NEM regions: South Australia, Victoria, Tasmania, New South Wales, and Queensland. They play a vital role in balancing supply and demand, ensuring reliability, and optimizing electricity costs across the market.

Interconnectors are critical infrastructure within the NEM, enabling efficient energy sharing across regions, improving price stability, and enhancing system reliability. As demand for renewable energy grows, ongoing upgrades and new interconnectors will play an even more significant role in shaping Australia’s energy landscape.

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Interconnector Map

The map below shows the major interconnectors between NEM regions:

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Role of Interconnectors

• Energy Transfers: Interconnectors allow electricity to move from regions with surplus (and lower spot prices) to regions with higher demand (and higher spot prices). This often equalizes prices between regions, improving market efficiency.
• Capacity and Constraints: Each interconnector has a nominal capacity defining its optimal power transfer capability under normal conditions. However, actual capacity can vary based on network conditions, thermal limits, or stability requirements.
• Reducing Local Reliance: By importing electricity, interconnectors can reduce the need for additional local generation capacity, acting as a substitute for regional generation investments.

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Key Interconnectors in the NEM

Below is a summary of the main interconnectors and their nominal capacities:

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Terranora Interconnector (N-Q-MNSP1)

• Connection: Queensland ↔ New South Wales
• Capacity:
  • Queensland to NSW: 210 MW
  • NSW to Queensland: 107 MW

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Queensland to New South Wales Interconnector (QNI)

• Connection: Queensland ↔ New South Wales
• Capacity:
  • Queensland to NSW: 1,300 MW
  • NSW to Queensland: 850 MW

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Victoria to New South Wales Interconnector (VIC1-NSW1)

• Connection: Victoria ↔ New South Wales
• Capacity:
  • Victoria to NSW: 400–1,700 MW
  • NSW to Victoria: 400–1,450 MW

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Basslink (T-V-MNSP1)

• Connection: Tasmania ↔ Victoria
• Capacity:
  • Tasmania to Victoria: 594 MW
  • Victoria to Tasmania: 478 MW

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Heywood Interconnector (V-SA)

• Connection: Victoria ↔ South Australia
• Capacity:
  • Victoria to South Australia: 600 MW
  • South Australia to Victoria: 550 MW

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Murraylink (V-S-MNSP1)

• Connection: Victoria ↔ South Australia
• Capacity:
  • Victoria to South Australia: 220 MW
  • South Australia to Victoria: 200 MW

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Future Interconnectors

• Project Energy Connect: A new interconnector between New South Wales and South Australia, with a planned capacity of up to 800 MW by 2026.
• Marinus Link: A second interconnector between Tasmania and Victoria, to be built in two stages, each with 750 MW capacity.