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Network Vision 2056 Is Prepared and in All Cases, Anyone Proposing to Rely on Or Use Made Available Solely for Information Purposes Disclaimer and copyright The Network Vision 2056 is prepared and In all cases, anyone proposing to rely on or use made available solely for information purposes. the information in this document should: Nothing in this document can be or should be taken as a recommendation in respect of any 1. Independently verify and check the currency, possible investment. accuracy, completeness, reliability and suitability of that information The information in this document reflects the forecasts, proposals and opinions adopted by 2. Independently verify and check the currency, TransGrid as at 30 June 2016 other than where accuracy, completeness, reliability and suitability otherwise specifically stated. Those forecasts, of reports relied on by TransGrid in preparing this proposals and opinions may change at any document time without warning. Anyone considering this 3. Obtain independent and specific advice from document at any date should independently seek appropriate experts or other sources the latest forecasts, proposals and opinions. Accordingly, TransGrid makes no representations This document includes information obtained or warranty as to the currency, accuracy, from the Australian Energy Market Operator reliability, completeness or suitability for particular (AEMO) and other sources. That information purposes of the information in this document. has been adopted in good faith without further enquiry or verification. Persons reading or utilising this Network Vision 2056 acknowledge and accept that TransGrid This document does not purport to contain all and/or its employees, agents and consultants of the information that AEMO, a prospective shall have no liability (including liability to any investor, Registered Participant or potential person by reason of negligence or negligent participant in the National Electricity Market misstatement) for any statements, opinions, (NEM), or any other person or Interested Parties information or matter (expressed or implied) may require for making decisions. In preparing arising out of, contained in or derived from, or this document it is not possible, nor is it intended, for any omissions from the information in this for TransGrid to have regard to the investment document, except insofar as liability under any objectives, financial situation and particular needs New South Wales and Commonwealth statute of each person or organisation which reads or cannot be excluded. uses this document. TransGrid 180 Thomas Street, Sydney NSW 2000 PO BOX A1000, Sydney South NSW 1235 T (02) 9284 3000, F (02) 9284 3456 © TransGrid 2016 All rights reserved ABN 70 250 995 390 www.transgrid.com.au 2 Contents TransGrid’s strategic vision 5 Executive Summary 6 1. Introduction 8 1.1 About Transgrid 8 1.2 Purpose 9 1.3 Structure 9 2. Trends 10 2.1 Use 10 2.2 Supply 12 2.3 Emerging Technologies 16 3. Scenarios 19 3.1 AEMO’s NTNDP 2015 19 3.2 Future Grid Forum 2050 20 3.3 Perspective 22 4. Implications and actions 24 4.1 Implications 24 4.2 Actions 25 4.3 Perspective 26 5. Vision and Principles 27 5.1 Vision 27 5.2 Principles 27 Feedback 31 TransGrid Network Vision 2056 | 3 “ My interest is in the future because I’m going to spend the rest of my life there ” — C F Kettering “ The best way to predict the future is to invent it ” — Alan Kay Foreword I am pleased to provide you with this update of TransGrid’s Network As a business, our strategic focus is to understand the preferences Vision. This document does three things. First, it outlines the of our customers and the consumers and communities we serve challenges we are likely to face in planning, operating and managing to ensure our services meet their long term needs. We know that the NSW electricity transmission network over the next 40 years. they want choice when it comes to their electricity and we believe Second, it provides an overview of the actions TransGrid is already that there shouldn’t be a trade off between choice and affordability, taking to meet those challenges. Finally, it sets out the Vision and sustainability and reliability. Principles that we’ll use to continue to deliver strong value to our customers and end users as we journey into that future. As we look to the future, to achieve this, TransGrid will demonstrate efficiency, responsiveness and innovation in everything we do and Our network is the centrepiece of the National Electricity Market this underpins our Network Vision. (NEM), providing interconnection capability to Victoria and Queensland and playing a crucial role in supporting the economic There are two further points I’d like to make. growth of NSW and the ACT. It is one of the most reliable First, the fact that predicting the future isn’t easy only reinforces transmission networks in the world. the importance of continuing to engage with our customers and Taking a long view of the development of the network is important, stakeholders about what that future may look like and the challenges