Today in Parliament, Abigail spoke in support of an electricity infrastructure Bill to provide regulatory certainty for critical grid stability projects amid privatisation challenges, stressing the need for stronger government control, better project planning, and workforce support to ensure reliable, affordable, and decarbonised energy in NSW.
Abigail said:
On behalf of The Greens, I support the Electricity Infrastructure Investment Amendment (Priority Network Projects) Bill 2025. Because of the privatised nature of the energy network, the Government is not in control of the rollout and development of energy infrastructure. Powers currently exist under the Electricity Infrastructure Investment Act for the Minister for Energy to issue directions requiring transmission network operators like Transgrid to undertake priority transmission infrastructure projects. That power does not necessarily extend to system security projects like the purchase and installation of synchronous condensers, as an example. Because of the complexity of the energy network regulatory system, there is uncertainty about whether Transgrid would make those investments or be able to secure financing for them without some regulatory certainty. The direction would provide that certainty.
Certainty is necessary, because we need grid stability. Projects like synchronous condensers provide vital reactive power, voltage regulation and inertia, necessary for a reliable energy system as the mix of energy sources changes and moves into the future. Wind and solar projects connect to the grid via inverters and are therefore unable to provide inertia or reactive power, which can make the grid less stable and more susceptible to surges and variability. Another important method of delivering grid security is through grid scale batteries, and we are glad to see the Waratah Super Battery Project coming along.
Questions have been raised over whether the power gives the Minister more power to direct other projects beyond synchronous condensers, for example. As a general principle, we want to give the Government more power to direct and manage the rollout and transition of the energy network, rather than leaving it up to market forces. As a result, we do not find this argument hugely compelling. To be honest, the necessity for this form of legislation puts the lie to the entire privatisation myth. Energy is too important to be left to the private sector. Not only that, but we also cannot even rely on the private operators to do the right thing at the right time without being explicitly directed, which makes you wonder what the point of them is. It was always just about the short-term financial sugar hit.
Upgrades to the energy grid, including both powerlines and stabilising equipment, are critical to replace New South Wales's ageing coal-fired power stations and maintain a reliable supply of affordable energy. Directions can better facilitate the delivery of these projects by making clear what needs to be done and by when. The "what and when" question is vitally important. We need to have more say over the sequencing of energy projects. Electrical workers are being left in the lurch and then overwhelmed with demand, as projects continue to be poorly sequenced. Private markets and the status quo planning system will not get that done, and I encourage the Minister to work closely with unions and workers to have sensible conversations about how we structure the rollout in a way that works for communities and the workforce. We also need to do a lot more to deliver TAFE places for electrical trades—and I will have a lot more to say about that in the future—but that is a bit beyond the latitude of this bill.
We have the privatised Transgrid, which is now the responsible party for system strength. What could go wrong? We have the only real buyer for system strength projects, and they are not feeling particularly inclined to make the investment, so it turns out we need to force them. Transgrid was in the media earlier this year asking for direct Government underwriting to purchase synchronous condensers and other system strengthening projects, which is not a very good joke. Not satisfied with a virtual monopoly privatised business, it thinks it can ask for more handouts. But I do not consider this to be a particularly controversial piece of legislation, considering its context. It is the sort of legislation a government ends up resorting to when it is not in control of energy assets, by reason of privatisation, but really should be. It would be far preferable to reverse the disaster that is privatisation and "take the power back". However, I will not be holding my breath for that to happen any time soon under either major party. The bill is fine. We will get important things we need to protect system strength and stability. Transgrid will keep printing money, but hopefully we will get a little closer to decarbonisation. The Greens support the bill.
7 August 2025