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TRANSCRIPT
Powering Sydney’s Future
Workshop Summary – January 2017
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
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
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
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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
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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
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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.
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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
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:
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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.