The Pulse | 4 December 2025

Wires, Watts & Worksites:
NSW’s Energy Powers Up   

The commencement of the HumeLink transmission project signals a wave of government-backed infrastructure spending, creating significant opportunities in civil construction and the supply chain [1, 10, 18].  

Concurrently, the Battery Energy Storage System (BESS) market is experiencing a surge in investment, with major projects in the Hunter and Central West regions attracting new international players and long-term financial commitments [8, 16]. This momentum, however, is set against a backdrop of market risks.  

Reports indicate a broader softening in large-scale solar and wind investment, raising questions about Australia's ability to meet its 2030 renewable energy targets [5, 20]. Compounding this, expert warnings about grid instability and the potential need to extend the life of coal-fired power stations highlight substantial engineering and commercial challenges ahead [3, 21].  

For NSW construction professionals, this landscape presents a dual reality: immediate, large-scale opportunities in transmission and storage, contrasted with long-term variability in the broader renewables pipeline. 

HumeLink Kick-off Signals Major Infrastructure Push  

The NSW energy infrastructure sector has entered a new phase with construction commencing on the HumeLink project, a 365km transmission line described as a "once-in-a-generation investment" [1, 19]. With an estimated cost of up to $5 billion, it is currently Australia's most expensive transmission project [6, 10].  

The project's primary objective is to integrate 2,200MW of on-demand energy from Snowy 2.0 and other renewable generators into the national grid, enough to power three million homes for a week [4, 11, 14]. The scale of the undertaking presents  opportunities for the construction supply chain.  

The project requires over 800 new transmission towers, approximately 52,000 tonnes of structural steel and more than 9,300km of high-voltage conductor wires [1, 10, 23]. With over 700 personnel already on-site, the project is expected to create up to 1,600 construction jobs and inject an estimated $6.3 billion in direct and indirect investment into regional NSW economies [6, 18, 22].  

This development is underpinned by a shared clean energy vision between the Commonwealth and NSW governments, signalling strong policy support and a sustained pipeline for contractors and suppliers with expertise in large-scale linear infrastructure [4, 10]. 

Battery Storage Investment Surges with New Market Entrants  

The Battery Energy Storage System (BESS) market in NSW is experiencing rapid growth, attracting domestic and international investment [2]. This trend is highlighted by several major project commitments. In the Hunter region, AGL is developing an $800 million, 500MW battery, part of a wider $1 billion investment boost for the area that also includes a new solar module manufacturing plant [8].  

Further west, the Bulabul BESS project near Wellington NSW has secured a landmark 15-year, $300 million agreement with Danish energy trader InCommodities [9, 13, 15]. This deal, covering the 300MW/600MWh system, signals the entry of new global players willing to make long-term commitments, a move expected to increase market competition and drive innovation [15, 16, 17].  

These developments are supported by government initiatives such as the NSW Electricity Infrastructure Roadmap and the establishment of Renewable Energy Zones (REZ), which are creating a favourable regulatory environment for storage projects [9, 16]. However, technical risks remain a key consideration for the sector, as evidenced by transformer failures that have temporarily limited the operational power of the Waratah Super Battery [2]. This underscores the need for robust procurement and quality assurance in BESS projects. 

Grid Reliability and Investment Headwinds Challenge Transition Pace 

Despite progress on key infrastructure, headwinds are challenging the pace and stability of NSW's energy transition. Experts have raised concerns about grid reliability, with AEMO warning that a renewables-heavy grid is vulnerable to failure during extended "wind droughts" [3]. This has led to debate over the necessity of a near-duplicate gas-powered backup system to ensure supply as 90% of coal-fired power is set to exit the system [3].  

This uncertainty is compounded by a reported slowdown in investment for large-scale solar and wind projects, with 2025 on track to be the lowest year in a decade [5]. This investment trend puts pressure on the national 2030 renewable energy target, which some analysts predict will not be met until 2037 [3, 5].  

