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POWERLINE BUSHFIRE SAFETY PROGRAM - RESEARCH & DEVELOPMENT FUND COVERED CONDUCTOR GRANT PROGRAM - GUIDELINES

Date printed: 6 May 2023

1758280_1\C

DEDJTR – Energy Policy and Programs

PBSP : R&D Fund: Covered Conductor Grant Program - Guidelines

Contents1 Overview........................................................................................3

1.1 Program Background...........................................................................31.2 Research & Development Fund Objectives..........................................31.3 Program Governance...........................................................................3

2 Program Description.......................................................................3

3 Value to Victoria.............................................................................4

4 Program Stages..............................................................................54.1 Possible Pathways................................................................................64.2 Expression of Interest..........................................................................74.3 Stage 1 - Proof of Concept...................................................................74.4 Stage 2 - Market Ready.......................................................................7

5 Reporting.......................................................................................85.1 Progress reports..................................................................................85.2 Final report..........................................................................................85.3 Other reports.......................................................................................9

6 Intellectual Property.......................................................................9

7 Co-contribution...............................................................................97.1 In-kind Contribution.............................................................................9

8 Eligibility......................................................................................10

9 Meetings with the Department.......................................................10

10 Assessment...................................................................................1010.1 Clarifications......................................................................................1110.2 Market Ready Assessment Panel product demonstration and

briefing..............................................................................................11

11 Collaboration................................................................................11

12 Funding Agreement.......................................................................11

13 Further Information and Questions.................................................12

14 Reference material........................................................................12

Appendix 1 Evaluation Criteria.............................................................14

Appendix 2 Performance Specifications – Covered Conductor.................15

6 May 2023Final COMMERCIAL-IN-CONFIDENCE of 16



1 Overview1.1 Program Background

The Powerline Bushfire Safety Program (PBSP) Research & Development (R&D) Fund is a direct response to the Victorian Bushfires Royal Commission (VBRC) recommendation to support ongoing funding for an R&D Program to further reduce the likelihood that powerlines start bushfires.The Victorian Government committed to expend $10 million over five years to undertake research and development into further potential reductions in bushfire risk.

1.2 Research & Development Fund ObjectivesR&D Fund – Strategic ObjectiveImprove the cost effectiveness of the broader Program, and reduce unintended negative consequences, by obtaining new and better information.

To support the fulfilment of the strategic project objective, a number of tactical project objectives have been developed to guide project delivery.

R&D funds will be targeted to areas of research that allows the PBSP to respond to the recommendations of the VBRC and the Powerline Bushfire Safety Taskforce (PBST).

Funds will only be allocated to suitable Proponents / projects that demonstrate a capability to meet the R&D requirements.

The R&D project will add value to Victorian bushfire risk mitigation and electricity supply management beyond the scope of the PBSP.

1.3 Program GovernanceAll eligible submissions will be assessed by the Department as well as an expert panel.Projects recommended for funding by the panel require endorsement of the PBSP’s Program Control Board and final approval by the Minister for Energy and Resources.

2 Program DescriptionIn line with the PBSP R&D Fund’s objectives, the Powerline Bushfire Safety Program is looking for an overhead cable technology solution that will reduce the impact of bushfires starting from bare-wire Single Wire Earth Return (SWER) and 22kV conductors used in the Victorian electricity distribution system. Victoria currently has over 28,000 km of SWER and over 60,000 km of high voltage 22kV across the state, which are predominantly bare-wire.To reduce the likelihood of bushfires, the PBSP is also committed to expend $200 million over ten years to replace bare electricity distribution lines in the areas of highest bushfire risk in rural and regional Victoria through its Powerline Replacement Fund (PRF).




