Interconnector Watch: Sunday 2 August 2026

Two interconnectors are binding right now, and both sit on the Victoria–Basslink–Murraylink axis, where a $69.94/MWh price gap between VIC1 ($10.50) and SA1 ($80.44) is being actively managed by network limits.

VIC1-NSW1 (VIC-NSW) is exporting 748.84 MW from Victoria into NSW, essentially at its 748.84 MW export ceiling, and is binding. This flow is consistent with the price differential: VIC1 sits at $10.50/MWh against NSW1 at $66.03/MWh, so the interconnector is transferring low-cost Victorian generation north, but it's constrained from moving more. Murraylink (V-S-MNSP1) is also binding, flowing 166.52 MW from VIC1 to SA1 against an 85 MW import limit and 166.52 MW export limit — effectively maxed out at its export cap, again pushing cheap Victorian energy into higher-priced SA1 ($80.44/MWh). With both VIC-NSW and Murraylink saturated, Victoria's cheap generation cannot fully arbitrage away the price spreads to either neighbour, which explains why NSW1 and SA1 are holding at $66–80/MWh while VIC1 sits near zero.

Heywood (V-SA) is not binding, flowing a modest 44.41 MW from VIC1 to SA1 against a 44.41 MW export limit — technically at its export cap but the constraint flag shows false, so this is more a scheduling outcome than a binding network limit. Basslink (T-V-MNSP1) is flowing 55.6 MW from TAS1 to VIC1, well within its 252.5 MW export capacity and not binding, despite TAS1 pricing at just $30.57/MWh, a level that would typically support higher exports north. This is capped by a live constraint: AEMO reclassified a lightning-related contingency on the Sheffield–George Town 220kV lines as credible from 05:19 AEST this morning, invoking constraint set T-GTSH_N-2 on Basslink's left-hand side, which is limiting flow well below the interconnector's physical capability. QNI (NSW1-QLD1) is flowing 125.32 MW from QLD1 into NSW1, modest relative to its 562.67/1078 MW range and not binding, consistent with the narrow $0.07/MWh spread between NSW1 ($66.03) and QLD1 ($65.96). Directlink (N-Q-MNSP1) is flat at 0 MW.

Several standing inter-regional transfer notices remain active across the Heywood/Murraylink/Basslink corridor, including outage-driven limit variations on the Tailem Bend–South East 275kV line, South Morang–Sydenham 500kV line, and Belalie–Davenport 275kV line, plus ongoing VIC region security-driven constraint automation (CA_SYDS series). These overlapping constraint sets are the likely structural cause of Murraylink's binding status and the capped Heywood flow, reinforcing SA1's price premium over VIC1 today.