The immediate commercial reality of this challenge is reflected in the NSW government's reported consideration of a deal to extend the operational life of the Eraring coal power plant beyond its 2027 closure date to help manage the risk of blackouts [21]. For developers and contractors, this creates a complex risk environment, balancing government-backed projects against broader market uncertainty and potential policy shifts designed to support short-term energy security. 

Final Thoughts

The NSW construction landscape is being reshaped by the immense scale of the energy transition. While nation-building projects like HumeLink and the influx of capital into battery storage offer a robust pipeline of immediate work, the industry must remain prepared. Underlying risks associated with grid stability and a potential slowdown in broader renewable investment are reported to create a variable long-term outlook [3, 5, 21].  

1. null. (December 1, 2025). HumeLink construction kicks off. https://www.energytodaymag.com.au/humelink-construction-kicks-off-2/ 
2. PV Magazine | by Marija Maisch. (December 1, 2025). Global grid-scale BESS deployment up 38% year-on-year through October. https://www.pv-magazine-australia.com/2025/12/01/global-grid-scale-bess-deployment-up-38-year-on-year-through-october/ 
3. The Australian. (November 30, 2025). Wind droughts will put renewables energy grid at risk. https://www.theaustralian.com.au/commentary/letters/wind-droughts-will-put-renewables-energy-grid-at-risk/news-story/ff1529634fef9a56db22fe56a069bfee?btr=6f2737a783831e0e365e43cb2473527c 
4. Energy Source & Distribution News. (December 1, 2025). First towers rise in HumeLink transmission project. https://esdnews.com.au/first-towers-rise-in-humelink-transmission-project/ 
5. The Australian | by Perry Williams, Rachel Baxendale 30 November 2025, 9:09pm AEDT. (November 30, 2025). Trapped in transition torture: solar, wind investment crash puts renewable target in doubt. https://www.theaustralian.com.au/business/renewable-energy-economy/trapped-in-transition-torture-solar-wind-investment-crash-puts-renewable-target-in-doubt/news-story/04b8a72b3f1bd959f209d0bf8669ab7e?btr=0f4aca325b5ca6b8fabe50d466b7d074 
6. Broome Advertiser | by Cameron Micallef 29 November 2025, 3:36pm AEDT. (November 29, 2025). Giant $5bn energy project begins construction to tackle Australia's power crisis. https://www.broomead.com.au/business/giant-5bn-energy-project-begins-construction-to-tackle-australias-power-crisis-c-20834368
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8. Gloucester Advocate | by Matthew Kelly 2 December 2025, 6:00pm AEDT. (December 2, 2025). Hunter's energy future gets a $1 billion boost in 24 hours. https://www.gloucesteradvocate.com.au/story/9125156/agl-continues-talks-with-tomago-aluminium-on-energy-supply/ 
9. Energy Source & Distribution News | 28 November 2025, 8:05am AEDT. (November 28, 2025). AMPYR Australia and InCommodities ink Bulabul BESS deal. https://esdnews.com.au/ampyr-australia-and-incommodities-ink-bulabul-bess-deal/ 
10. Renew Economy | by Joshua S Hill 3 December 2025, 8:10am AEDT. (December 3, 2025). First of 800 new towers erected for Australia’s most expensive transmission project to date. https://reneweconomy.com.au/first-of-800-new-towers-erected-for-australias-most-expensive-transmission-project-to-date/ 
