Residents in regional NSW and Victoria are contesting Transgrid's claims of exorbitant costs for an alternate HumeLink plan. 

They argue that burying the transmission cables underground would ultimately be more cost-effective. 

A recent report commissioned by community group Rethink HumeLink revealed that the 360-kilometre transmission project could be constructed underground for $7.3 billion. 

This stands in stark contrast to Transgrid's consultants, GHD engineering, who quoted a $11.5 billion price tag for the overhead option. 

Transgrid had initially estimated the overhead cost at $3.3 billion three years ago, which has now risen to $5 billion.

“This report makes a complete nonsense of claims that undergrounding is too expensive and will add significant costs to energy consumers,” says wagyu cattle farmer and Rethink HumeLink spokesperson Michael Katz.

Katz has urged the government to follow the lead of countries like Germany and prioritise undergrounding as a default option to support renewable energy initiatives.

This development follows a NSW parliamentary inquiry's conclusion that burying the transmission infrastructure would be too expensive and would cause project delays. 

The HumeLink project is crucial as it connects Snowy 2.0 to the grid. 

Opposition from local communities to transmission projects, aimed at linking solar and wind farms to the grid, poses a substantial challenge to Australia's emissions reduction targets and energy supply stability, particularly as coal-fired power stations are phased out.

Amplitude's report also highlighted additional benefits of undergrounding, including reduced fire risk, lower maintenance costs, and minimised energy losses compared to overhead wires.

“Comparing the cost per kilometre presented by GHD for the ... underground options with our own estimates and other benchmarks ... it is clear that even within the range of accuracy and considering current market cost pressures, the cost per kilometre used by GHD is excessive,” the report found.

The HumeLink project spans from Wagga Wagga in western NSW to Maragle in the Snowy Mountains, extending north to Bannaby, north of Goulburn. It is one of several urgently needed transmission links to connect new wind and solar farms in western NSW to major population centres like Sydney. These areas were previously powered by coal-fired plants.

However, the project's route through valuable farmland, national park areas, and rugged terrain has drawn community opposition. 

Critics argue that overhead poles and wires will harm habitats, scar national parks and farmland, and increase fire risk in rugged regions.