Case Studies

Project EnergyConnect: lead legal adviser to ElectraNet on Australia’s largest electricity transmission project

Piper Alderman was lead legal adviser to ElectraNet on the procurement and design and construct contracts for the South Australian component of Project EnergyConnect, the $2.28 billion interconnector linking the South Australian and New South Wales electricity grids for the first time.

Team: Juniper Watson, Martin Lovell

Service: Infrastructure & Construction | Projects
Sector: Electricity & Gas Regulation | Energy & Resources | Infrastructure | Power & Utilities | Renewables

Project EnergyConnect is Australia’s largest electricity transmission project. The roughly 900km high voltage interconnector runs between Robertstown in South Australia and Wagga Wagga in New South Wales, with a further connection into north west Victoria. It adds 800MW of transfer capacity between the three states and is expected to enable more than 2GW of new solar, wind and battery storage projects to connect to the National Electricity Market. ElectraNet delivered the 206km South Australian section of the interconnector, including the state’s first 330kV substation at Bundey. It is the largest transmission project ElectraNet has ever delivered.

Piper Alderman acted as ElectraNet’s lead legal adviser throughout the procurement, from the expression of interest and request for tender stages, through a dual early contractor involvement (ECI) process, to negotiation of the design and construct (D&C) contracts for the major works packages.

The transmission line works were awarded to Downer Utilities Australia Pty Ltd. They comprise approximately 200km of new 275kV and 330kV transmission line between the interconnector at the SA/NSW border and the new Bundey Substation near Robertstown, plus approximately 10km of new line between the Robertstown and Bundey substations. The substation works were awarded to Consolidated Power Projects Australia Pty Ltd. They include construction of the new Bundey Substation and augmentation of the existing Robertstown and Tungkillo substations.

ElectraNet completed the South Australian component on time and within budget, despite challenges including weather, equipment supply and COVID-19. Downer delivered 384 new transmission towers and the associated stringing works, and Consolidated Power Projects delivered the Bundey Substation. Construction of the full interconnector is now complete, and the final New South Wales section is being energised ahead of AEMO inter-network testing.

Project EnergyConnect builds on Piper Alderman’s longstanding work for ElectraNet on major transmission infrastructure, including the 300km Prominent Hill transmission line and connection arrangements for OZ Minerals (now BHP).

Client feedback

Sam Dighton, General Counsel & Company Secretary, ElectraNet said:

“Project EnergyConnect was ElectraNet’s largest infrastructure project in its history. The Piper Alderman team (Martin and Juniper) were our lead legal advisors throughout the procurement process (EOI and RFT), dual ECI engagement and negotiation of D&C contracts for major works packages including transmission lines (awarded to Downer) and substation works (awarded to CPP). Their persuasive negotiating style, sharp technical knowledge, quick turnaround times and ability to explain complex legal concepts in plain English terms was critical to closing out key contracts efficiently and achieving such a successful outcome for the business.”

“Martin is one of our ‘go to’ lawyers, bringing excellent commercial nous and pragmatic decision making to help deliver complex, high value and business critical transactions. Martin’s ability to focus commercial and legal negotiations on the issues that matter has been key to our success in concluding transactions ahead of time and on budget. He is ‘magic circle’ quality.”

Piper Alderman Partner, Martin Lovell, said at the award of the contracts:

“We are delighted to have reached this major milestone with ElectraNet, having been closely involved in Project EnergyConnect since its inception. The construction works to be carried out by Downer and Consolidated Power Projects are critical to the success of the project and we are excited to have helped bring this deal to fruition.”

“We expect this new transmission infrastructure to be a catalyst for investment in new renewable energy generation projects throughout the region.“