Currently around half of these conductors that are being replaced through the PRF are being undergrounded. Using covered conductor to replace the bare-wires instead of undergrounding will be a significantly cheaper option.A new, innovative cost effective method for treating high voltage powerlines, which would fit within the existing infrastructure and have minimal impact on the current installation methods, will improve the PRF and overall PBSP outcomes, potentially enabling a larger amount of treated conductor to be deployed in high bushfire risk areas.A covered conductor for this R&D project is a 22kV or 12.7kV overhead cable that is able to maintain its insulating properties with a tree or tree branch resting on the covered conductor cable, or if the cable is in contact with the ground or other earthed metallic object, for reasonably long periods such as days or preferably weeks while in normal service.The cable will preferably be a direct replacement for the existing bare-wires and alternative innovative solutions will be considered. Cable that includes a screen will also be considered provided that it can approximately achieve the required span distance for a taught strung conductor for each of the bare conductors to be replaced.

NOTE: If you have an alternative solution regarding high voltage distribution that does not fit within the program parameters then please contact the Department directly on [email protected].

3 Value to VictoriaThe Victorian Government is committed to:

promoting employment and business growth by expanding market opportunities for local industry;

providing contractors with increased access to, and raised awareness of, local industry capability;

exposing local industry to world's best practice in workplace innovation, e-commerce and use of new technologies and materials; and

developing local industry's international competitiveness and flexibility in responding to changing global markets by giving local industry a fair opportunity to compete against foreign suppliers.

The use of local suppliers and resources is encouraged, and Proponents should make clear in submissions how the project will benefit Victoria, including the use of local resources as well as any proposed future production and distribution. This includes considering how your product/s, if successfully developed and deployed, might result in job creation in Victoria, and/or export revenue to your company or other Victorian based companies. NOTE: this will be considered as part of the project assessment at all stages.

4 Program StagesThe Program comprises two stages which are outlined below.




Proponents can apply for any of these stages through an Expression of Interest process which will be open for 6 weeks.Note that the dollar amounts listed in the table below are per grant.

Stage No

Stage Title Funding Amount(per grant)

Timeline

1 Proof of Concept Up to $200,000 12 months

2 Market Ready Up to $500,000 6 months

Proposals will compete on an equal basis, with no preference given to any eligible type or technology solution.

Funding will be offered for all of the Program stages, noting that Proponents can enter at any stage. For example, a company may have a product that has been developed and is ready to be released to the market but still requires assistance to undertake some final testing on a live electricity distribution network, so could be offered funding through the Market Ready stage, whereas another company may still be at the prototype development stage and so would enter at the Proof of Concept stage.

It is entirely at the PBSP’s discretion as to how many and which Proponents are offered funding and for what stage/s.

Funding may be withheld and the grant terminated if there is clear evidence that the project is not viable, there is a repeated failure to deliver on project milestones or to provide the agreed resources.

It is not automatic that a grant Proponent progresses from the Proof of Concept stage to the Market Ready stage. This decision will be made by the PBSP on the viability of the project going forward, based on project reports as well as technical and commercial assessments.




4.1 Possible PathwaysThe table below shows the two potential pathway options available.




4.2 Expression of InterestThrough an Expression of Interest (EOI), Proponents can submit an application proposing an innovative solution to the requirements detailed in Appendix 2 – Performance Specifications – Covered Conductor for either the Proof of Concept or Market Ready stages.Priority will be given to Proponents that offer a cost effective, solution-based technology / system that can be deployed to the Victorian distribution electricity system.EOIs will be assessed competitively by an expert panel.Proponents must complete all parts of the Application Form available from the Business Victoria website at http://www.business.vic.gov.au/coveredconductor.

APPLICATIONS CLOSE AT 5.00 PM (AEST) ON MONDAY, 23 May 2016.

4.3 Stage 1 - Proof of ConceptFor the purpose of this grant Program, a Proof of Concept is defined as:

a working prototype of the technology which demonstrates that the solution will work as intended.

Funding under this stage is awarded to the proponent to undertake research and development to Proof of Concept stage for up to 12 months. The Proof of Concept project leads to a working demonstration of the developed product that is able to be deployed in the Victorian electricity network.Note that successful completion of the Proof of Concept does not guarantee the Proponent for Stage 2 – Market Ready funding.

