* Pricetag A$10.3 bln vs A$8 bln analysts' f'cast
* Buyers from Australia, Canada, Abu Dhabi, Kuwait
* State Grid of China was considered favourite
* Proceeds to pay for railways, roads and debt repayment (Updates throughout, adds comment)
SYDNEY, Nov 25 (Reuters) - A consortium of Australian, Canadian and Middle Eastern companies will pay A$10.26 billion ($7.46 billion) for an Australian electricity network, as part of the country's biggest privatisation programme, officials said on Wednesday.
The group, led by Australia's Hastings Funds Management, paid significantly above the A$8 billion expected by analysts to beat rival bidders including State Grid of China Corp for the lease of New South Wales state's TransGrid network.
"This is a stunning result," New South Wales Premier Mike Baird told reporters.
Hastings, owned by Westpac Banking Corp WBC.AX , teamed up with Australian electricity firm Spark Infrastructure SKI.AX , sovereign fund Abu Dhabi Investment Authority, Kuwait's Wren House Infrastructure and Canadian pension fund investor Caisse de depot et placement du Quebec.
The surprise choice of the Hastings-led group neutralises a potential public backlash to the sale of critical assets to Chinese-owned entities. Last month, the Northern Territory government sold Port of Darwin to Chinese interests, sparking an outcry from opposition politicians and expressions of concern from major ally the United States.
China's State Grid, in a consortium with locally-listed Macquarie Group Ltd MQG.AX , had foreign investment clearance and was widely considered the bid favourite despite concerns about the security of a network that carries sensitive government data.
The sale also underscores high global demand for Australian infrastructure, as roiling global equity and commodities markets drive investors to seek assets with regulated and predictable revenue. TransGrid runs 12,000 kms (7,500 miles) of transmission lines from one side of the state of 7.5 million people to another.
The high price suggests investor confidence that Australia's energy network industry will cope with impending change as electricity retail volumes decline with the emergence of rooftop solar and low-cost batteries.
The deal is the first of three electricity privatisations by the NSW government, with the total sale price expected to top A$20 billion.
Sydney-listed Spark, which is 8 percent owned by Hong Kong's CKI Infrastructure Holdings Ltd 1038.HK , said it planned to raise A$405.5 million via a capital raising at A$1.88 per share to help fund its 15 percent equity contribution to the deal. The remainder of the A$734 million would be funded by debt and cash, it said. ($1 = 1.3757 Australian dollars)