The actual average cost has risen to AU$225 million per site, with Transgrid noting that further escalation is likely for the remaining Phase 2 condensers due to supply chain impacts from the Middle East conflict.
The MCC assessment focuses on the remaining five Phase 2 synchronous condensers identified in the PACR, which are required to prepare the NSW grid for the retirement of the remaining coal generators.
Transgrid has concluded that three Phase 2 synchronous condensers, rather than five, represent the appropriate response under updated cost and coal-retirement assumptions, with the gap in system strength coverage to be filled by 900MW of grid-forming equipped BESS, pending confirmation of technical credibility for the minimum level requirements.
The credibility question remains unresolved. Grid-forming equipped BESS are currently not considered by AEMO to meet minimum system strength requirements.
Transgrid said it is engaging with industry, AEMO and other network service providers to validate whether grid-forming BESS can credibly contribute at the minimum level, with a final statement due by 24 August 2026 following a one-month public consultation on the draft assessment.