4.4 Stage 2 - Market ReadyFor the purposes of this grant, Market Ready is defined as:

a fully developed product which only requires testing on the Victorian live electricity distribution network to ensure system compatibility and to identify and resolve any final issues relating to performance. This is designed to supply confidence to the market that it is a viable product for Victorian distribution networks and environmental conditions. This testing will require the involvement of an electricity distribution business. Once the testing is complete, the product should have all the evidence required to release it to the market.

A Market Ready project can be funded either: as a follow on from a successful Proof of Concept which has already been

funded through the Program and has been assessed by the Department as being suitable to receive further funding for the Market Ready stage; or


http://www.business.vic.gov.au/coveredconductor



through directly applying to the Program for funding under the Market Ready stage. It is required that the Proponent has already developed the Proof of Concept outside the Program.

To be eligible to apply for funding under the Market Ready stage, the Proponent will be required to provide evidence that a Victorian distribution business is interested in testing the product on its network.The activities funded in the Market Ready stage could include sourcing manufacturers, a clinical trial and minor product adjustments as a result of the trial.

5 Reporting5.1 Progress reports

The Proponent will be required to submit Progress Reports throughout the period of the project, as agreed to with the Department. A template will be made available (see clause 12.1 and Schedule 5 – Reports in the Funding Agreement), which includes at a minimum:

a description and analysis of the progress of the project to date; a clear summary of work undertaken in the period to which the Progress

Report relates; identification of the Project Milestones and timeframes met during the period

to which the Progress Report relates; a statement of whether the project is proceeding within budget, and if not,

an explanation of why and actions that will be taken by the Proponent to address this; and

an income and expenditure statement for all funds relating to the project received to date and compared to the overall budget.

5.2 Final reportAt the end of the project a Final Report will be required (see clause 12.2 and Schedule 5 – Reports in the Funding Agreement).This is a stand-alone document in two parts:

One that can be used for public information dissemination purposes on the operation, mechanisms and processes employed by the Proponent in performing the project activities and achieving its objectives; and

One that will be kept confidential and will address:- the objectives;- the deliverables;- the expected outcomes;- future outlook; and - appropriateness of the approaches and methodology.




5.3 Other reportsAt the Department’s request, the Proponent must also provide any additional oral or written information or documentation that explains details of its performance throughout the grant period.

6 Intellectual PropertyThe Proponent will own all Intellectual Property (IP) developed through all stages of the project, including the content provided in milestone completion and final reports and will be free to commercialise the IP as it sees fit.The Victorian Government will negotiate a licence to access the Proponent’s solution through the Proof of Concept and Market Ready agreements. Details around the licensing of IP to the Victorian Government will be articulated in the relevant agreements.Any existing or background IP will be detailed in a signed schedule prior to project commencement.

7 Co-contributionProponents are required to supply a minimum of 50% co-contribution to the project. This co-contribution is to be made up of at least 50% cash and remainder as an in-kind contribution.See table below showing three examples on how this co-contribution might work.

PBSP R&D Grant

Proponent cash contribution (compulsory)

Proponent In-kind contribution

TOTAL PROJECT BUDGET

$150,000 $75,000 $75,000 $300,000$200,0000 $150,000 $50,000 $400,000$100,000 $50,000 $50,000 $200,000

7.1 In-kind ContributionAn in-kind contribution is a non-monetary contribution in the form of project resources to the project including personnel, equipment or such other items agreed by the Department from time to time.The value of in-kind contributions must be expressed in terms of their reasonable cost or monetary value directly attributable to the Proponent and must be certified by the chief financial officer (or other senior authorised officer approved by the Department) of the Proponent.The following items are generally ineligible as in-kind contributions;

sunk costs of background technology; intellectual property brought to the project; salaries and costs of management activities not directly related to scientific

and technical contributions to the project; and indirect support costs such as general infrastructure costs and overhead.




