Proposed New Large Network Asset Adelaide Central Region South Australia
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` PROPOSED NEW LARGE NETWORK ASSET ADELAIDE CENTRAL REGION SOUTH AUSTRALIA FINAL REPORT ElectraNet Pty Ltd (ABN 41 094 482 416) 10 July 2009 COPYRIGHT © ElectraNet and ETSA Utilities - All Rights Reserved This document is protected by copyright vested jointly in ElectraNet and ETSA Utilities. No part of this document may be reproduced in any form without limitation unless prior written permission is obtained jointly from ElectraNet and ETSA Utilities. Important Information and Disclaimer This final report has been prepared for the purposes of clause 5.6.6 of the National Electricity Rules. It may be used by Registered Participants and interested parties only for the purposes of the consultation process under that clause. This final report should not be used or relied on for any other purposes. The contents of this final report may differ from the contents of the preceding application notice. This final report contains analysis based on estimates prepared by, and assumptions made by, ElectraNet and ETSA Utilities. The document has also been prepared using information, including cost information, provided by a number of third parties. The cost estimates used to evaluate the options described are based on the best information available to ElectraNet and ETSA Utilities at the time of preparing the report and should not be taken as necessarily reflecting the actual costs of later implementing an option. The final report contains the results of financial modelling and economic analysis undertaken by ElectraNet and ETSA Utilities. It contains assumptions regarding, among other things, economic growth and load forecasts that may or may not prove to be correct. While care was taken in preparation of the information in this final report, and it is provided in good faith, neither ElectraNet nor ETSA Utilities warrant the accuracy of the contents of this final report, and so far as the law allows accept no responsibility or liability for any loss or damage that may be incurred by any person acting in reliance on this final report or assumptions drawn from it. FINAL REPORT – Proposed New Large Network Asset, Adelaide Central Region, South Australia Page 2 of 83 Table of Contents PREFACE ...............................................................................................................................................5 EXECUTIVE SUMMARY ........................................................................................................................6 1. INTRODUCTION.............................................................................................................................7 2. BACKGROUND: ELECTRICITY SUPPLY SYSTEM....................................................................9 2.1 Geographic Area ...................................................................................................................9 2.2 Existing Supply Arrangements............................................................................................10 2.3 Committed Network Developments ....................................................................................11 2.4 Existing and committed generation facilities and demand side management ....................11 3. BACKGROUND: ELECTRICITY DEMAND ................................................................................14 3.1 Overview .............................................................................................................................14 3.2 Demand forecast.................................................................................................................14 3.3 Pattern of Use .....................................................................................................................15 4. ADELAIDE CENTRAL SERVICE OBLIGATIONS.......................................................................16 4.1 National Electricity Rules ....................................................................................................16 4.2 South Australian Electricity Transmission Code .................................................................16 5. PROJECTED NETWORK LIMITATIONS.....................................................................................18 6. SUBMISSIONS TO THE APPLICATION NOTICE.......................................................................18 7. OPTIONS CONSIDERED .............................................................................................................19 7.1 Transmission substation site selection ...............................................................................20 7.2 Transmission Supply Options .............................................................................................25 7.3 275kV supply between TIPS and City West substation......................................................27 7.4 Site and Supply Source options comparison ......................................................................35 8. TECHNICAL DETAILS .................................................................................................................39 8.1 Future Network Development .............................................................................................39 8.2 City West Transformer Capacity .........................................................................................41 8.3 Capacity of the 275kV Connection to the City West Substation.........................................41 8.4 City West Initial and Ultimate Composition.........................................................................46 8.5 Selection of Substation Technology....................................................................................53 8.6 66kV Connection to the New Substation ............................................................................54 8.7 Scope of Work for Selected Option.....................................................................................56 8.8 Construction Timetable and Commissioning Date..............................................................57 8.9 Compliance with Service Obligations..................................................................................58 9. SCENARIOS CONSIDERED ........................................................................................................60 9.1 Context for Evaluation of Options .......................................................................................60 9.2 Assumed Market Development Scenarios..........................................................................60 9.2.1 Existing Network and Future Transmission Development ..................................................60 9.2.2 Variations in Demand Growth .............................................................................................60 9.2.3 Existing and Committed Generators and Demand Side Developments.............................61 9.2.4 Potential New Generation ...................................................................................................61 10. FORMAT AND INPUTS TO ANALYSIS.......................................................................................62 10.1 Regulatory Test Requirements ...........................................................................................62 10.2 Inputs to Analysis ................................................................................................................62 10.3 Cost of Network Augmentations .........................................................................................62 10.4 Other Inputs to Analysis......................................................................................................62 10.5 Consideration of SIM 2 costs ..............................................................................................63 FINAL REPORT – Proposed New Large Network Asset, Adelaide Central Region, South Australia Page 3 of 83 11. ECONOMIC ANALYSIS ...............................................................................................................64 11.1 Inputs to Analysis ................................................................................................................64 11.2 Inter-network Impact ...........................................................................................................65 12. SUMMARY AND CONCLUSIONS ...............................................................................................66 13. RECOMMENDATION ...................................................................................................................67 14. CONSULTATION..........................................................................................................................68 15. GLOSSARY ..................................................................................................................................70 APPENDIX A – FINANCIAL ANALYSIS .............................................................................................72 FINAL REPORT – Proposed New Large Network Asset, Adelaide Central Region, South Australia Page 4 of 83 Preface On 10 January 2008, ElectraNet published an Application Notice on its website that proposed the establishment of a new substation on the outskirts of Adelaide’s central business district (a new large transmission network asset) that would increase the reliability of supply to the Adelaide Central region to the level specified in the July 2008 Electricity Transmission Code (ETC). The closing date for submissions on the Application Notice was 27 February