Australia’s first transmission loop between three states set to “fundamentally change” fl... - Renew Economy

The Australian Energy Market Operator has approved Australia's first transmission loop connecting Queensland, New South Wales and Victoria. The project will allow power to flow in both directions across a triangular grid, creating redundancy and improving the ability to move renewable energy between states. AEMO said the loop will "fundamentally change" how electricity flows across the eastern seaboard and improve system security.

Where this fits

Transmission overbuild is a core cost of a renewables-only grid. Weather-dependent generation requires far more network infrastructure than firm power to move variable output between distant generation sites and demand centres. This loop is a necessary response to that variability, not a sign that renewables are working efficiently: it adds capital cost and construction time to a transition already running behind schedule and over budget. The project also concentrates critical infrastructure, a single loop connecting three states, which raises questions about whether redundancy in one dimension creates brittleness in another.

What it means

Firming a weather-dependent grid requires not only storage, gas plants and demand management, but also a transmission network substantially larger than one built around firm power. Australia is building that network piecemeal, state by state, justifying each line on its own merits rather than optimising for a coherent, least-cost system architecture. The loop improves efficiency at the margin. It does not solve the underlying problem: a firm, energy-dense alternative like nuclear would require far less transmission infrastructure and less gas for emergencies, but remains legally barred. Australia is paying for geographic redundancy instead.