Our role in the electricity market
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Our role
Powerlink’s transmission network is the central link in the electricity supply chain between power stations (where electricity is generated) and electricity distributors (that deliver electricity to households and businesses) in Queensland.
How the supply chain works
Generation
Electricity is produced at power stations (generators) using renewable and non-renewable fuel sources, including coal, gas, water (hydro), biomass and wind.
Transmission
We transport the electricity from the power stations through our high voltage transmission network. Electricity leaves the power stations at a very high voltage so it can travel long distances efficiently.
As the electricity gets closer to where it will be used, its voltage is reduced to a lower voltage (110,000 to 132,000 volts) at our high voltage substations. In some cases, we transport electricity directly to some large Queensland customers, such as aluminium smelters.
Distribution to homes and businesses
Electricity distributors such as ENERGEX and Ergon Energy take the high voltage electricity from our substations and reduce its voltage through a network of transformers, overhead powerlines, underground cables and other equipment before it reaches connection points at homes and businesses.
Retail
When customers arrange to have electricity connected, they contact an electricity retailer who makes the appropriate arrangements and bills the customer for the electricity used. Some of the electricity cost billed to customers (typically about 8%) is given to us to pay for the development, operation and maintenance of the high voltage transmission network. The amount of revenue Powerlink receives is determined by the Australian Energy Regulator (AER).
