The company that will construct a new transmission terminal in North Ballarat as part of a major investment in the area's electricity network has been decided.
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Mondo, part of the AusNet Services Group (AusNet Services), will deliver the project, the Australian Energy Market Operator (AEMO) announced this week.
The terminal will be in North Ballarat - although an exact location is yet to be confirmed - and is just one part of a $370 million plan to boost western Victoria's electricity infrastructure.
Known as the Western Victorian Transmission Project, it will include minor upgrades to existing infrastructure, as well as major transmission works.
In addition to the new North Ballarat terminal station, long-distance high voltage transmission lines will be installed between Bulgana and Sydenham terminal stations.
The project is designed to address long-held concerns that the network would not be able to keep up with the many renewables projects that have recently been completed in the area.
Stuart Benjamin, the chair of the Grampians New Energy Taskforce, said the project would also allow for additional capacity in the future, as well as permit power to be distributed more widely.
He suggested it could pave the way for between $3 to 5 billion worth of additional renewables projects in the region.
At this stage the design, route and location of all the new infrastructure required for the project have not yet been confirmed.
There will be further community engagement before any routes or locations are approved. Mondo/ AusNet Services will take responsibility for planning approvals process.
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The mayor of Ballarat Cr Ben Taylor welcomed news of the appointment. He said the region was "particularly exposed" to interruptions in electricity supply. An improved capacity would help attract new businesses to the region and keep energy prices affordable, he said.
According to a press release issued by AEMO, the project will allow the cost of generation to be significantly lower than it otherwise would have been, and will facilitate future expansion of the transmission network.
The chief executive officer of AEMO Audrey Zibelman said the project would "deliver urgent transmission capacity... unlock renewable energy resources and maximise the productivity of existing assets."
In the shorter term, there will be upgrades to existing 220 kilovolt transmission line infrastructure running from Moorabool to Terang to Ballarat.
In the medium term - scheduled between 2021 to 2025 - the new North Ballarat terminal station and 220 kV double circuit transmission lines from North Ballarat to Bulgana (via Waubra) will be constructed.
There will also be new 500 kV double circuit transmission lines from Sydenham to North Ballarat connecting two new transformers.
According to AEMO, the works will deliver around $670 million in market benefits. The project is due to be completed by 2025.
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