Transgrid's 2026 Transmission Annual Planning Report reflects the dynamic nature of the deep transition. In this sustained period of delivery, the system is evolving rapidly and at scale, and we are adapting with it.
Data centres, electrification, rooftop solar, household batteries and changing industrial loads are reshaping where and when electricity is used. In this environment, Transgrid is using an adaptive planning approach to support multiple development pathways and technologies while maintaining flexibility in decision-making beyond the current delivery horizon. This approach will help our network deliver reliable, affordable and sustainable outcomes for consumers both through the deep transition and into the new transitioned era from 2035 and beyond.
To connect renewable generation to the NSW major load centres, we are building a new, greatly expanded transmission backbone. Chapter 2 presents the completed, ongoing and new transmission projects that will make up the future grid. In an important milestone, Stage 1 of EnergyConnect is now fully operational, with 150 MW of capacity released in both directions, marking the successful transfer of energy between NSW, SA and VIC. Stage 2 of EnergyConnect has been energised, with all capacity expected to be in service by the end of 2026. Chapter 2 also details progress on our augmentation projects and our collaborative work with AEMO, EnergyCo and Distribution Network Service Providers.
Our forecasts continue to suggest that new thermal and voltage constraints will continue to appear and grow in additional regions. As Chapter 3 describes, Transgrid is responding to these challenges by using non-network solutions, operational innovation and connection process improvements to unlock capacity, manage increasing operational complexity, reduce constraints and deliver lower-cost outcomes for consumers.
Meanwhile, our demand forecasts in Chapter 4 show structural shifts in supply and demand. New and changing loads, including data centres, other large single-site loads and electrification-driven demand, are reshaping both peak and minimum demand. Peak demand is rising faster than previously anticipated as these loads continue to connect. But the trajectory of minimum demand is different from previous projections. Due to the rapid growth in electrification and large loads with relatively continuous demand profiles such as data centres, we now expect the long-term decline in minimum demand to reverse by around 2029, although not before minimum demand falls below 2,000 MW as the net impact of consumer energy resources reduces household grid energy consumption.
The changing generation mix as well as shifts in structural demand and supply make the task of meeting Transgrid's system security responsibilities extremely complex. Chapter 5 explains how we are satisfying our system strength obligations and outlines progress against our plan for enhancing Transgrid's control room systems. Horizon 1 is complete, and we are awaiting a funding decision for Horizon 2, which will improve situational awareness, helping ensure the network remains secure under the broader range of operating conditions outlined in this report.
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