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2020 Report Into the Reliability of Electricity Network Services In 2020 REPORT INTO THE RELIABILITY OF ELECTRICITY NETWORK SERVICES IN TASMANIA Issued by the Tasmanian Economic Regulator OFFICE OF THE TASMANIAN ECONOMIC REGULATOR CONTACT DETAILS Office of the Tasmanian Economic Regulator Office hours: 8.45am to 5.00pm, Monday to Friday (except public holidays) Street address: Level 3, 21 Murray Street, Hobart, Tasmania 7000 Postal address: GPO Box 770, Hobart, Tasmania 7001 Telephone: (03) 6166 4422 or international +61 3 6166 4422 Email: [email protected] Website: www.economicregulator.tas.gov.au Published February 2020 ISBN 978-0-7246-5539-7 Copyright © Office of the Tasmanian Economic Regulator TABLE OF CONTENTS EXECUTIVE SUMMARY ........................................................................................................................... 5 1 INTRODUCTION .......................................................................................................................... 8 2 THE TASMANIAN ELECTRICITY NETWORK .................................................................... 12 3 RELIABLITY PERFORMANCE FOR MAINLAND TASMANIA ......................................... 15 4 RELIABILITY PERFORMANCE FOR THE BASS STRAIT ISLANDS ................................. 31 5 ISSUES RELATING TO RELIABILITY AND POWER QUALITY ...................................... 36 6 MEDIUM TERM OUTLOOK...................................................................................................... 39 7 CONCLUSION ............................................................................................................................. 42 APPENDIX A – TERMS OF REFERENCE ........................................................................................... 43 ABBREVIATIONS AEMC Australian Electricity Market Commission AEMO Australian Energy Market Operator AER Australian Energy Regulator APR Annual Planning Report Basslink Interconnector between Tasmania and Victoria BOA Basslink Operations Agreement CAIDI Customer Average Interruption Duration Index DC direct current DNSP Distribution Network Service Provider ESI Electricity Supply Industry ESI Act Electricity Supply Industry Act 1995 ESI Regulations Electricity Supply Industry (Network Planning Requirements) Regulations 2018 GSL Guaranteed Service Level HV high voltage Hz Hertz kVA kilovolt amps LOS Loss of supply LV low voltage MAIFI Momentary Average Interruption Frequency Index MEDs Major event days NEM National Electricity Market NER National Electricity Rules OTTER Office of the Tasmanian Economic Regulator PQ Power quality PV Photovoltaic SAPS Stand-alone power systems SAIDI System Average Interruption Duration Index SAIFI System Average Interruption Frequency Index STPIS Service Target Performance Incentive Scheme TEC Tasmanian Electricity Code TNSP Transmission Network Service Provider TasNetworks TasNetworks Pty Ltd USE Unserved Energy VCR Values of Customer Reliability 2019 REPORT INTO THE RELIABILITY OF ELECTRICITY NETWORK SERVICES IN TASMANIA EXECUTIVE SUMMARY Background This Report provides the outcomes from a review of the reliability of Tasmanian electricity network services from 1 July 2016 to 30 June 2019 inclusive (the reporting period). Section 10B of the Electricity Supply Industry Act 1995 requires the Regulator to conduct a review into the reliability of Tasmanian electricity network services at least once every three years. The previous review covered the period from 1 July 2013 to 30 June 2016 and was completed in October 2016. In July 2019, the Regulator published, and called for submissions on, the draft terms of reference for the review. A submission was received from TasNetworks and is available on the Regulator’s website. The final terms of reference were published in August 2019. Prior to publishing this Report, the Regulator liaised with TasNetworks, Basslink and Hydro Tasmania to ensure it did not contain any errors of fact. Reliability Reliability in terms of electricity network services refers to the capability of network infrastructure to transport electricity from the generation location to end use customers. Network reliability is measured by the frequency and duration of loss of electricity supply (outages). The frequency of outages is determined by the quantity, type and management of network assets while the duration of outages is determined by how quickly a network service provider is able to restore electricity supply. Reliability of supply in the mainland Tasmanian transmission system is measured by unserved energy (USE) and system minutes off supply. Mainland Tasmania’s transmission network reliability performance has been satisfactory over the reporting period, in particular in 2018-19 with less USE, and fewer system minutes off supply than in previous