18 November 2013
South Australia’s electricity transmission specialist

Heywood interconnector
project – expanding the
ava...
Presentation outline
> What are the details of the Heywood Interconnector
upgrade project?
> What are the projected benefi...
South Australia’s electricity transmission specialist

Heywood Interconnector
Upgrade Project

electranet.com.au
SA to Victoria (Heywood) interconnector context
Olympic Dam Nth

> Nominal power transfer
capability of +/‐ 460 MW
> Power...
SA to Victoria (Heywood) interconnector context
Olympic Dam Nth

> Flow in both directions
has been increasingly
constrain...
Project drivers
> Increase the maximum available import and export
power transfer capability between South Australia and
V...
Project costs and benefits
> Regulatory investment test
(RIT-T) demonstrated net
market benefits of more than
$190m over 2...
Project scope (SA components)
1. Install series capacitors on the
two Tailem Bend to South East
275 kV transmission lines,...
Project drivers
> Increase the maximum available import and export
power transfer capability between South Australia and
V...
Project options considered
Option

1a
1b

Description

3rd Heywood transformer + 100 Mvar
capacitor + 132 kV works
3rd Hey...
Business case (RIT-T) process
Economic business case for upgrade has been
proven through a long and exhaustive public proc...
Business case (RIT-T) process (cont.)
Identify
need for
investment
and
possible
options

Prepare
project
specification
con...
Business case process observations
> The Heywood interconnector upgrade RIT-T process
has set a new benchmark in terms of:...
South Australia’s electricity transmission specialist

Future outlook for additional
interconnector capacity and
wind ener...
SA wind power connections 2001 to 2013
Generator/ load
Hallet OCGT Power Station
Amcor Bottling Plant load Roseworthy
Cath...
SA wind penetration metrics 2012-13
Metric

Value for SA

Capacity penetration – installed capacity as a %
of total instal...
Wind power penetration (% energy)
Denmark

27.1

South Australia

25

Portugal

16.8

Spain

16.3

Ireland

12.7

Germany
...
SA capacity for increased wind power
>

Capacity for increased wind is a function of electricity
demand in SA and capabili...
Projected 2020 NEM wind generation
Existing
wind (MW)

Projected new
wind (MW)

Total 2020
wind (MW)

2012 minimum
demand ...
60%

SA energy generation by fuel type
50%

Technology share

40%

•
•
30%

Gas share has historically been 45-50%
Coal sh...
SA 2012-13 energy generation by fuel type
Gas is clearly significant to
the SA electricity market

Source: AEMO South Aust...
Gas prices: historical and forecasts
Gas prices are forecast to double by
mid 2020s putting upward pressure
on wholesale e...
Benefits of a larger interconnector

Source: South Australia – Victoria (Heywood) Interconnector Upgrade, RIT-T Project
As...
Benefits of a larger interconnector (cont.)

$m
NPV

Chart demonstrates that the benefits of a larger
interconnector are p...
Additional interconnector capacity
>

ElectraNet is investigating the feasibility of options to
firm up and build on exist...
Additional interconnector capacity
>

Major new 500 kV interconnector option together with
associated intra-regional works...
Concluding messages
>

South Australia has capacity for more wind generation
connections to the transmission network

>

C...
18 November 2013
South Australia’s electricity transmission specialist

Heywood interconnector
project – expanding the
ava...
Upcoming SlideShare
Loading in …5
×

Rainer korte expanding the availability of wind energy rainer korte (18 nov2013)

912 views

Published on

9th Wind Energy Conference Adelaide 18th Nov13

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
912
On SlideShare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
21
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Rainer korte expanding the availability of wind energy rainer korte (18 nov2013)

