Victoria to NSW Interconnector Upgrade


Together with the Australian Energy Market Operator (AEMO), TransGrid has published the Regulatory Investment Test for Transmission (RIT-T) Project Assessment Draft Report (PADR).

AEMO’s 2018 Integrated System Plan (ISP) recommended several investments, identified as Group 1 transmission developments, that should be undertaken as soon as practicable.  Inclusive in the ISP, as a Group 1 transmission development, was a recommendation to increase Victorian transfer capacity to New South Wales to capture positive net market benefits through more efficient sharing of generation resources between states.  

In November 2018, TransGrid & AEMO published the Investment Test for Transmission (RIT-T) Project Specification Consultation Report (PSCR) The PSCR detailed the need to upgrade the existing Victoria to New South Wales interconnector capacity and described the credible options to meet the need, including technical characteristics that would be required of a non-network option. In response to the PSCR, we received 9 public submissions and a confidential submission. All public submissions can be viewed on the AEMO website.

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.

In order to assess all network and non-network 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 the 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:

RIT-T

We are now at the second stage of the process for the Victoria to NSW interconnector capacity upgrade, having published the PADR. Given the significance of this RIT-T, level of stakeholder interest and to further support an open and transparent consultation process, TransGrid and AEMO published submissions prior to the publication of the PADR.  Submissions received (and approved for publication by proponents) can be viewed via the AEMO website.
 
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 

AEMO and TransGrid welcomes written submissions and feedback on the PADR. Submissions should be emailed to planning@aemo.com.au and are due on or before 11 October 2019.

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