10
Powering Sydney’s Future Workshop Summary January 2017

Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

  • Upload
    others

  • View
    3

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

Powering Sydney’s Future

Workshop Summary – January 2017

Page 2: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

2 Powering Sydney’s Future Workshop Summary 2016

Contents

1. Powering Sydney’s Future ...................................................................................................................... 3

2. Workshop summary ................................................................................................................................. 3

3. Objectives.................................................................................................................................................. 3

4. Presentations ............................................................................................................................................ 3

5. Activities .................................................................................................................................................... 4

6. Key themes and responses ..................................................................................................................... 5

6.1 Table of key themes and responses ................................................................................................ 5

7. Feedback and Recommendations .......................................................................................................... 9

Page 3: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

3 Powering Sydney’s Future Workshop Summary 2016

1. Powering Sydney’s Future

Powering Sydney’s Future aims to secure a safe, reliable and economical power supply for homes,

businesses and other electricity users in the Inner Sydney area. TransGrid and Ausgrid are working together

to find the best solution by considering the environment, community, cost and delivery timeframes to ensure

the continued supply of power to this vital economic hub of Sydney.

2. Workshop summary

On Monday 28 November 2016, TransGrid and Ausgrid

facilitated a stakeholder workshop for Powering Sydney’s

Future at Mercure Sydney. The aim of the workshop was to

re-engage and continue the conversation with stakeholders,

some of whom were involved in Powering Sydney’s Future in

2014, with updated information.

In total, 92 stakeholders from government, energy suppliers

and regulators, large power users, industry and others

attended the workshop and participated in a range of

workshop activities.

Below are details of the workshop, including:

Objectives

Presentations

Activities

Key themes raised and responses

3. Objectives

The workshop was an opportunity to reintroduce the Powering Sydney’s Future project and provide updated

information to stakeholders. It was also an opportunity for stakeholders to discuss ideas and explore the

feasibility of potential network and non-network solutions.

The objectives of the workshop were to:

Inform stakeholders with new information about the context and drivers of the Powering Sydney’s Future project.

Continue the conversation with stakeholders who were involved in 2014. Seek initial views and discuss potential network and non-network solutions.

4. Presentations

Five presentations were given by senior TransGrid, Ausgrid and GHD representatives.

1. Gerard Reiter, TransGrid’s Executive General Manager, Asset Management opened the workshop by highlighting the importance of the Powering Sydney’s Future project and the partnership between TransGrid and Ausgrid to find a reliable and efficient solution to support Sydney’s long-term and

Page 4: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

4 Powering Sydney’s Future Workshop Summary 2016

growing power needs.

2. Matthew Webb, Ausgrid’s Manager Network Risk and Planning explained Ausgrid’s drivers such as demand forecasting and ageing assets.

3. Anthony Englund, TransGrid’s Group Manager, Investment Strategy and Solutions then continued the conversation with TransGrid’s drivers such as Cable 41 and reliability. Anthony also explained the Reliability Standards and Regulatory Investment Test - Transmission (RIT-T) process.

4. Nalin Pahalawaththa, TransGrid’s Group Manager, Power System Analysis explained the criteria measured against for the different route selections.

5. David Bones, GHD’s Service Group Manager – Power, Strategy and Economics discussed the possibility of non-network solutions such as batteries and standby generators.

To watch these presentation or to access the powerpoint slides, visit www.transgrid.com.au/powering-sydney

5. Activities

Stakeholders were given an opportunity to raise their issues, concerns or comments about Powering

Sydney’s Future through four activities implemented at the workshop.

Activity 1 used an interactive real time poll to gauge

stakeholder’s knowledge and understanding of the project,

aim for attending the workshop and the key priority for Inner

Sydney’s energy supply.

Activity 2 invited stakeholders to identify three issues or

concerns they would like addresses at the workshop.

Activity 3 followed presentations 2 and 3 and asked for

stakeholder to brainstorm three priorities in finding a

solution to powering Sydney.

Activity 4 followed presentation 4 and 5 and asked stakeholders to brainstorm three important

factors, for them or their organisation, when considering solutions.

In addition to the above activities, dedicated time was allocated to a discussion on non-network solutions.

This was an opportunity for all stakeholders to ask speakers or voice their thoughts and opinions on possible

non-network options. In particular, the discussion considered:

Potential non-network ideas

Challenges and barriers

Incentives

Page 5: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

5 Powering Sydney’s Future Workshop Summary 2016

6. Key themes and responses

The following are responses to the key themes raised by stakeholders during the workshop.

