OREANDA-NEWS.  Australia's New South Wales (NSW) state government has asked for expression of interest for the lease of state-owned transmission business TransGrid. The government plans to lease 49pc of TransGrid for 99 years, which is effectively a sale.

Interested parties will have until 14 July to lodge their expression of interest, NSW treasurer Gladys Berejiklian said.

TransGrid is the first of the power network assets that the NSW government plans to lease on a long-term basis. It plans to lease power distributors AusGrid, Endeavour Energy and Essential Energy. These are the last of NSW's large state-owned energy assets that will be up for sale, with the state already having sold its coal and gas-fired power generation assets. More than 80pc of electricity in NSW is generated by coal-fired plants.

"The poles and wires transaction will unlock A$20bn ($15.4bn) which will be invested into new roads, rail, hospitals and schools," Ms Berejiklian said.

Legislation passed earlier this month means that successful bidders must ensure that total network charges for the 2018-19 fiscal year ending 30 June will be lower than charges for 2013-14, the NSW government said.