Investing for Future Generations Our Five Year Network Plan 2009–2014 EnergyAustralia Investing for Future Generations Investing for Future Generations Our Five Year Network Plan: 2009–2014 Contents 2 Overview: Investing for a sustainable future 4 About EnergyAustralia 6 Smart Grid 8 Smart meters and time based pricing 10 Managing demand 12 Using energy more effi ciently 14 Investing in our electricity network 16 Lighting the streets 18 Driving reliability – meeting our customer’s expectations 21 Regional network investment 62 Transmission network investment 64 Contact details Our Five Year Network Plan: 2009—2014 1 Overview: Investing for a sustainable future George Maltabarow Managing Director EnergyAustralia is embarking We are now embarking on a large This network renewal will also on one of Australia’s biggest project to install more than 12,000 create stable and long term careers infrastructure programs over the smart sensors in substations for a new generation of electrical next fi ve years as we begin to throughout suburban streets, to workers. In fact more than 1,000 renew and replace Australia’s largest help blackouts to become shorter apprentices and graduates are network of electricity substations, and less frequent. expected to join our ranks over the poles and wires. This large scale infrastructure next fi ve years to help build and This $8 billion network upgrade program will mean many parts of maintain this network for many creates a number of major challenges, our electricity network that were years to come. but also a range of opportunities to built when our economy was The Federal Government’s Carbon create a smarter, faster and more expanding in the late 1960s and Pollution Reduction Scheme is reliable electricity network. early 1970s will be rebuilt. predicted to help reduce electricity This is no longer a network We plan to build 49 new zone used in homes and businesses of the future. It’s fast becoming substations, replace 1,263 panels throughout the country. We have the network of today. of 11,000 volt switch gear and factored this reduction into our plans. Expert crews have already rolled replace 155 km of 33,000 volt cable out 800 kilometres of new fi bre and 141 km of 132,000 volt cable. optic cables, installed hundreds We plan to improve reliability at of communication switches and the lower end of our network too deployed carrier-grade Internet over the next fi ve years – with Protocol technology to connect 200 $2.2 billion marked for the low major substations on our network. voltage 11,000 volt network on streets throughout Sydney, the Hunter and the Central Coast. 2 EnergyAustralia Investing for Future Generations However, while overall electricity A typical air conditioner increases Finally, we aim to deliver this use is expected to decrease, it is, household peak demand by about electricity network plan in a way of course, peak demand that drives 2 kilowatts on hot days – that’s the that respects the community we the need for infrastructure. same as switching on 20 standard work in. We build community This peak energy use is being televisions all at once. feedback into our projects and aim driven by population growth, When all these air conditioners are to protect the local environments economic growth and also switched on at once it can create where we operate. increasing use of air conditioners high demand on the electricity grid. in our homes and businesses. This plan delivers the investment Yours sincerely We estimate that about 58,000 needed to meet that extra demand. air conditioners will be installed We are also targeting increased in homes throughout our network peak demand through a system area every year. By 2014, we expect of pricing incentives and demand more than three quarters of all management projects that will help George Maltabarow homes on our network to have make the energy network more Managing Director an air conditioner. effi cient and help people to use less electricity. No energy business in Australia does more in demand management and energy effi ciency than EnergyAustralia. Our Five Year Network Plan: 2009—2014 3 About EnergyAustralia EnergyAustralia is one of the largest energy suppliers in the country with more than 100 years experience in providing a safe and reliable supply of electricity. We operate the largest electricity network in the country, uniquely comprised of both transmission and distribution systems that supply electricity to more than three million people in Sydney, the Central Coast and the Hunter Region. Our electricity network includes The performance of our network more than 49,000km of both has remained stable over many At a glance overhead and underground years, with a safe power supply – In 2008/09 our electricity powerlines, 41 subtransmission available 99.98 per cent of the network distributed more than substations, 177 zone substations time. We have maintained our 30,000 GWh of electricity to and 29,974 distribution substations. performance despite undergoing homes and businesses. Together this electrical equipment rapid periods of growth to keep pace supplies 1.6 million customer with development, meeting demand – This is about 51 per cent of connections. and renewing our assets. all the electricity consumed in NSW. This network serves a wide range And with demand for power of communities from rural towns, continuing to grow, particularly – It was delivered via 4,570km rugged mountain communities and on our summer peak days, we are of 132,000 volt, 66,000 volt regional centres to the Sydney CBD working to maintain this reliable high voltage transmission and the Homebush Olympic site. It supply by delivering an $8 billion lines, 17,361km of high voltage is powering key industries across capital program. distribution lines; and 27,615km of low voltage distribution lines. these regions including mining, EnergyAustralia is committed manufacturing, oil refi ning, shipping, to fulfi lling our Duty of Care, – More than 3,500 front line engineering and agriculture. complying with legislation and workers help to maintain and licence conditions, maintaining upgrade our electricity network, asset integrity, improving reliability including more than 640 over time and meeting the demand apprentices and engineering for about 17,000 new network graduates. customer connections each year. – EnergyAustralia is the single largest employer of apprentices in NSW. 4 EnergyAustralia Investing for Future Generations About six kilometres of underground tunnel carrying high voltage transmission cables will be created to form a ring, picking up new and upgraded substations. Committed projects and the new CityGrid Project make up the $1 billion investment. Five Year Capital Budget 2009-2014 2009-2010 $1,191.8m 2010-2011 $1,483.3m 2011-2012 $1,640.1m 2012-2013 $1,800.8m 2013-2014 $1,765.4m Area Support Metering System land Duty of Care Replacement Street lighting 11kV and LV Network Customer Connections Operational Technology Our Five Year Network Plan: 2009—2014 5 Smart Grid EnergyAustralia’s intelligent network program is pioneering the transformation of electricity distribution networks, signalling the biggest change to electricity networks in 100 years. Our program is at the forefront of This telecommunications network efforts by the electricity industry is the crucial ‘last-mile’ for an At a glance worldwide to overlay smart intelligent network as it connects all – A new communications technologies across existing parts of the network with two-way platform has been built across networks to create a smart grid. communications, including smart the network. EnergyAustralia is rolling out a meters and other smart devices. – More than 800 kilometres $170 million intelligent network Two-way communications is the key of fi bre optic cable has been program to create a smarter, more to providing greater information and installed connecting more than reliable electricity network to deliver services to customers, including 200 substations. greater services to customers. online monitoring of energy use – 12,000 smart sensors are being In three years, we have rolled out and remote control of appliances. installed across the network to a next generation communications This year we are extending collect data. platform, uniquely designed for our our intelligent network rollout utility business. by installing sensors in 12,000 – A two-way communications network using WiMax We have installed 800 kilometres suburban substations. technology has been trialled of new fi bre optic cables which This will give our engineers and in the Hunter. underpins the core functions technicians an instant picture of of control and security of the how that part of the network is – $10 million partnership electricity network. performing. The sensors will allow established with Sydney and Newcastle Universities to lead We have also fi tted hundreds us to detect faults before they occur, smart grid development. of communication switches and fi nd and fi x any faults quickly, and deployed carrier-grade Internet connect more renewable energy Protocol (IP) technology to connect to our network in the future. 200 major substations on our This level of monitoring and control network. will make our network more The new telecommunications intelligent so we can provide a platform provides greater better power supply to customers. information about equipment to We have also launched a $10 million fi eld and offi ce staff, allowing better partnership with Sydney University decision-making and early fault and Newcastle University