6.1 Table of key themes and responses

Key theme Details Response

Understanding the

Powering Sydney’s Future project

Overview of the project

Accuracy of demand

forecasting and details on the

‘trigger point’

What research has been

undertaken to maximise the life

of new in ground cables?

Has the integrity of the cables

been tested for an end date?

What is the value in deferring

the project?

Powering Sydney’s Future is a joint

engagement initiative between

Ausgrid and TransGrid to identify the

best solution to meet the future

energy needs in the Inner Sydney

area.

The solution may be a network or

non-network solution, or a

combination of both.

TransGrid is currently seeking

proposals for non-network solutions to

solve the area’s energy needs or at

least defer the need to implement a

network solution.

If a network solution is required, it

would involve building a new

underground cable between

TransGrid’s Rookwood and

Beaconsfield Substations.

Consultant GHD has undertaken an

independent audit of Ausgrid’s

demand forecasts and published the

results in the Ausgrid’s 2016 Inner

Sydney Demand Forecast in October

2016.

The report intended to inform

stakeholders about the peak demand

forecasts, the performance of those

forecasts and the measures

implemented to improve forecast

performance.

It concluded Ausgrid’s Inner Sydney

demand forecast provided a

reasonable estimate of the potential

future demand in the area and is

appropriate for use in planning

transmission network augmentations.

Research in the following areas has

been undertaken to ensure maximum

longevity for an underground cable

option:

o New cable technology -

not oil filled.

o On-line condition

Page 6: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

6 Powering Sydney’s Future Workshop Summary 2016

monitoring with a real

time rating system

o Consideration of new

alternative and more

appropriate bedding and

backfill materials

o Better monitoring and

controls of cable

installation practices

o Experience gained from

recent XLPE cable

installations

In regard to the integrity of the cable

and its estimated end-of-life date, a

section of TransGrid’s cable 41 has

been removed from an area expected

to be in one of the worst conditions

along the cable route. Inspection and

testing of the cable has been carried

out with further analysis to be carried

out during January 2017 to assess

and determine its overall residual life.

The annual deferral value has been

estimated at $12.4 million and is

based on deferring Stage 1 only. It is

important to note this is an estimate

only and may change as the project

cost is refined or financing charges

vary.

Further details are provided in Section

4.2: Indicative size and duration of

non-network solutions for deferral in

the Project Specification Consultation

Report (PSCR).

The drivers What is the importance of

existing Ausgrid cables?

Problems with Cable 41 and its

effects on Ausgrid’s cables.

What analysis has been done

by Ausgrid on how long they

can defer for?

What is the value proposition

for end users?

The existing Ausgrid cables are an important of the electricity network, reinforcing supply to the Inner Metropolitan area and sharing the load with the existing two 330 kV TransGrid cables from Sydney South.

Due to the poor condition of the backfill surrounding Cable 41, TransGrid has had to de-rate the cable twice. It was most recently de-rated in 2016 to 426 MVA. This means reliance on Ausgrid to supply the Inner Metropolitan load has now increased.

TransGrid and Ausgrid have jointly analysed the risks associated with deferring work to address the deteriorating cables. Details are available in the Project Specification Consultation Report (PSCR). Further analysis will be performed and details will be included in the Project

Page 7: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

7 Powering Sydney’s Future Workshop Summary 2016

Assessment Draft Report (PADR).

As presented in the PSCR, the value for customers includes increased supply reliability and reduction in expected unserved energy, and less environmental risks due to aging cables.

The process to a solution Need for more detail around

expression of interest process.

Understanding the policies and

regulation including the RIT-T

process.

TransGrid is currently seeking

Expressions of Interest (EOI) from

non-network service providers to help

meet the future energy needs of Inner

Sydney.

Details regarding the minimum level

of support required are detailed in the

Project Specification Consultation

Report (PSCR) and on TransGrid’s

website.

The closing date for EOIs has been

extended to 3 February 2017,

following feedback from a number of

potential proponents that an extended

submissions period would allow them

to present more detailed proposals.

RIT-T Process: The Regulatory

Investment Test for Transmission

(RIT-T) is a process required under

the National Electricity Rules if a

network option is proposed as part of

a solution and its cost is greater than

$6 million.

The process is designed to inform

stakeholders of the investment need

and potential network or non-network

options to address it, test the market

for alternative solutions and advise

stakeholders of the outcome of the

selected solution.

Further detail is available at

https://www.transgrid.com.au/powerin

g-sydney-rit-t

IPART Reliability Standards: The

IPART Reliability Standards has been

finalised, but the consultation on the

process of demonstrating compliance

is yet to commence. A precise needs

date cannot be confirmed until IPART

completes this phase of its process.