8 Eligibility To be eligible to apply, Proponents must:

Be a non-tax-exempt company incorporated in Australia under the Corporations Act 2001 OR a registered research institute;

Have an Australian Business Number (ABN) Have access to, or the beneficial use of, any IP necessary to carry

out the project; Undertake not less than 80 per cent of the R&D work in Victoria for

the duration of the project; and Have the principal investigator based in Victoria for the duration of

the Proof of Concept project. Partner with a Victorian distribution business to test the product on

its network - Market Ready project only.

9 Meetings with the DepartmentThe Department may offer Respondents the opportunity to meet with the Department before the Closing Date to discuss any queries in relation to the preparation and expected outcomes of its Application, the Application process and the broader Program.These meetings:

are intended to clarify any issues about the Program; will be available via tele or video conferencing to Respondents unable to

meet face-to-face; must occur at least seven days prior to the Closing Date; and will not form part of the Department’s evaluation process.

Nothing discussed during a meeting between the Department and a Respondent may be relied on by the Respondent unless confirmed in writing by the Department.

10 AssessmentEOIs will be assessed competitively by an expert panel. For details of Assessment Criteria for each stage see Appendix 1 – Assessment CriteriaAs part of the assessment process, the Department may:

request further information or clarification (see 10.1) of an Application; require Respondents to attend an interview where they may be called to

provide a presentation on their proposal and to discuss their Application (for Market Ready see 10.2). These interviews will be available via tele or video conferencing to Respondents unable to meet face-to-face; and/or

request a demonstration of the solution or site visit (for Market Ready see 10.2).




10.1 ClarificationsThe Department may at any time during the Application process, request additional information concerning any part of an Application and request clarifications of an Application.The Department reserves the right, in its absolute discretion, to enter into any discussion or written communication with any Respondent to seek clarifications and additional information to enable evaluation of an Application without undertaking similar discussions or written communications with any other Respondent.Respondents must provide any additional information within a reasonable time period as specified by the Department. The Department may in its absolute discretion reject an Application from a Respondent that fails to provide the additional information within the required time period.

10.2 Market Ready Assessment Panel product demonstration and briefingAs part of the assessment process all Proponents who apply for Market Ready funding will be required to make a presentation and provide an onsite demonstration to the Assessment Panel.The Department will contact individual proponents directly to organise these appointments.

11 CollaborationCollaboration is encouraged. The lead organisation can choose to collaborate with another business enterprise, a university or other publically funded research institute. All collaborations must include at least one business that is capable of commercialising the final product. The total contribution to the Proof of Concept project from the collaboration partners cannot exceed the value of 30 per cent of the total project grant.

12 Funding AgreementSuccessful Respondents will be required to enter into a binding Funding Agreement with the State. The funding agreement includes the terms of the funding, monitoring, evaluation and reporting processes required by DEDJTR to ensure that the project is well managed.Opportunities to make variations to the templates are limited and will only be accommodated in exceptional circumstances.A letter from the Minister for Energy and Resources will be issued to each Respondent selected for funding under the Program. The funding offer in the Minister’s Letter of Offer is subject to execution of a Funding Agreement within a period of up to two months as specified by the Department in the Minister’s Letter of Offer. Failure to execute in this time period may result in withdrawal of the funding offer. The Minister’s Letter of Offer may list other conditions of funding.

13 Further Information and QuestionsGeneral information on the Powerline Bushfire Safety Program can be found at http://www.energyandresources.vic.gov.au/energy/safety-and-emergencies/powerline-bushfire-safety-program


http://www.energyandresources.vic.gov.au/energy/safety-and-emergencies/powerline-bushfire-safety-program




Any questions regarding the Application Process or the Covered Conductor Grant Program can be made in writing to the Program contact via the following email address [email protected] questions will be considered if lodged up to 7 days prior to the closing date.Respondents acknowledge and agree that:

if the Department provides additional information to a potential Respondent, it may issue a copy of this additional information to each of the other potential Respondents (where the Department provides additional information to other potential Respondents, such information will be deemed to form part of this Application Guidelines); and

any information provided by the Department in response to any question raised by the potential Respondent may also be provided to all Respondents via a Program specific ‘Frequently asked Questions’ web page.