  1. 1. 18 November 2013 South Australia’s electricity transmission specialist Heywood interconnector project – expanding the availability of wind energy Australian Wind Energy Conference Rainer Korte Executive Manager Asset Management electranet.com.au
  2. 2. Presentation outline > What are the details of the Heywood Interconnector upgrade project? > What are the projected benefits of the project? > Future outlook for additional interconnector capacity > Future outlook for additional wind energy in South Australia Slide 2
  3. 3. South Australia’s electricity transmission specialist Heywood Interconnector Upgrade Project electranet.com.au
  4. 4. SA to Victoria (Heywood) interconnector context Olympic Dam Nth > Nominal power transfer capability of +/‐ 460 MW > Power transfer from the south east to Adelaide region is via a 275 kV double circuit line and two underlying 132 kV transmission lines > Historically has predominantly been used to import power into SA > However, in recent years the interconnector has also increasingly been used to export wind power from SA Leigh Ck Coalfield Leigh Ck South Olympic Dam West Woomera Pimba Mt Gunson Neuroodla Playford Wudinna Davenport Stony Pt Cultana Whyalla Terminal Middleback Baroota Bungama Belalie Hallett PS Canowie Pt Pirie Mt Millar Clements Gap Yadnarie Snowtown Kadina East Redhill Mokota Brinkworth Clare Nth Mintaro Robertstown Waterloo North West Bend Waterloo East Hummocks Sleaford Pt Lincoln Terminal Monash Ardrossan West Templers West Roseworthy Dalrymple Wattle Pt Happy Valley Berri Dorrien Para Tungkillo Mannum Cherry Gdns Mobilong Kanmantoo Morphett Vale Back Tailem Bend East Callington Starfish Hill Keith South Australia to Victoria (Heywood) Interconnector Kincraig Penola West Snuggery South East Mayurra Lake Bonney Wind Farm Mt Gambier Blanche Canunda
  5. 5. SA to Victoria (Heywood) interconnector context Olympic Dam Nth > Flow in both directions has been increasingly constrained by: – Low thermal capacity of one of the 132 kV lines; this line is also very old and requires significant maintenance Leigh Ck Coalfield Leigh Ck South Olympic Dam West Woomera Pimba Mt Gunson Neuroodla Playford Wudinna Davenport Stony Pt Cultana Whyalla Terminal Middleback Baroota Bungama Belalie Hallett PS Canowie Pt Pirie Mt Millar Clements Gap Yadnarie Snowtown Kadina East Redhill Mokota Brinkworth Clare Nth Mintaro Robertstown Waterloo – Inadequate equipment ratings – Voltage stability limitations in the South East region of SA – Insufficient transformer capacity at Heywood substation in Victoria North West Bend Waterloo East Hummocks Sleaford Pt Lincoln Terminal Monash Ardrossan West Templers West Roseworthy Dalrymple Wattle Pt Happy Valley Berri Dorrien Para Tungkillo Mannum Cherry Gdns Mobilong Kanmantoo Morphett Vale Back Tailem Bend East Callington Starfish Hill Keith South Australia to Victoria (Heywood) Interconnector Kincraig Penola West Snuggery South East Mayurra Lake Bonney Wind Farm Mt Gambier Blanche Canunda
  6. 6. Project drivers > Increase the maximum available import and export power transfer capability between South Australia and Victoria to: – Enable increased utilisation of wind resources and export of wind energy from South Australia – Enable increased imports of lower cost generation into South Australia, particularly at times of peak demand – Reduce high wholesale electricity prices at peak demand times and low to negative prices under low demand, high wind generation, high export conditions – Facilitate further generator competition in the wholesale electricity market 6
  7. 7. Project costs and benefits > Regulatory investment test (RIT-T) demonstrated net market benefits of more than $190m over 25 years > Regulator (AER) has reviewed and confirmed outcomes of RIT-T process > Project will increase capacity by about 40% from nominal 460 MW to 650 MW (and improve capacity utilisation) > Additional capacity to be commissioned by July 2016 > Estimated cost is $108m ($63m in SA) ($2011-12) Market benefits largely arise from changes in fuel consumption and changes in generation investment costs 7
  8. 8. Project scope (SA components) 1. Install series capacitors on the two Tailem Bend to South East 275 kV transmission lines, at a new Black Range site 2. Implement a control scheme to prevent overload of South East transformers at times of high wind energy export 3. Upgrade assets at substations in the South East region to allow utilisation of at least full winter ratings along the 275 kV interconnector and the underlying 132 kV transmission network 4. Decommission two 132 kV lines that cause thermal limitations on interconnector capacity Note – Victorian component comprising installation of a 3rd Heywood 500/275 kV transformer and 500 kV bus tie is being progressed by AEMO 8
