Transgrid signs contract to secure vital transmission equipment

Transgrid has announced that it has signed a $100 million contract with ZTT Australia for the delivery of over 17,500 km of high-voltage conductors. The company is the operator of the high-voltage electricity transmission network in New South Wales and the Australian Capital Territory, and is in a race to secure critical transmission equipment as it prepares to deliver the federal government’s priority grid projects.

“We continue to build our global supply chain to secure the specialised kit needed to build the future clean energy grid and ensure competitive and efficient delivery of the federal government’s energy plans,” said CEO Brett Redman. “Transgrid has finalised a $100 million contract with ZTT Australia Pty Ltd to supply 17,500 kilometres of high-voltage conductors — enough to stretch from Sydney to Dublin. We are also finalising a separate contract with another Australian company to supply other locally produced conductor elements.”

The contract is part of Transgrid’s Powering Tomorrow Together program, bundling procurement for major projects HumeLink, VNI West and EnergyConnect, which will save up to $500 million.

The program is enabling Transgrid to purchase materials like substation equipment earlier and at a lower cost, enabling limited resources to be used across multiple projects. The orders are also supported by $385 million Australian Government underwriting as part of the Rewiring the Nation program.

Transgrid Executive General Manager, Delivery, Craig Stallan travelled to Asia recently to sign the agreement, which will see ZTT Australia Pty Ltd (a subsidiary of ZTT International Ltd) supply the conductors.

“Transgrid is investing $16.5 billion in transmission infrastructure in NSW over the next decade to accelerate the federal government’s vision,” he said. “Our major transmission projects involve a long shopping list for big kit, and we are competing with the likes of Europe, the USA and the United Kingdom to secure highly sought after slots on production lines.

“The new conductors will be used on HumeLink and VNI West, and by securing supply now, we can deliver projects faster and cheaper for consumers. It’s also reducing risk as we compete with other energy companies and nations to secure critical, large-scale equipment, materials and skilled labour to deliver the projects Australia needs.”

Dean Farrar, ZTT Australia General Manager, said the conductors will be manufactured in ZTT Group’s Hekou manufacturing campus and will be delivered to Australia in 2024 and 2025.

“We are honoured to be partnering with Transgrid for their current and future major projects. This contract builds on our ongoing commitment to support the Australian energy and telecommunications markets, now and into the future,” Farrar said.

This year Transgrid has also secured 15 shunt reactors and 25 single-phase transformers worth approximately $150 million, with arrival commencing in late 2024.