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Asset Management Plan 2019–2029 SUMMARY DOCUMENT

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Asset Management Plan 2019–2029 SUMMARY DOCUMENT Asset Management Plan 2019–2029 SUMMARY DOCUMENT Planning and investing in the network we need for the future Every year Network Tasman reviews DEMAND FORECAST the capital development, renewals, Demand in the industrial sector and maintenance sections of its Asset continued to increase throughout 2018 Management plan. The annual review and is expected to continue for the considers: next few years. This is driven by supply z Recent network performance (safety requirements for cold storage, shell fish and reliability) processing/extraction, rest homes, hop z An updated demand forecast processing, and dairy irrigation. z The current status of capital and There is also strong demand due to $120m network renewal projects land subdivision to support growth in This summary provides you with the residential housing developments. The Over the next 10 key information from our review and impact of electric vehicle charging is identifies the key steps Network Tasman likely to become a consideration later years, we plan to is taking to ensure our network is well in the timeframe covered by this plan. placed to support changes in electricity Work is underway to identify the LV invest $120 million usage and increased demand for networks in our system that will require electricity supply. investment to accommodate this. in our network. Network Tasman Asset Management Plan • 2019–2029 Summary Document Where do we fit in the electricity industry? Generation In New Zealand electricity is created in several ways, using water, wind, geo-thermal, gas and coal. Transmission High-voltage electricity is moved around the country using pylons and the national grid, which are owned and managed by Transpower. Distribution High voltage electricity is stepped down at substations, then Network Tasman distributes it safely to local residential and business consumers via our network of poles, lines and underground cables. Retail Your electricity retailer (the company that sends you a power bill) measures how much electricity you use. The generation, transmission and distribution companies receive their share of what you pay your retailer. Planning for future demand — capital investment Key Insights For the 2019/20 year, Network Tasman’s spending on capital projects will 1. Increases in the industrial sector continued throughout 2018 and are expected primarily fall into one of three areas: to continue for the next few years. This is driven by cold storage, shell fish z System growth processing/extraction, rest homes, hop processing and dairy irrigation. z Reliability, safety and environment 2. In the domestic area, land subdivision for residential growth is strong. The z Asset replacement and renewal impact of electric vehicle charging is also likely to become a consideration later in the plan. Work is underway to identify the low voltage networks in our Spending on these three areas is system that will require investment to accommodate this. forecast to account for almost 90 per cent of Network Tasman’s capital expenditure for the coming year. UNDERGROUND CONVERSION contractor resource into renewals projects (light copper conductor Planned network investment The last major underground conversion replacement and platform substation Capitalfor 2019/20 expenditure 2018/19 project in the AMP is Ellis St, Brightwater. This is planned to be implemented replacements). during the 2019-2020 year. In addition, Network maintenance will continue to a sum of $500k is budgeted in the AMP focus on timber cross arm replacements, for general and as yet unidentified iron rail pole replacements, and some underground conversion projects. targeted line hardware replacements NETWORK MAINTENANCE such as two-piece Dominion Dropout fuses (DDO). Network Maintenance will continue into System growth 2019-2020 albeit with slightly lower VEGETATION MANAGEMENT Reliability, safety and environment expenditure levels. This change reflects Vegetation management will continue Asset replacement and renewal the very good state of network condition throughout 2019 with a small increase Undergrounding that has been achieved during the past in expenditure level. This is the flow Consumer connection 10-year125 maintenance period and is also on effect of a clearance catch-up that Expenditure on non-network assets the result120 of Network Tasman redirecting follows a notification catch-up in 2018. 