  9. 9. Project drivers > Increase the maximum available import and export power transfer capability between South Australia and Victoria to: – Enable increased utilisation of wind resources and export of wind energy from South Australia – Enable increased imports of lower cost generation into South Australia, particularly at times of peak demand – Reduce high wholesale electricity prices at peak demand times and low to negative prices under low demand, high wind generation, high export conditions – Facilitate further generator competition in the wholesale electricity market 9
  10. 10. Project options considered Option 1a 1b Description 3rd Heywood transformer + 100 Mvar capacitor + 132 kV works 3rd Heywood transformer + series compensation + 132 kV works Capital Costs ($m 2011-12) Notional SA to VIC limit (MW) Notional VIC to SA limit (MW) 78 550 550 108 650 650 2a Option 1a + 3rd South East transformer 95 550 550 2b Option 1b + 3rd South East transformer 125 650 650 3 New Krongart – Heywood 500 kV interconnector + 275 kV works 889 2,400 2,400 4 132 kV works + 100 Mvar capacitor 41 460 460 5 200 MW demand management + Option 1b deferred by 2 years 233 650 650 6a Control schemes + 500 kV bus tie 22 550 460 6b Control schemes + Option 1b minus 3rd Heywood transformer 84 570/ 690 460 A range of options were considered, including a new much larger capacity interconnector, demand management and a generator control scheme Source: South Australia – Victoria (Heywood) Interconnector Upgrade, RIT-T Project Assessment Conclusions Report, January 2013, p24 10
  11. 11. Business case (RIT-T) process Economic business case for upgrade has been proven through a long and exhaustive public process Feasibility study (started early 2010 with final report published in Feb 2011) Formal RIT-T process - PSCR consultation report Oct 2011 - PADR draft report Sep 2012 - PACR final report Jan 2013 AER review of RIT-T outcome under NER 5.16.6 (Apr 2013 to Sep 2013) 11
  12. 12. Business case (RIT-T) process (cont.) Identify need for investment and possible options Prepare project specification consultation report (PSCR) Assess submissions and determines list of credible options Undertake cost benefit assessment and determines preferred option 12 weeks for submissions Prepare project assessment draft report (PADR) Assess submissions and makes adjustments as necessary 30 business days for submissions Issue project assessment conclusions report (PACR) AER undertakes dispute process if the outcome is disputed 30 business days to raise a dispute RIT-T process could typically take 12 months or more assuming no disputes (due to mandated minimum consultation timeframes) 12
  13. 13. Business case process observations > The Heywood interconnector upgrade RIT-T process has set a new benchmark in terms of: – Comprehensive and rigorous analysis undertaken – Transparency and extent of consultation with stakeholders > Some stakeholders took advantage of the Rules 5.16.6 process that followed the RIT-T to re-prosecute issues that had been raised and dealt with earlier > Cost of RIT-T process was about $2-3 million > ElectraNet will apply to the AER at the end of 2013 for contingent project funding for the SA components of the project 13
  14. 14. South Australia’s electricity transmission specialist Future outlook for additional interconnector capacity and wind energy in SA electranet.com.au
  15. 15. SA wind power connections 2001 to 2013 Generator/ load Hallet OCGT Power Station Amcor Bottling Plant load Roseworthy Cathedral Rocks Wind Farm Lake Bonney Wind Farm Stage 1 Mount Millar Wind Farm Wattle Point Wind Farm Middleback load Brown Hill Range Wind Farm (Hallett 1) Snowtown Wind Farm Stage 1 Hallett Hill Wind Farm (Hallett 2) Lake Bonney Wind Farm Stage 2 Clements Gap Wind Farm Quarantine OCGT Power Station Expansion Stage 5 Lake Bonney Wind Farm Stage 3 North Brown Hill Wind Farm (Hallett 4) Port Lincoln OCGT Power Station No. 3 Waterloo Wind Farm Kanmantoo Mine load The Bluff Wind Farm (Hallett 5) Connected 2001 2002 2005 2005 2005 2005 2006 2007 2007 2008 2008 2009 ElectraNet has successfully negotiated 20 grid connections in a little over 10 years 2009 Installed wind capacity is about 1200 MW with another 270 MW under construction (Snowtown Stage 2) 2010 2010 2010 2010 2011 2011 • 3 conventional generators • 3 loads • 14 wind farms 15
  16. 16. SA wind penetration metrics 2012-13 Metric Value for SA Capacity penetration – installed capacity as a % of total installed generation 27% Energy penetration – ratio of annual wind energy to annual total energy demand 25% Maximum instantaneous penetration (excluding exports) – maximum observed ratio of wind energy to demand at any instant of time 88% Maximum possible instantaneous penetration – ratio of installed capacity to minimum demand 116% These metrics will increase with the commissioning of the Snowtown 2 wind farm in 2014 Source: AEMO South Australian Wind Study Report 2013 16