14 Reference materialReferences Link to document

Powerline Bushfire Safety Taskforce http://www.esv.vic.gov.au/Portals/0/About%20ESV/Files/RoyalCommission/PBST%20final%20report%20.pdf

Powerline Bushfire Safety Program http://www.energyandresources.vic.gov.au/energy/safety-and-emergencies/powerline-bushfire-safety-program

Victorian Bushfires Royal Commission http://www.royalcommission.vic.gov.au/Commission-Reports.html

Acronyms and Key Terms Description

ABC Medium Voltage “Aerial Bundled Cables” are overhead powerlines using several insulated phase conductors bundled tightly together, usually with a bare neutral conductor.

Covered Conductor Covered Conductor is a 22kV or 12.7kV overhead cable that is able to maintain its insulating properties with a tree or tree branch resting on the covered conductor cable, or if the cable is in contact with the ground or other earthed metallic object, for reasonably long periods such as days or preferably weeks while in normal service.

DEDJTR Department of Economic Development, Jobs, Transport and Resources

EOI Expression of Interest

ESV Energy Safe Victoria

PBSP Powerline Bushfire Safety Program6 May 2023

Final COMMERCIAL-IN-CONFIDENCE of 16

http://www.royalcommission.vic.gov.au/Commission-Reports.html

http://www.royalcommission.vic.gov.au/Commission-Reports.html




http://www.esv.vic.gov.au/Portals/0/About%20ESV/Files/RoyalCommission/PBST%20final%20report%20.pdf





Acronyms and Key Terms Description

PBST Powerline Bushfire Safety Taskforce

PRF Powerline Replacement Fund is a PBSP $200 million Program to replace bare-wire powerlines in the highest risk fire areas with insulated overhead, underground powerlines or new conductor technologies.

R&D Research & Development

SWER Single Wire Earth Return is a 12.7kV single phase electrical power distribution system.

VBRC Victorian Bushfires Royal Commission




Appendix 1 Evaluation CriteriaProof of ConceptCriteria Responses Weighting

1. Proposed solution to the problem

1.1 How the solution addresses the problem1.2 Credibility of the solution

20%

2. Key parties’ commitment 2.1 Partnership structure2.2 Organisation experience2.3 Financial commitment

20%

3. Project management 3.1 Project governance3.2 Key personnel3.3 Risks3.4 Project delivery strategy3.5 Budget

20%

4. Technical Feasibility 4.1 System design4.2 System performance4.3 Reuse of existing infrastructure4.4 System manufacture4.5 System installation4.6 Maintenance and defect repair

30%

5. Value to Victoria 5.1 Knowledge and skills transfer5.2 Job creation

10%

Market ReadyCriteria Responses Weighting

1. Proposed solution to the problem

1.1 How the solution addresses the problem1.2 Credibility of the solution

10%

2. Key parties’ commitment

2.1 Partnership structure2.2 Organisation experience2.3 Financial commitment

20%

3. Project management 3.1 Project governance3.2 Key personnel3.3 Risks3.4 Project delivery strategy3.5 Budget

15%

4. Technical Feasibility 4.1 System design4.2 System performance4.3 Reuse of existing infrastructure4.4 System manufacture and distribution4.5 System installation4.6 Maintenance and defect repair

40%




5. Value to Victoria 5.1 Market opportunity5.2 Knowledge and skills transfer5.3 Job creation

15%




Appendix 2 Performance Specifications – Covered Conductor

The Performance Specifications is available as a separate document on the BusinessVic site.


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