years. In addition, the number of Loss of Supply (LOS) events was below the relevant LOS limits during the reporting period. Reliability of supply in the mainland Tasmanian distribution system is measured in terms of the number and duration of interruptions on a per customer basis. The two main indicators are SAIFI (System Average Interruption Frequency Index) and SAIDI (System Average Interruption Duration Index). Distribution network reliability performance data are provided on an adjusted basis, under which the data excludes Major Event Days (MEDs), which are major (force majeure) events that affect large sections of the network and are beyond the control of the service provider. The aim of excluding major event days is to give a better indication of the underlying performance of the network. The supply reliability indicators for the distribution system show that reliability performance varies from year to year but, overall, distribution network reliability performance was satisfactory over the reporting period. OFFICE OF THE TASMANIAN ECONOMIC REGULATOR 5 2019 REPORT INTO THE RELIABILITY OF ELECTRICITY NETWORK SERVICES IN TASMANIA At the community category level1, the frequency of outages for all categories met the standards in the Tasmanian Electricity Code (TEC) during the reporting period. In contrast, the duration of outages was longer than the TEC standards for all categories for at least one year during the reporting period. TasNetworks has stated that for a number of communities in Tasmania there was consistently poor reliability of supply. TasNetworks has identified 10 where the reliability of network services will be reviewed. Basslink’s reliability performance has been satisfactory during the reporting period. The only prolonged outage was in March 2018 and was caused by third party damage at a transition station in Victoria. The overall reliability performance of the Bass Strait Islands’ distribution network deteriorated in terms of both SAIDI and SAIFI on both islands over the reporting period. Hydro Tasmania is upgrading the network on both islands to improve reliability of supply. Quality of supply The quality of supply is measured in terms of whether the power factor and voltage are within certain pre-determined ranges2 and, therefore, whether the electricity supply is suitable for use by customers. There was a general decrease in the incidence of over-voltage during the reporting period. The exception was in relation to the number of customers receiving over-voltage due to high voltage injections, which increased significantly during 2018-19. This was due to voltage surges resulting from equipment failure, caused by a weather event. Reliability-related issues There is a significant amount of non-synchronous generation in Tasmania, mainly in the form of large scale wind farms and, to a lesser extent, small-scale solar photo voltaic installations (rooftop PV). The Australian Energy Market Operator (AEMO) has noted that this has contributed to a shortage of inertia in the Tasmanian power system3, which is needed to maintain the frequency within the network at the desired level. To address this issue, the AEMC made a rule change, effective from 1 July 2018, to require Transmission Network Service Providers (TNSPs) to procure sufficient inertia services to meet minimum inertia requirements in each region (as determined by AEMO).4 AEMO has also had to respond to the impact of the increase in wind generation on power system strength by managing fault levels. AEMO stated that “A reduction in system strength in certain areas of the network may mean that generators are no longer able to meet their technical performance standards and may be unable to remain connected to the system at certain times. It may also lead to voltage instability and a reduction in the effectiveness of the protection systems used by network businesses, generators and large customers. If not addressed, these effects could lead to system instability and potential major supply interruptions”.5 AEMO has also prepared guidelines for assessing the system strength.6 To this end a National Electricity Market rule change has been made, effective 1 For the purpose of measuring distribution network performance, Tasmania is divided into 101 supply reliability areas referred to as “communities”. These communities are aggregated into one of the following five supply reliability categories: Critical Infrastructure; High Density Commercial; Urban, Higher Density Rural; and Lower Density Rural. The supply reliability standards for each community and classification are set out in Clause 8.6.11 of the TEC. More information about distribution network performance is available at: https://www.economicregulator.tas.gov.au/electricity/regulatory-framework/distribution-network-performance-standards
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