  17. 17. Wind power penetration (% energy) Denmark 27.1 South Australia 25 Portugal 16.8 Spain 16.3 Ireland 12.7 Germany 10.8 Romania 6.9 Australia 3 0 5 10 15 20 25 30 Sources: AEMO South Australian Wind Study Report 2013 Wind in power, 2012 European statistics, February 2013 17
  18. 18. SA capacity for increased wind power > Capacity for increased wind is a function of electricity demand in SA and capability to export to major load centres in eastern states > Feasible wind farm connections can be maximised by optimal siting of new wind farms > Further capacity for increased wind power will result from… – increased demand (e.g. major mining loads) – current and future initiatives to increase interconnector capacity – Economic large scale energy storage solutions (in the future) Slide 18
  19. 19. Projected 2020 NEM wind generation Existing wind (MW) Projected new wind (MW) Total 2020 wind (MW) 2012 minimum demand (MW) 0 265 265 4,098 New South Wales 265 2,117 2,382 5,124 Victoria 864 4,090 4,974 3,780 1,205 1,350 2,555 1,035 308 1,060 1,368 813 2,662 8,883 11,545 15,174 Region Queensland South Australia Tasmania NEM Commissioning of the Snowtown 2 wind farm in 2014 will add 270 MW to existing wind capacity in SA Source: AEMO Integrating Renewable Energy – Wind Integration Studies Report, September 2013 19
  20. 20. 60% SA energy generation by fuel type 50% Technology share 40% • • 30% Gas share has historically been 45-50% Coal share is declining largely replaced by wind 20% 10% 0% 2008-09 2009-10 2010-11 2011-12 2012-13 Financial year Coal Gas Wind Interconnectors Rooftop PV Other Source: AEMO South Australian Historical Market Information Report 2013, 31 July 2013 Slide 20
  21. 21. SA 2012-13 energy generation by fuel type Gas is clearly significant to the SA electricity market Source: AEMO South Australian Historical Market Information Report 2013, 31 July 2013 Slide 21
  22. 22. Gas prices: historical and forecasts Gas prices are forecast to double by mid 2020s putting upward pressure on wholesale electricity prices – likely to impact on generation mix Source: AEMO 2013 Planning Consultation Methodology and Input Assumptions, May 2013 22
  23. 23. Benefits of a larger interconnector Source: South Australia – Victoria (Heywood) Interconnector Upgrade, RIT-T Project Assessment Conclusions Report, January 2013, p98 (revised central scenario) 23
  24. 24. Benefits of a larger interconnector (cont.) $m NPV Chart demonstrates that the benefits of a larger interconnector are positive in all scenarios considered. Further interconnector development may be feasible. Source: South Australia – Victoria (Heywood) Interconnector Upgrade., RIT-T Project Assessment Conclusions Report, January 2013 24
  25. 25. Additional interconnector capacity > ElectraNet is investigating the feasibility of options to firm up and build on existing and post upgrade interconnector capacity > Firm up existing capacity through low cost projects funded by early application of Network Capability Component of the AER Service Target Performance Incentive Scheme – – > Uprate certain transmission lines Apply short-term line ratings Further options for incremental augmentation to the Heywood interconnector that could potentially provide 100 – 150 MW additional capacity) Slide 25
  26. 26. Additional interconnector capacity > Major new 500 kV interconnector option together with associated intra-regional works (potentially providing up to 2,000 MW additional capacity) > Outcomes of high level investigation will be reported in June 2014 Transmission Annual Planning Report to the market Slide 26
  27. 27. Concluding messages > South Australia has capacity for more wind generation connections to the transmission network > Current Heywood interconnector upgrade (40% increase in interconnector capacity) will improve this position > Connecting parties encouraged to work with ElectraNet to explore and develop win-win outcomes – engage early and develop a partnership approach > Understand the NEM environment and look for optimal outcomes within this environment > ElectraNet is investigating the feasibility of options to firm up and build on existing and post upgrade interconnector capacity Slide 27
  28. 28. 18 November 2013 South Australia’s electricity transmission specialist Heywood interconnector project – expanding the availability of wind energy Australian Wind Energy Conference Rainer Korte Executive Manager Asset Management electranet.com.au

×