Connecting large-scale generation to the transmission grid or a supply network

Read about the energy market and how large-scale generation projects connect to the transmission grid or a supply network.

National Electricity Market

The National Electricity Market (NEM) is a wholesale spot market into which generators sell electricity. Supply is pooled and matched to demand in real time through a centrally coordinated process.

Retailers purchase electricity from the NEM spot market and sell it to electricity customers.

Although generators and electricity retailers buy and sell electricity through the wholesale spot market, they often also have contracts with each other that sit behind the spot market to manage financial risks.

Connecting large-scale generation to the transmission grid or a supply network

Most large-scale generation projects will need to connect to a transmission or distribution network. Securing grid connection is usually a critical path item for projects as it can take years to allow for the completion of connection studies and construction of network infrastructure. Network connection can also be a significant component of project costs. Some large-scale generation may connect to a supply network that is not part of the transmission or distribution network.

To access the electricity grid, as the proponent of a large-scale project, you are required to liaise with either Powerlink Queensland (i.e. the transmission network) or Energex or Ergon Energy (i.e. the distribution network), depending on project location and size.

You should engage with these network businesses in the initial stages of your project's development, to ensure that the regulatory approvals process associated with both a connection application and development application are undertaken concurrently where possible.

Read more about connecting a:

Electricity licensing

If your generation project has over 30MW generation capacity, you will need to secure a Generation Authority. This is issued by Queensland Treasury and authorises its holder to connect the generating plant to a transmission grid or supply network.

In order to secure a generation authority, you must apply in writing and pay the prescribed fee.

Read more about electricity licences, including guidelines for a generation authority.

Note: A generating plant with a capacity of 30MW or less does not need to apply for a generation authority.

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