particularly now when the ways that we generate, transport and use we are likely to face in getting there. That dialogue forms an essential energy are undergoing rapid, significant change. There is a wide half of a virtuous circle: the better we understand our customers, range of opinions as to what that future may look like. Given the the more effectively we can plan, operate and deliver our network. uncertainties, this document isn’t an attempt to predict which one The more effectively we run our network, the more efficiently priced will come to pass. Nor is it a detailed planning document. Instead, capability we can offer our customers. the approach we’ve taken is to identify the features that those Second, we are already working hard to ensure that TransGrid scenarios about the future have in common. We will then discuss the as a business, and the transmission network itself, have the right characteristics our network will need to have to effectively play its capabilities. We continue to invest in our people to ensure a service- part in that emerging energy ecosystem. oriented, commercially focused and innovative culture as well as in It is also important to highlight TransGrid’s strategic focus as a technologies that enhance the performance of the network. I believe privately owned business. that by doing so we will continue to deliver strong value to energy users in NSW and the ACT. I look forward to your feedback. Safe & reliable Customer choice Gerard Reiter Sustainable Affordable Executive General Manager/ Asset Management TransGrid Network Vision 2056 | 5 Executive summary Australia’s electricity industry is changing. There is a new smart and both networks and customers will deploy more advanced energy ecosystem developing. Customers will be at the heart of (“smarter”) information and control systems to better manage the that system, having a far greater say in how their power is provided delivery and consumption of electricity services, respectively. The and the grid will play an important and evolving role in meeting their pace of these trends will depend on a combination of economic, needs. This document sets out TransGrid’s Vision as to how the government policy and technology drivers. Whatever the specific NSW transmission network will do so over the next forty years and outcome, the future of energy supply is likely to be: the principles by which it will be planned, operated and managed to deliver that future. > More complex with the supply chain evolving from being a one way system with limited product choice to a “many to Viewed with suitable caution, trends can provide a starting point any” model where a mix of traditional and emerging providers, for understanding what that future may look like. In recent years, including customers themselves, supply a much wider range of energy consumption and maximum demand (consumption at a energy services single point in time) have trended down due to a confluence of economic and policy factors. Consumption and winter maximum > Smarter with technology enabling both greater control by demand appear likely to grow more steady over time, with the customers regarding how their energy needs are met and greater impact of economic and population growth largely offset by a flexibility by networks and other parts of the supply chain in contriving focus on energy efficiency and strong penetration of responding to that more diverse and dynamic set of needs solar panel systems. Depending on the source of the forecast, > Greener with renewable forms of generation becoming more summer maximum may increase of decrease slightly. competitive with traditional fuel types The mix of generation is starting to change with thermal (coal and > More local with customers being able to meet a greater gas fired) generation being replaced with renewable generation. proportion of their needs from embedded generation This trend is likely to accelerate. Over the longer term, it is likely that a greater proportion of that generation will be at the local level > Where storage will undertake a range of important functions rather than large-scale. Advances in battery technologies will lead across the supply chain. to the increased takeup of storage options across the supply chain COMPLEX Diverse and dynamic ENGAGE supply chain FLEXIBLE to understand planning SMARTER Greater control over supply and use MOVE from assets to services GREENER SCALABLE Renewables become operations competitive INVEST LOCAL for value More embedded (renewable) generation EFFICIENT INNOVATE STORAGE asset management through people, data and INDUSTRY Plays a crucial role(s) RIGHT SIZED GRID PRINCIPLES technology NETWORK: RESPONSIVE 6 The Vision we have for our network over the next We will: 40 years is to connect you to that energy future. > Engage to understand in order to have a more sophisticated To do this, our business will need to be responsive to our knowledge of our customers (generators, directly connected customer’s needs, able to grow in ways that meet those needs and customers and end user consumers) efficient.
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