AusNet sidesteps global supply chain concerns with transformers contract

AusNet has signed a long-term supply contract with Hyosung Heavy Industries to secure the supply of up to 45 ultra-high-voltage power transformers as it works to strengthen Victoria’s transmission network, support the continued growth of renewable energy generation in the state and growing electricity demand.

Under the agreement, valued at about $300 million (USD 210 million), Hyosung will supply AusNet with 45 transmission transformers – needed to step voltage up or down across the grid – reactors and other critical power equipment over the next five years.

AusNet Chief Executive Officer David Smales said the Hyosung deal is essential to delivering Victoria’s future energy system, adding that the contract reduces supply chain risk and guarantees access to equipment that will improve network reliability and provide greater certainty for the delivery of solar, wind and battery projects across Victoria.