11. NT News | by Cameron Micallef 27 November 2025, 5:53pm AEDT. (November 27, 2025). Giant $5bn energy project begins construction to tackle Australia's power crisis. https://www.ntnews.com.au/business/breaking-news/giant-5bn-energy-project-begins-construction-to-tackle-australias-power-crisis/news-story/fcd5b5360418dc67ec278f3d7246f146?btr=eb110ce96e86d213fdd638a2256a422e 
12. Yahoo! Finance | by Cameron Micallef 27 November 2025, 4:03pm AEDT. (November 27, 2025). Major update as Aussie energy crisis looms. https://au.finance.yahoo.com/news/major-aussie-energy-crisis-looms-050352476.html?guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAHdQkWOjBz2zZ-F0bkB31EaSr9-wKmmnEfU0_7rES6a515l3haL7fOa3re6yw8XrfnaY9fdvC5k-9du75sFVSdtVGT-6Njl0rj9_ajEENu-QInm53wLp17k4aqhwC3zoajpSGZqfIIpLGiEfiDO-fH-H9HXHMq2NIi57-bAxyJbf&_guc_consent_skip=1764718087 
13. Finance News Network | by Finance News Network 27 November 2025, 3:52pm AEDT. (November 27, 2025). Ampyr Australia Signs Landmark Battery Deal. https://www.finnewsnetwork.com.au/archives/finance_news_network3292261.html 
14. Sky News | 27 November 2025, 3:25pm AEDT. (November 27, 2025). Giant $5bn energy project begins construction to tackle Australia's power crisis. https://www.skynews.com.au/breaking-news/giant-5bn-energy-project-begins-construction-to-tackle-australias-power-crisis/news-story/fcd5b5360418dc67ec278f3d7246f146 
15. by Hugo Mathers 27 November 2025, 12:14pm AEDT. (November 27, 2025). Ampyr Australia signs $300m battery deal with energy trader InCommodities. https://www.capitalbrief.com/briefing/ampyr-australia-signs-300m-battery-deal-with-energy-trader-incommodities-ae27bed3-758b-46ee-9422-90fbc8dc57c0/ 
16. PV Magazine | by Ev Foley 27 November 2025, 10:45am AEDT. (November 27, 2025). Ampyr inks $300 million long term agreement for Bulabul BESS. https://www.pv-magazine-australia.com/2025/11/27/ampyr-inks-300-million-long-term-agreement-for-bulabul-bess/ 
17. Green Review. (November 27, 2025). AMPYR, InCommodities ink 15-year battery deal. https://greenreview.com.au/energy/ampyr-incommodities-ink-15-year-battery-deal/ 
18. Transgrid | 27 November 2025, 1:00am AEDT. (November 27, 2025). Nation-critical HumeLink project marks major milestone as first towers rise. https://www.transgrid.com.au/media-publications/news-articles/nation-critical-humelink-project-marks-major-milestone-as-first-towers-rise/ 
19. Utility | 2 December 2025, 7:20am AEDT. (December 2, 2025). Key link in national energy grid gets underway. https://utilitymagazine.com.au/key-link-in-national-energy-grid-gets-underway/ 
20. The Guardian | by Graham Readfearn 1 December 2025, 7:22pm AEDT. (December 1, 2025). Australia could miss clean energy target as solar and wind investment slumps, investors warn. https://www.theguardian.com/environment/2025/dec/01/australia-could-miss-clean-energy-target-as-solar-and-wind-investment-slumps-investors-warn  
21. The Age | by Mike Foley, Alexandra Smith, Simon Johanson 1 December 2025, 4:55pm AEDT. (December 1, 2025). Nation’s largest coal power plant may get another lifeline to prevent blackouts. https://www.theage.com.au/politics/federal/taxpayers-on-hook-to-prevent-blackout-risk-if-eraring-shuts-in-2027-20251201-p5nju6.html 
22. PV Magazine | by Transgrid 1 December 2025, 2:21pm AEDT. (December 1, 2025). Nation-critical HumeLink project marks major milestone as first towers rise. https://www.pv-magazine-australia.com/press-releases/nation-critical-humelink-project-marks-major-milestone-as-first-towers-rise/ 
23. Energy | by Tom Parker 1 December 2025, 10:59am AEDT. (December 1, 2025). All rise as first HumeLink towers stand tall. https://www.energymagazine.com.au/all-rise-as-first-humelink-towers-stand-tall/