115 PAGE 2 110 105 100 95 90 Consumer connection Undergrounding System growth Reliability, safety and environment: 85 Asset replacement and renewal Expenditure on non-network assets 80 500 400 300 200 100 0 Network Tasman Asset Management Plan • 2019–2029 Summary Document For the 2019-2020 year, the major Network Development Projects capital projects are: z Completion of Wakapuaka One new growth-based project has development, in that it is triggered by substation and new 11kV feeder (1) been added to our system since the last the firm capacity of the supply available z Completion of the new feeder from AMP summary was prepared. This is the from the Stoke GXP rather than the total Annesbrook substation into the creation of a new 11kV feeder circuit supply that may be available with all Tahunanui industrial area (2) from Hope substation to boost supply to supply components in service. z Installation of the Mapua substation the Lower Queen St industrial area. This The timing for a development is based 33kV supply backup cable (3) project is timed for 2019-2020. on a “prudent” load forecast. This is due z Undergrounding of lines in Ellis St, The timing of other projects in the plan to the fact that the load in any particular Brightwater (4) has been reviewed so that the network winter is dependent on how cold the continues to accommodate growth and winter is. There is an approximate is also renewed in a timely fashion within difference in winter peak demand of 7 For the 2020/21 – 2023/24 periods, the the constraints of available resources. percent between a cold and mild winter. major growth based capital projects The most important project remains the Mild winters mask the “latent” load that are: development of the new Brightwater builds up, and this is accounted for in our z Motueka Substation switchboard GXP. This is a system security based prudent forecast. extension and new 11kV feeders COLLINGWOOD z Hope Substation transformer Planned projects capacity upgrade for 2019/20 z Motupipi Substation upgrade including 10MVAr capacitor bank KEY TAKAKA z Rockville Feeder 22kV upgrade first Feeder stage z Brightwater GXP and 33kV Feeder Substation Cables Undergounding ATAWHAI 1 MOTUEKA Network Renewals NELSON We will continue the following renewals 2 programmes over the next ten years MAPUA z Light copper conductor 3 RICHMOND Served by Nelson replacements on HV lines Electricity Ltd z Platform transformer replacements z Small copper cable replacements BRIGHTWATER 4 due to outer sheath corrosion Network Reliability Targets The SAIDI and SAIFI targets for planned outages Quality of service (measured in average outage duration across the year) have been reviewed upwards in light of our experience during the first year of the light System growth 58% 300 SAIDI Unplanned SAIDI Planned copper conductor upgrade. Despite generators Asset replacement and renewal 17% 232 being deployedUndergrounding where possible, a large number6% 250 208 of plannedReliability, shutdowns safety have and environmentbeen needed 12% to 200 180 187 185 complete theExpenditure work. on non-network assets 3% 178 148 159 UnplannedConsumer SAIDI/SAIFI connection was impacted by three4% 150 130 129 interference events on the Appleby highway affecting supply to 2200 Mapua customers. 100 These events were traffic related and generated a total of 34 SAIDI points. A project to eliminate 50 the effect of Appleby highway vehicle events on 0 the supply to Mapua is currently underway. 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 PAGE 3 Network Tasman Asset Management Plan • 2019–2029 Summary Document The changing use and generation of electricity on our network While still in the initial stages of uptake, and clustering of electric vehicles on our research and analysis in conjunction with electric vehicle (EV) ownership is high in network. industry groups to model the effects of Nelson-Tasman relative to other regional In this environment, we are looking to ongoing growth in solar PV generation and areas. apply new technologies to defer large to identify strategies that will maximise The load emerging from EV charging capital projects where it is practicable and the hosting capacity available while is expected to affect low voltage lines economic to do so. Opportunities may maintaining equity and fairness to all users exist for cooperative use of the energy initially. of the network. Investigative work is being undertaken at storage of the vehicle in a manner that Network Tasman has introduced standard present to identify the potential network lowers costs for all users. operating settings for solar PV inverters impacts of this new load type. Clustered The Nelson-Tasman region also has a home based vehicle charging occurring high level of solar photo-voltaic (PV) connected to its network to avoid in the evening in winter may impact low uptake compared with other areas of New overvoltage conditions arising while voltage distribution circuits in the next Zealand. maximising the generation that can be few years. NTL is monitoring adoption The company has undertaken considerable accommodated. ElectricElectric Vehicles Vehicles
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