Overview

Transgrid has identified reactive margin shortfall (and voltage) issues in the Beryl area of Central New South Wales. These issues arise from current and projected demand in the downstream Essential Energy distribution network.

Transgrid is applying the Regulatory Investment Test for Transmission (RIT-T) to options for complying with reactive margin requirements at Beryl. This may involve new infrastructure to address demand in the area.

RIT-T process and submissions

Transgrid is required to demonstrate that the preferred option for complying with reactive margin requirements at Beryl will deliver the greatest net benefits to energy consumers. The net benefits delivered by the project are assessed using the Regulatory Investment Test for Transmission (RIT-T) administered by the Australian Energy Regulator (AER).

The RIT-T assesses network and non-network solution options from a technical and economic perspective by:

  • Informing stakeholders of the investment need and proposed options to address this need;
  • Testing the market for alternative and more efficient solutions;
  • Explaining to stakeholders the basis on which the preferred option has been selected.

Project Specification Consultations Report

In November 2024, we published a Project Specification Consultation Report (PSCR), the first stage of the RIT-T. The PSCR details the identified need to comply with reactive margin requirements at Beryl.

We consider that non-network solutions that can provide dynamic and static reactive support may be able to assist with meeting the identified need. We received Expression of Interest (EOI) responses from two parties regarding non-network solutions. At this stage, we are considering both responses to be confidential.

Next Steps

Following EOI responses, we will develop a Project Assessment Draft Report (PADR), the second stage of the RIT-T which will include full quantitative analysis of the proposed options and expected values of unserved energy across a range of scenarios and sensitivities.

We anticipate publication of a PADR between January and February 2026. Publication of the PADR will be followed by a six-week consultation period, during which we invite written submissions on the material contained in the PADR.