Ahead of IPART completing its

compliance consultation, a firm date

based on benefits (including avoided

risks) exceeding costs has been

determined as set out in the PSCR.

This date is independent of the IPART

reliability standard.

Page 8: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

8 Powering Sydney’s Future Workshop Summary 2016

Planning Approval: The proposed

network solution would be subject to

assessment and determination by the

Minister for Planning under Part 5.1 of

the Environmental Planning and

Assessment Act 1979. An

Environmental Impact Statement

(EIS) would be prepared for the

project and the EIS would also give

further consideration to the project

need (in light of any proposed

alternative solutions identified) and

the need date requirements.

Route Selection Process: A route

selection process is being completed

to determine the preferred route for a

network solution. Route options are

evaluated across broad categories

such as:

o environmental and land use implications during construction and operation;

o potential community and stakeholder impacts/response; and

o engineering, cost and program implications

Network options What would be the generating capacity if a new 330 kV cable from Rookwood Road to Beaconsfield was to be installed? What are the operating requirements? How will it be valued? How commercially viable is this solution? What is the probability of cable failure?

Understanding the geographic impact of potential network routes along with the social and environmental impacts.

Can we use existing infrastructure (above ground) rather than a cable which is costly to maintain? Are there other options for installation options besides burying?

Has a decentralised network been considered?

Supply capacity to the Inner Metropolitan area will increase with the installation of a new 330 kV cable from Rookwood Road to Beaconsfield. As presented in the PSCR, the expected unserved energy will significantly reduce as a result (compared to not taking any action).

The Project Specification Consultation Report (PSCR) presents more details on the evaluation, operating requirements and details on the cable failures.

TransGrid has engaged independent consultant AECOM to develop a preferred route for the cable, which will consider any potential social, environmental and economic impacts.

TransGrid will endeavour to utilise existing road corridors and public reserves wherever possible. In the event private property may be affected, TransGrid will liaise with directly affected property owners during the finalisation of the preferred route.

Building a 330 kV overhead transmission line would be a significantly difficult and complex option in a high density area like Sydney. Underground cables are

Page 9: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

9 Powering Sydney’s Future Workshop Summary 2016

considered as the optimum method of supplying electricity to high density areas and are considered to be the only feasible network option.

Yes, TransGrid and Ausgrid are seeking proposals on non-network solutions which could include decentralised options, such as having local generation, battery storage, and demand management.

Non-network options Can TransGrid and Ausgrid

work with the NSW

Government or the Energy

Efficiency Scheme? What are

the opportunities around

demand-side optimisation?

How do alternative and non-

network solutions fit into the

RIT-T timeline process?

Overview of non-network

solutions including: options,

incentive schemes, targets to

aim for, geographical

boundaries, regulatory

constraints, risks,

accountability.

TransGrid is willing to work with

proponents who are able to put

forward viable, cost-effective non-

network proposals.

We are committed to finding a non-

network option which may defer the

need for a network solution to meet

the future energy needs of the Inner

Sydney area.

Submissions close on 3 February

2017 and each submission will be

given careful consideration.

TransGrid has called on non-network

proposals as part of the RIT-T

process. The submission period has

been extended to 3 February 2017 to

allow time for proponents to develop

and submit a robust proposal.

If a viable non-network option is found

through this process, it may have the

potential to defer the need for a

network solution. It is also likely that a

non-network solution would need to

be complimented with a network

solution to meet the area’s future

electricity needs.

Due to the lengthy timeframe required

to plan and construct a network

solution, we must begin early planning

now to ensure we are able to meet

the current needs date.

TransGrid engaged independent

consultant GHD to develop the

Powering Sydney Project Non

Network Options report, which

provides an overview of potential non-

network solutions. The report is

available on the TransGrid website.

7. Feedback and Recommendations

Overall stakeholders found:

Page 10: Powering Sydney’s Future - TransGrid...7 Powering Sydney’s Future Workshop Summary 2016 Assessment Draft Report (PADR). As presented in the PSCR, the value for customers includes

10 Powering Sydney’s Future Workshop Summary 2016

The workshop useful in providing updated information on the Powering Sydney’s Future project.

They had enough allocated time in the workshop to contribute to the conversation.

There was enough network solutions provided but would have liked more information on non-network

solutions.

Stakeholders were also asked about non-network solutions. Overall stakeholders:

Were interested in non-network solutions such as embedded generation, energy power storage,

voluntary curtailment of load, energy efficiency and solar options.

Wanted more information on non-network solutions that have had a credible impact elsewhere, more

clarification of the target, incentives and schemes to be involved in.

For more information or updates on Powering Sydney’s Future, visit www.transgrid.com.au/powering-sydney.