Expanding NSW-QLD Transmission Transfer Capacity

Expanding NSW-QLD Transmission Transfer Capacity

TransGrid, together with Powerlink, has published a Regulatory Investment Test for Transmission (RIT-T) Project Assessment Draft Report (PADR) on expanding Queensland to New South Wales transmission transfer capacity.
 
In November 2018, TransGrid and Powerlink published the RIT-T Project Specification Consultation Report (PSCR), which is available below. The PSCR detailed the need to increase the existing Queensland to New South Wales interconnector capacity and described the credible options to meet the need, including technical characteristics. In response to the PSCR, we received 7 public submissions that are also available below.
 
The PADR outlines how we have addressed the issues raised in submissions and explains the basis on which the preferred option has been selected. The PADR details the options, including non-network options developed by third parties, that were available to address the needs identified in the PSCR. It also compares the value proposition and recommends a preferred investment option to ensure the maximum benefit is received by producers, transporters and consumers of electricity in the market
 
The preferred option in the PADR is consistent with the Australian Energy Market Operator’s (AEMO) 2018 Integrated System Plan (ISP), which recommended several Group 1 transmission developments that should be undertaken as soon as practicable.  The ISP included a Group 1 recommendation to increase the transfer capacity, in both directions, between Queensland and New South Wales.  This is to enable positive net market benefits in the National Electricity Market (NEM) to be achieved through relieving power flow congestion between the two states. 

Project Assessment Draft Report (PADR)

 

Project Specification Consultation Report (PSCR)


The consultation process
In order to assess all network and non-network solution options from a technical and economic perspective, we are using the Australian Energy Regulator’s Regulatory Investment Test for Transmission (RIT-T). The RIT-T is a formal consultation process designed to:
  • Inform stakeholders of investment need and proposed options to address it
  • Test the market for alternative and more efficient solutions
  • Explain to stakeholders the basis on which the preferred option has been selected. 

The RIT-T consultation process has three stages:
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We are now at the second stage of the process, having published the Project Assessment Draft Report (PADR). The third stage will involve consideration of any new issues and drawing a conclusion on the option that will maximise the benefits received by the market. This will be explained in the final RIT-T publication, the Project Assessment Conclusion Report (PACR).

 

Submissions and next steps

TransGrid and Powerlink welcome written submissions and feedback on the PADR. Submissions should be emailed to regulatory.consultation@transgrid.com.au and are due on or before 15 November 2019.

TransGrid and Powerlink received the following written submissions on the PSCR:


The next stage of the RIT-T process is preparation of a Project Assessment Conclusions Report (PACR).