Electricity Transmission in Australia: Market Size, Businesses & Forecast 2026

The electricity transmission industry in Australia operates and maintains the critical high-voltage grids that transport electricity from power generation sources to lower-voltage regional distribution networks. According to the Australian Energy Regulator (AER) State of the Energy Market report, the regulated electricity transmission networks encompass a combined line length of 44,381 kilometers and a collective regulatory asset base of $21.7 billion as of 2021. The sector is undergoing a massive transformation driven by the decommissioning of coal-fired generation and the rapid integration of geographically dispersed renewable energy. As outlined in the Australian Energy Market Operator (A

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What does the Electricity Transmission in Australia industry cover?

This industry consists of entities primarily engaged in operating high-voltage electricity transmission systems, including transmission lines, towers, and transformer substations. These networks serve as the high-capacity backbone of Australia's energy infrastructure, conveying bulk electricity across long distances from major power plants to regional distribution nodes. The structural scope encompasses both statewide overhead alternating current (AC) lines and strategic high-voltage direct current (HVDC) subsea or underground interconnectors that link distinct regional grids.

• •Classified officially under the ANZSIC system as Code 2620, Electricity Transmission.
• •Primary economic activities include high-voltage line operation, grid switching, and substations management.
• •Excludes lower-voltage poles and wires, which are categorized under electricity distribution.

Who operates in the industry and how is it structured?

The Australian transmission landscape is structured primarily around state-based regional monopolies known as Transmission Network Service Providers (TNSPs). These entities operate either under long-term private lease frameworks or directly as state government-owned corporations. Cross-border interconnectors privately owned by merchant operators complement these state-wide monopolies to allow power flows between competitive regional jurisdictions.

• •Powerlink Queensland is fully owned by the Queensland State Government and operates 13,986 km of lines.
• •TransGrid operates the primary high-voltage transmission network across New South Wales and the ACT.
• •TasNetworks is owned by the Tasmanian Government and handles both transmission and distribution in Tasmania.

What drives demand in the industry?

Demand for electricity transmission services is shifting from conventional population growth toward the logistical demands of geographic generation displacement. The rapid retirement of industrial thermal coal plants requires new grid corridors to connect far-flung Renewable Energy Zones (REZs) to metropolitan load centers. Additionally, structural electrification trends across transport, manufacturing, and domestic gas sectors are expanding long-term volume requirements.

• •Total electricity demand in the National Electricity Market (NEM) is projected to nearly double from 205 TWh in 2025 to 389 TWh by 2050.
• •The proliferation of artificial intelligence and digital infrastructure is accelerating data center connection demands.
• •Underlying quarterly grid demand averaged 25,496 MW in Q1 2026, driven by electrification and population gains.

Who are the notable companies in the industry?

Because transmission networks operate as natural regional monopolies, direct head-to-head utility competition does not exist within individual state geographic footprints. Instead, corporate activity centers around capital deployment, technical engineering execution, and the ownership of interconnector infrastructure. Both public corporations, private consortia, and government entities control major network assets subject to strict economic oversight.

• •AusNet Services is a major private infrastructure operator owning and maintaining the high-voltage electricity transmission network in Victoria.
• •ElectraNet operates as the principal high-voltage transmission network service provider throughout South Australia.
• •APA Group holds strategic ownership stakes in competitive electricity transmission links, including the Basslink interconnector through its corporate portfolio.
• •Spark Infrastructure (through its asset consortium stakes) represents significant private investment in local electricity network infrastructure.

What are the recent trends and outlook?

The current focus of the industry is heavily centered on grid modernization, expanding interconnectivity, and resolving network congestion. Policymakers are actively accelerating large-scale linear infrastructure builds to prevent renewable energy curtailment as aging thermal assets exit the market. System operators are also introducing advanced grid-forming technologies and synchronous condensers to maintain grid stability amid fluctuating renewable supply.

• •AEMO identifies an urgent mid-term requirement to complete 4,000 km of new transmission corridors and upgrade 1,000 km of existing lines.
• •In late 2025, Victoria altered its framework, transitioning transmission planning responsibilities from AEMO over to a dedicated state entity, VicGrid.
• •Large-scale battery storage capacity in the NEM more than doubled between 2025 and Q1 2026, reaching 4,445 MW to help manage network load peaks.

How is the industry regulated?

The industry operates within a highly rigid regulatory framework that dictates revenue caps and ensures compliance with technical stability standards. Economic regulation is centralized under national bodies that determine the maximum allowed revenues TNSPs can recover from consumers. Market rules are continuously revised to update technical grid access conditions, streamline the connection of new inverter-based resources, and preserve system security.

• •The Australian Energy Regulator (AER) sets revenue caps and conducts economic regulation for major transmission networks across the NEM.
• •The Australian Energy Market Commission (AEMC) creates and updates the National Electricity Rules (NER) governing grid connections.
• •The NEM Access Standards Package 1 took effect in late 2025 to streamline high-voltage direct current and renewable project connections.

Government, statistical and trade sources used for this Claight analysis.

• Australian Bureau of Statistics ANZSIC 2006 (Revision 2.0) ·
• Australian Energy Regulator (AER) State of the Energy Market ·
• Australian Energy Market Operator (AEMO) Integrated System Plan 2024-2026 ·
• Australian Energy Market Commission (AEMC) Transmission Frameworks