TransGrid in South West NSW Appendix "J" About TransGrid - - PowerPoint PPT Presentation

TransGrid in South West NSW

Appendix "J"

About TransGrid

TransGrid is the operator and manager of the NSW transmission network. NSW is the largest region in the National Electricity Market, connecting QLD and VIC 32% of Australia’s population 32% of energy in the NEM Our network comprises: 13,000 km transmission lines and cables 104 substations 4,000 km optical fibre

Sydney

Appendix "J"

TransGrid’s price continues to fall

8 9 10 11 12 13 14 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 Average Price $/MWh ($ June 18)

Average 2009/10-2013/14 Average 2014/15-2017/18 Average 2018/19-2022/23 Final Decision

Earlier Regulatory Period Previous Regulatory Period Current Regulatory Period

5.2% 7.2% Source: TransGrid data

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Transmission prices are lower than in 1995

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Price contributions to consumer bills

Source: AEMC and TransGrid data

1.26 1.29 1.24 1.09 1.05 1.05 13 12.63 10.77 7.95 11.43 11.19 4.67 4.24 1.42 1.66 1.65 1.71 6.74 8.44 8.24 7.93 11.46 14.63

2012/13 2013/14 2014/15 2015/16 2016/17 2017/18

C/KWH TransGrid Distribution Environmental Competitive market

eg AGL, EnergyAustralia, Origin Energy, Red Energy, Lumo, etc eg Essential Energy, Ausgrid, Endeavour Energy Appendix "J"

Demand is rising

Source: TransGrid

Rolling 12 Month Energy Usage (cumulative)

59 60 61 62 63 64 65 66 67 68 69 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 TWh 12 Mth Rolling Usage Appendix "J"

Objectives for the energy system

Source: The World Energy Council

RELIABILITY AFFORDABILITY EMISSIONS REDUCTION

• Australia’s energy system is undergoing a

period of immense change

• Solving the energy trilemma will remain a

key objective

• The transition to the energy system of the

future will need to be planned

• Transmission will play an essential role as a

platform for the connection and trading of large scale and geographically dispersed renewable generation

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Energy Supply is Changing

Source: Australian Energy Market Operator (AEMO)

5 10 15 20 GW Import Capacity Dispatchable Capacity Retirement Gap Liddell Vales Point Eraring Bayswater Mt Piper

NSW dispatchable generation

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Wind Farm Wind Farm Wind Farm Wind Farm Wind Farm Solar Farm X 2 Wind Farm Solar Farm Wind Farm Solar Farm Wind Farm Wind Farm Solar Farm Solar Farm In Development Being Delivered Solar Farm X 2 Solar Farm Wind Farm Solar Farm Solar Farm Wind Farm Solar Farm Solar Farm Solar Farm Solar Farm Solar Farm Solar Farm X 2 Solar Farm Completed Solar Farm Legend: Solar Farm Solar Farm

Victoria

Wind Farm Hydro Solar Farm Wind Farm Bioenergy Solar Farm Solar Farm Solar Farm

TransGrid’s current renewable pipeline

Solar Farm x 3 Solar Farm

SYDNEY METRO

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Connection enquiries in Southern NSW

• Currently more than 15,000MW of generation

enquiries across Southern NSW

• Network capacity of approximately 1,000MW
• Significant energy resources in the region

which network require investment development

• Regulated network expansion will remove

constraints and unlock potential

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• One of the Finkel Review recommendations
• Provides a co-ordinated approach to

incorporating renewable generation, supported by storage, into the grid as coal- fired plant ages and is retired over the next 20 years

• Three groups of investment are

recommended comprising:

• Group 1 - Immediate
• Group 2 - Mid-2020’s
• Group 3 - Mid 2030’s and beyond
• ISP Projects align with TransGrid’s

Contingent Projects submitted to the AER

Integrated System Plan

Source: AEMO Integrated System Plan Appendix "J"

ISP Stage 1 Projects

Minor NSW to QLD upgrade Reinforcement of Northern Network (QNI upgrade) – 2020 Minor VIC to NSW upgrade Pending commencement of AEMO’s VIC to NSW upgrade project RIT-T - 2020

Source: AEMO Integrated System Plan Appendix "J"

Medium NSW to QLD upgrade Further reinforcement of Northern Network (QNI upgrade) - 2023 SnowyLink North Reinforcement of Southern Network in response to Snowy 2.0 – 2025 RiverLink (SA to NSW upgrade) New South Wales to South Australia Interconnector - 2022 to 2025

ISP Stage 2 Projects

Source: AEMO Integrated System Plan Appendix "J"

SnowyLink South Connect north-west Victoria renewable zone to NSW network - 2034 Renewable Energy Zones Augmentation to support Renewable Energy Zones – post 2030

ISP Stage 3 Projects

Source: AEMO Integrated System Plan Appendix "J"

Why the ISP is important

• A more connected NEM will

facilitate increased competition, deliver lower prices and increase security as more intermittent generation enters the system

• Each part of the energy supply

chain will need to play their part to deliver reliability, affordability and emissions reduction

Source: AEMO Integrated System Plan (ISP) Appendix "J"

The NSW Government’s Transmission Infrastructure Strategy outlines three initiatives: 1. Boost interconnection with Victoria, South Australia and Queensland, and unlock more power from the Snowy Hydro Scheme. 2. Increase NSW’s energy capacity by prioritising Energy Zones in the Central West, South West and New England regions of NSW. 3. Work with other states and regulators to streamline regulation and improve conditions for investment.

NSW Transmission Infrastructure Strategy

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NSW Transmission Infrastructure Strategy

Source: NSW Department of Planning and Environment Appendix "J"

SA-NSW Interconnector Proposal

Source: ElectraNet Appendix "J"

SA-NSW Interconnector Proposal

Source: ElectraNet Appendix "J"

Thank you

More information: Andrew Lewis Andrew.Lewis@transgrid.com.au 02 9284 3357 Mitch Hume Mitchell.Hume@transgrid.com.au 02 9284 3631

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