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 AUD 300 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.
“Transformers are a critical enabler of the energy transition,” he said. “This agreement locks in access to globally scarce equipment, giving us greater certainty to deliver critical projects.”
“Around the world, energy companies are competing for a limited pool of equipment. By acting early and partnering with a trusted supplier like Hyosung, we can secure the infrastructure we need while managing cost pressures for Victorian households and businesses.”
Victoria has established renewable energy generation and storage targets, including 65% renewable energy generation by 2030 and 95% by 2035. It also aims to achieve at least 6.3 GW of energy storage by 2035, with an interim target of 2.6 GW by 2030. Decentralised generation is also expected to grow, with rooftop solar connected to AusNet’s distribution network forecast to increase by more than 20% by 2031.
Hyosung Chairman Cho Hyun-joon said the state’s energy transition is driving rising demand for advanced grid stabilisation and high-voltage equipment with Australia as a whole firming as a key strategic market for the company.
“Australia is one of the most dynamic markets in the world in terms of both the pace and scale of energy transition,” he said, adding that Hyosung “will continue expanding cooperation into next-generation grid solutions, such as high-voltage direct current systems, positioning ourselves not merely as an equipment supplier, but as a partner helping drive Australia’s energy transition.”
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