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Energy in Tasmania – Performance Report

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Energy in Tasmania – Performance Report ENERGY IN TASMANIA – PERFORMANCE REPORT 2014– 15 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) 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 Printed January 2016 Office of the Tasmanian Economic Regulator ISBN 978-0-7246-5388-1 Copyright © Office of the Tasmanian Economic Regulator ENERGY IN TASMANIA - PERFORMANCE REPORT 2014-15 TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................... 1 ACRONYMS ............................................................................................................... I EXECUTIVE SUMMARY ........................................................................................... V 1 OVERVIEW OF THE TASMANIAN ENERGY INDUSTRY ............................. 1 2 ENERGY CONSUMPTION IN TASMANIA ..................................................... 5 2.1 Introduction ................................................................................. 5 2.2 Residential energy consumption ................................................. 6 2.3 Commercial energy consumption ............................................... 7 2.4 Industry energy consumption ...................................................... 8 2.5 Electricity demand ....................................................................... 8 3 OVERVIEW OF THE TASMANIAN ELECTRICITY SUPPLY INDUSTRY ... 13 3.1 Introduction ............................................................................... 13 3.2 Industry structure and participants ............................................ 13 4 ELECTRICITY REGULATION ...................................................................... 15 4.1 Introduction ............................................................................... 15 4.2 Legislative and regulatory framework ....................................... 15 5 REGULATORY BODIES .............................................................................. 19 5.1 Introduction ............................................................................... 19 5.2 Australian Energy Market Commission ..................................... 19 5.3 Australian Energy Regulator ..................................................... 20 5.4 Australian Energy Market Operator .......................................... 21 5.5 Tasmanian Economic Regulator ............................................... 22 5.5.1 Overview ................................................................................. 22 5.5.2 Pricing and pricing related functions ....................................... 23 5.5.3 Regulatory reporting ............................................................... 28 5.5.4 Performance reporting ............................................................ 29 ENERGY IN TASMANIA - PERFORMANCE REPORT 2014-15 5.5.5 Customer Consultative Committee ......................................... 29 6 OTHER GOVERNMENT BODIES ................................................................ 31 6.1 Introduction ............................................................................... 31 6.2 Department of Treasury and Finance ....................................... 31 6.3 Energy Policy Branch, Department of State Growth ................. 31 6.4 Energy Ombudsman ................................................................. 32 6.5 Electrical safety standards and licensing .................................. 33 6.6 Climate change policies and regulators .................................... 34 6.6.1 Carbon pricing mechanism ..................................................... 34 6.6.2 Direct Action Policy ................................................................. 35 6.6.3 Renewable Energy Target ...................................................... 35 6.6.4 Clean Energy Regulator ......................................................... 37 6.6.5 Clean Energy Finance Corporation ........................................ 37 6.6.6 Australian Renewable Energy Agency ................................... 37 6.6.7 Climate Change Authority ....................................................... 37 7 GENERATION .............................................................................................. 39 7.1 Installed capacity ...................................................................... 39 7.2 Reserve plant margin ................................................................ 40 7.3 Hydro generation ...................................................................... 41 7.3.1 Water storage ......................................................................... 42 7.4 Thermal generation ................................................................... 43 7.5 Wind generation ........................................................................ 45 7.6 Embedded generation ............................................................... 46 7.6.1 Solar Photovoltaic ................................................................... 46 7.6.2 Solar hot water ........................................................................ 48 7.6.3 Large embedded generators .................................................. 48 7.7 Generation performance ........................................................... 49 7.7.1 Availability ............................................................................... 49 7.7.2 Planned outage factor............................................................. 51 7.7.3 Forced outage factor............................................................... 52 7.7.4 System adequacy ................................................................... 53 7.7.5 Basslink imports ...................................................................... 54 8 TRANSMISSION ........................................................................................... 57 8.1 Introduction ............................................................................... 57 8.2 Availability ................................................................................. 57 ENERGY IN TASMANIA - PERFORMANCE REPORT 2014-15 8.3 Reliability ................................................................................... 58 8.4 Comparison with other jurisdictions .......................................... 60 8.5 Average outage duration ........................................................... 62 8.6 Connection site performance .................................................... 62 8.6.1 Unplanned outages ................................................................. 63 8.6.2 Planned outages ..................................................................... 63 8.7 Connection site security for firm connection points ................... 63 8.8 Constraints ................................................................................ 64 8.8.1 Transmission system constraints ........................................... 64 8.8.2 Transmission network capacity constraints ............................ 65 8.8.3 Terminal substation capacity constraints................................ 65 8.9 System losses ........................................................................... 65 8.9.1 Energy losses in the NEM ...................................................... 65 8.10 Transmission security and planning criteria .............................. 66 8.11 Basslink Interconnector ............................................................. 66 8.11.1 Basslink operation .................................................................. 68 8.12 Basslink technical performance ................................................ 68 8.12.1 Basslink imports (market operations) ..................................... 69 9 ELECTRICITY DISTRIBUTION .................................................................... 71 9.1 Introduction ............................................................................... 71 9.2 The distribution network ............................................................ 71 9.3 Performance measures ............................................................. 72 9.3.1 SAIDI ...................................................................................... 72 9.3.2 SAIFI ....................................................................................... 72 9.3.3 CAIDI ...................................................................................... 73 9.4 Performance standards ............................................................. 73 9.4.1 Communities ........................................................................... 74 9.5 Overall distribution network performance ................................. 75 9.5.1 Major event days .................................................................... 76 9.5.2 Performance excluding Major Event Days ............................. 77 9.5.3 Cause of supply interruptions ................................................. 77 9.5.4 Response to interruptions ....................................................... 80 9.6 Distribution network performance for TEC community categories ................................................................................. 81 9.6.1 Critical infrastructure category ................................................ 81 9.6.2 High density commercial category .........................................
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