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South Australian Energy Transformation - Project Specification Consultation Report

07/11/2016
Market Network Service Provider
StageFirst Stage
ConvenorAEMO NSP
Initiated07/11/2016
Accepting submissions?No
Submissions close06/02/2017

Economic investment test to facilitate energy transition

ElectraNet, in consultation with other transmission network service providers (TNSPs), has commenced an economic cost benefit assessment to explore options that can help to facilitate South Australia’s energy transition. The Regulatory Investment Test for Transmission (RIT-T)1  will be applied to this assessment. This report begins the formal consultation part of the RIT-T process.

The identified need for this RIT-T is driven by allowing greater competition between generators in different regions, improving security of electricity supply in South Australia, facilitating the transition to lower carbon emissions and the adoption of new technologies.

Four interconnector options proposed to be assessed

ElectraNet has identified four credible network options, all of which involve constructing a new interconnector between South Australia and a neighbouring state.  The four interconnectors under consideration are

  • Central SA to Victoria Interconnector (nominally Tungkillo to Horsham, and beyond)
  • Mid North SA to NSW (nominally Robertstown to Buronga, and beyond)
  • Northern SA to NSW interconnector (nominally Davenport to Mt Piper)
  • Northern SA to Queensland interconnector (nominally Davenport to Bulli Creek)

Non-network options will also be evaluated

Non-network options can also provide benefits to the market and help with energy market transition, particularly in relation to system security.

Non-network options could provide inertia, fast frequency response and/or voltage response capabilities to increase interconnector capacity and so that supply disruptions could either be avoided or substantially reduced.

Technological advances with respect to controllable demand and storage mean that there may be a broader range of potential non-network options than previously was the case.

ElectraNet is interested to hear from non-network proponents

ElectraNet is interested to hear from potential proponents of non-network options. ElectraNet will use the information provided in submissions to further develop non-network options for inclusion in the next stage of the RIT-T assessment process.

Next steps

ElectraNet welcomes written submissions from registered electricity market participants and interested parties on the PSCR, which is available for download from www.electranet.com.au.

Submissions are due on or before Monday 6 February 2017. Submissions are particularly sought on the investment options presented and from proponents of potential non-network options.

Submissions should be emailed to consultation@electranet.com.au.

A Project Assessment Draft Report (PADR), including a full quantitative assessment of the costs and benefits of each of the options being considered, is expected to be published mid-2017.

 

[1]           The RIT-T is the regulatory cost benefit test administered by the Australian Energy Regulator (AER)

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