Transgrid, the owner of New South Wales’ high-voltage power grid, has signed a contract with GE Vernova to supply synchronous condensers. Transgrid is responsible for operating and maintaining the state’s electricity transmission network. The company plays a crucial role in connecting generators, distributors, and major end-users, ensuring a reliable power supply across NSW.
The contract, valued at several hundred million dollars, involves the installation of these machines at five sites across NSW. Synchronous condensers are large spinning metal machines that stabilise the power grid without generating electricity. These devices provide essential grid services, traditionally supplied by coal-fired power stations, which are becoming scarce as coal plants close down. This scarcity raises concerns about the grid’s security during the ongoing energy transition.
Transgrid’s executive general manager network, Jason Krstanoski, stated that the accelerated procurement process has reduced the delivery schedule by two years. However, Transgrid cannot yet confirm that the syncons will be operational in time for the planned closure of Origin Energy’s Eraring coal plant in August 2027. The anticipated lack of grid services in NSW has fuelled uncertainty regarding the feasibility of Eraring’s scheduled shutdown.
Krstanoski added that the faster procurement timeline for the units should yield over $1 billion in market benefits, potentially offsetting their cost within a year. Transgrid opted for smaller machines, deploying two at each site, to expedite delivery amidst tight conditions in the power equipment market.