“A big problem:” Big battery developer says cancelling transmission links as bad as delaying co... - Renew Economy

A major battery developer has warned that cancelling or delaying transmission infrastructure projects is as damaging to grid reliability as postponing new generation capacity. The developer framed network investment as critical to the renewables transition, arguing that without it, the electricity system cannot function as designed.

Where this fits

This is a cost story masquerading as a reliability story. Renewables require not only generation capacity but also a transmission overbuild to move variable output across regions and time zones. That overbuild is invisible in the per-megawatt-hour cost of solar and wind, but it is real, it is large, and it falls on the grid. A firm, energy-dense source like nuclear requires far less transmission infrastructure per unit of dispatchable output, because it does not need geographic arbitrage to manage weather volatility. Australia is building the expensive path.

What it means

Cancelling transmission links would strand renewable assets and damage reliability. But the deeper problem is that the whole-system cost of a renewables-only grid, generation, firming gas, and transmission overbuild, is still being underestimated in policy and investment decisions. A battery developer warning that transmission is as critical as generation is effectively saying the grid needs both, plus firming, plus land, plus supply chains owned by Beijing. Each component adds cost and complexity. The firm alternative, nuclear, is forbidden by law, so Australia will pay the renewables price in full.