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Annual Planning Report 2020 ANNUAL PLANNING REPORT 2020 Feedback and enquiries We welcome feedback and enquiries on our 2020 APR, particularly from anyone interested in discussing opportunities for demand management or other innovative solutions to manage limitations. Please send feedback and enquiries to: [email protected] Potential demand management solution providers can also register with us via our demand management register on our website at https://www.tasnetworks.com.au/demand-management-engagement-register 1. Introduction 2 2. Network transformation 12 3. Transmission network development 22 4. Area planning constraints and developments 36 5. Network performance 66 6. Tasmanian power system 82 7. Information for new transmission network connections 96 Glossary 106 Abbreviations 109 Appendix A Regulatory framework and planning process 110 Appendix B Incentive Schemes 117 Appendix C Generator information 118 Appendix D Distribution network reliability performance measures and results 120 Appendix E Power quality planning levels 123 TASNETWORKS ANNUAL PLANNING REPORT 2020 1 1. Introduction Tasmania is increasing its contribution to a This transition, with the move to increased low cost, renewable energy based electricity interconnection and variable renewable energy sector and being a major contributor to generation, is fundamentally changing how the firming electricity supply across the National power system operates. We, in conjunction with Electricity Market (NEM). As a key part of this the broader Tasmanian electricity industry, have objective, we present the Tasmanian Networks Pty managed this situation well to date, however the Ltd (TasNetworks) Annual Planning Report (APR). diligence must continue and solutions to new As the Tasmanian jurisdictional Transmission and challenges identified to keep pace with change. Distribution Network Service Provider, this APR has been prepared in accordance with the National This chapter outlines our roles as a participant in Electricity Rules (the Rules) and jurisdictional the National Electricity Market, the preparedness requirements. of the Tasmanian network for the energy market transition, our customers and interactions with With Tasmania’s existing and potential them, the purpose of the reports, our current renewable energy assets and diverse consultations on major projects, and concludes transmission network, Tasmania is well with significant changes and developments since our 2019 APR. positioned to take advantage of the energy transition underway across the NEM. We are actively planning for future interconnection with the mainland NEM through our ongoing assessment of Marinus Link, preparing development plans for our renewable energy zones, and supporting the development of new variable renewable energy generation and the Battery of the Nation pumped hydro energy storage, Tasmanian Renewable Energy Target, and Tasmanian Renewable Hydrogen Action Plan initiatives. 2 TASNETWORKS ANNUAL PLANNING REPORT 2020 1.1 What we do The components of the Tasmanian power system are presented in Figure 1-1. The role of TasNetworks is TasNetworks owns, operates and maintains the shown in blue. electricity transmission and distribution networks in Tasmania. We deliver safe, cost-effective and reliable Tasmania’s power system forms part of the eastern monopoly and competitive electricity supply services Australian power system, which extends from north to more than 295,000 residential, commercial and Queensland to South Australia. Tasmania is connected industrial customers. We also facilitate the transfer of to the mainland network via Basslink, an HVDC electricity between Victoria and Tasmania via Basslink, interconnector. Electricity generation is provided a privately owned, sub-sea high voltage direct current by hydro, wind, and thermal (gas-fired) generators (HVDC) electricity interconnector. We also provide located throughout the network. A number of other telecommunications and technology services. small generators are connected within the distribution network, termed embedded generation and which We are owned by the State of Tasmania and also includes rooftop photovoltaics (PV). operate as a commercial business with assets of over $3 billion. The transmission network provides bulk power transfer from generators, often in remote areas, Our responsibilities include: to transmission-distribution connection points • Keeping our people, customers and the (substations) near load centres throughout Tasmania, community safe and protecting the environment; and to large customers directly connected to the • Tasmanian jurisdictional planner in the NEM; transmission network. The distribution network distributes the electricity to smaller industrial and • Maintaining and replacing network infrastructure commercial, irrigation and residential customers. to ensure a reliable service for our customers; • Connecting new customers to the network Electricity is sold to end-users, including those directly (including small and large-scale generators); connected to the transmission network, by retailers, who purchase electricity in bulk quantities from the • Investing in the network to support capacity NEM and sell it to the businesses and residences growth; that use it. The price of electricity for distribution • Operating the network on a day-to-day basis, customers includes a component for the use of the including all fault restoration; transmission and distribution networks. • Maintaining a public lighting system; • Recording and providing regulated meter data to retailers; and • Providing telecommunications to participants in the Tasmanian electricity supply industry. TASNETWORKS ANNUAL PLANNING REPORT 2020 3 Interconnectors Interconnectors transfer power between Tasmania and Victoria enabling Tasmania’s participation in the NEM Figure 1-1: Tasmania’s power system 4 TASNETWORKS ANNUAL PLANNING REPORT 2020 1.2 Future transmission and services to our network. Uncontrolled charging could exacerbate network demand issues, while if distribution network readiness appropriately managed, EV charging could improve The Tasmanian power system developed historically utilisation of existing network assets. to harness the State’s geographically diverse hydro Investment in technologies such as advanced energy resources and more recently world-class wind metering infrastructure will provide increased network resource and interconnection to the NEM. Therefore, visibility and access to operational information. our transmission system supports a resilient and Such investment will support DER integration and secure power system with generation dispersed advanced distribution management systems enabling across the State and major northern and southern operational efficiencies, improvements in reliability load centres. and addressing identified quality of supply issues. Our current system, together with our An evolving future is the further development development plans outlined in this APR, sees of distribution-connected customers’ ability to generate and store electrical energy. This will provide Tasmania in a strong position to support new customers the ability to form electricity exchanges variable renewable energy generation and to trade demand profiles. Such trading requires storage in our three renewable energy zones enabling regulatory frameworks and supporting (REZ), and a future “hydrogen economy”. “trade settlements” technology. The Tasmania Midlands REZ centres on the main 1.3 Our customers transmission corridor linking northern and southern Tasmania that provides significant capacity to connect With safety at the forefront of our operations, new generation. The North East Tasmania REZ is in the safety of our people, our customers and the relative proximity to the major northern load centre community remains our top priority. Our Safety and and existing Basslink NEM interconnection thus Wellbeing Strategy for 2019–21 continues to guide minimising network augmentation requirements. planning and performance efforts to ensure we put The opportunity to develop Marinus Link will the safety and wellbeing of our people, customers provide strong transmission services in the North and the community first. West Tasmania REZ for variable renewable energy Our customers remain sensitive to increases in generation and storage opportunities. electricity prices, and research highlights that the cost of electricity remains a key household concern across While Tasmania is well positioned to take Australia. We therefore continuously strive to deliver advantage of the energy transition underway the lowest sustainable pricing for our customers and across the NEM, the operational challenges continue to explore new ways through our Pricing are only expected to increase. We, in Reform Working Group1 to involve our customers in conjunction with the broader Tasmanian pricing considerations, and in our move towards more electricity industry, have managed the cost-reflective pricing. situation well to date, however the diligence We are improving our systems to increase customers’ must continue and solutions to new ease of doing business with us and optimise value and challenges identified to keep pace service for all our customers. with change. We constantly look for ways to improve the At the distribution level, our Future Network Strategy way customers can engage with us, the ways encompasses understanding the impacts and in which we communicate with customers opportunities arising from: and improve the customer experience • Transport
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