Media Release
Pre-feasibility study of the Queensland - NSW power link indicates upgrade benefits
10 October 2005
Major electricity transmission entities, Powerlink Queensland and TransGrid (NSW), in presentations to National Electricity Market (NEM) participants on 7 and 10 October in Sydney and Brisbane respectively, revealed that pre-feasibility study results into an upgrade of the high voltage powerline linking the Queensland and New South Wales electricity networks provide encouragement to commence a formal joint feasibility study into upgrading the capacity of the Queensland/New South Wales Interconnector by almost 20 per cent.
Powerlink Chief Executive Gordon Jardine said the study showed an upgrade could provide economic benefits to the NEM by improving the reliability of power supply to both States, eliminating costly constraints on the existing interconnector, potentially reducing power station operating and investment costs across the NEM and lowering the wholesale price of electricity.
He said the study examined the benefits of increasing the capacity of the existing Queensland/New South Wales Interconnector (QNI) by up to 20 per cent.
"I must emphasise that this is a pre-feasibility study only. It's a green light for us to undertake a joint full feasibility study to determine whether the potential upgrade would be viable under the Australian Energy Regulators economic cost-benefits test," Mr Jardine said.
"It is also important to realise that this proposal does not involve building a new transmission line. It would mean installing new state-of-the-art equipment on the existing infrastructure to increase its transfer capability and utilisation, and to relieve the constraints that affect the QNI."
Mr Jardine said Powerlink and TransGrid would jointly carry out more detailed studies over the next year to scope the upgrade, assess its impacts on the existing interconnected transmission network and estimate its costs, before undertaking the Australian Energy Regulator's Regulatory Test.
"We are targeting 2009 as the completion date for the QNI upgrade, as the study indicates it would begin to deliver economic benefits to the NEM at that time," said Mr Jardine.
TransGrid Chief Executive Officer Kevin Murray said that since the QNI was completed in 2001 as a joint project undertaken by TransGrid in NSW and Powerlink in Queensland, with an initial targeted capability to transmit 500MW north and 1,000MW south, Powerlink and TransGrid had worked to continually increase the amount of electricity that could be safely and reliably transferred between the States.
"Currently the QNI is able to transport a maximum of 1,078MW southward to New South Wales, and 700MW northward to Queensland," Mr Murray said.
"Following the results of the preliminary findings the two organisations will now undertake extensive investigations to determine the actual increase in QNI capacity that can be achieved and determine its likely cost and whether the required investment is justified under the Australian Energy Regulator's Regulatory Test. The Regulatory Test would more accurately quantify the net benefits and also assess all identified non-network options and their associated net market benefits", Mr Murray said.
The QNI itself has already delivered substantial economic benefits which have more than covered the original $350 million cost of the infrastructure.
Ends
Note to Journalists - a more detailed summary of the QNI upgrade pre-feasibility study is available on the Powerlink website at
www.powerlink.com.au
or on the TransGrid we site at
www.transgrid.com.au
.
For more information contact:
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Melanie Edgar
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Joe Zahra
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About Powerlink Queensland:
Powerlink is a Government Owned Corporation, which owns, develops, operates and maintains a $2.8 billion high voltage transmission network that extends 1700km from north of Cairns to the New South Wales border. Powerlink's primary role is to provide a secure and reliable network to transport high-voltage electricity from generators to electricity distribution networks owned by Energex, Ergon Energy and Country Energy. Powerlink also transports electricity directly to large Queensland customers, such as aluminium smelters and to New South Wales via the NSW/Qld Interconnector.
About TransGrid:
TransGrid is a State Owned Corporation which owns, operates and manages the majority of the high voltage electricity across New South Wales through 12,016 km of high voltage transmission lines. TransGrid's high voltage electricity system also comprises 76 substations and power station switchyards. TransGrid's primary role is to provide a safe, reliable and secure transmission network which meets the needs of consumers in a commercially sound manner. TransGrid is the vital link between the generators of electricity and the distributors of electricity (e.g. EnergyAustralia, Integral Energy, Country Energy, Australian Inland Energy and ACTEW).