2018-22 POWERLINK QUEENSLAND REVENUE PROPOsaL Supporting Document Powerlink Queensland Asset Management Plan (Volume 3 - Area Plans) © Copyright Powerlink Queensland 2016 Delivering better value ASSET MANAGEMENT PLAN 2015 Volume 3 – Area Plans Prepared by: Strategy and Planning Investment and Planning December 2015 Objective ID: A2265341 DISCLAIMER This Asset Management Plan has been produced to provide general information about the development of Powerlink’s network and is a summary of the best view of asset investment strategies at the time of writing. In many cases, the projects listed in the Asset Management Plan have been selected from a large number of future scenarios and are the result of preliminary investigations. As well as the need for future analysis to evaluate system and asset conditions and alternatives, there are processes described in the National Electricity Rules that need to be followed before projects can be approved. It is possible that projects listed here may change in scope or timing, be replaced by other projects or deemed unnecessary. Business decisions and actions should not be made solely on the basis of information contained here. The Asset Management Plan does not replace any current business or approval processes. Risk costs continue to be enhanced and at this stage should not be used to solely prioritise projects or prioritise projects between asset classes as currently not all risks have been modelled which leads to some risk costs being understated. Similarly some asset risks are based on desktop analysis at an asset fleet level rather than based on individual asset condition, depending on the timing of the anticipated investment need. DOCUMENT CONTROL Issue Date Responsible Person Version 30 December 2015 Initial issue 20 January 2015 Minor formatting changes APPROVALS Status Name Position Signature Date Issued Senior Asset Planning Engineer Endorsed Network Integration Manager Approved Group Manager Strategy and Planning Page 1 of 185 DOCUMENT CONTROL ........................................................................................................................ 1 APPROVALS ......................................................................................................................................... 1 ABBREVIATIONS .................................................................................................................................. 6 1. OVERVIEW .................................................................................................................................... 7 2. CAIRNS .......................................................................................................................................... 9 2.1 Introduction ................................................................................................................................... 9 2.1.1 Background ......................................................................................................................... 9 2.1.2 Description of Existing Network .......................................................................................... 9 2.2 Asset Condition .......................................................................................................................... 13 2.2.1 Lines ................................................................................................................................. 14 2.2.2 Substations ....................................................................................................................... 15 2.3 Network requirements ................................................................................................................ 16 2.3.1 Edmonton ......................................................................................................................... 16 2.3.2 Kamerunga and Northern Beaches .................................................................................. 16 2.3.3 Cairns................................................................................................................................ 17 2.3.4 Market and regulatory considerations .............................................................................. 18 2.4 Other considerations .................................................................................................................. 18 2.4.1 Environment ...................................................................................................................... 18 2.4.2 Operational telecommunications ...................................................................................... 19 2.5 Investment outlook ..................................................................................................................... 19 2.5.1 Strategic investment strategy ........................................................................................... 19 2.5.2 Targeted investment strategy ........................................................................................... 20 2.6 Conclusions ................................................................................................................................ 23 3. NORTH QUEENSLAND (NQ) ...................................................................................................... 25 3.1 Introduction ................................................................................................................................. 25 3.1.1 Area Plan Overview .......................................................................................................... 25 3.1.2 Description of the network ................................................................................................ 25 3.2 Asset condition ........................................................................................................................... 29 3.2.1 Lines ................................................................................................................................. 29 3.2.2 Substations ....................................................................................................................... 33 3.3 Network requirements ................................................................................................................ 35 3.3.1 Demand and energy forecasts ......................................................................................... 35 3.3.2 Load characteristics .......................................................................................................... 36 3.3.3 Generation development .................................................................................................. 36 3.3.4 Existing network capability................................................................................................ 36 3.3.5 Forecast network performance ......................................................................................... 37 3.3.6 Market considerations ....................................................................................................... 37 3.3.7 Other factors ..................................................................................................................... 38 3.4 Other considerations .................................................................................................................. 38 3.4.1 Telecommunications ......................................................................................................... 38 3.4.2 Easements ........................................................................................................................ 38 3.5 Investment Outlook .................................................................................................................... 39 3.5.1 Strathmore to Ross - Strategic Investment Strategy ........................................................ 39 3.6 Conclusions ................................................................................................................................ 43 Page 2 of 185 4. MACKAY ...................................................................................................................................... 46 4.1 Introduction ................................................................................................................................. 46 4.1.1 Background ....................................................................................................................... 46 4.1.2 Description of Existing Network ........................................................................................ 46 4.2 Asset Condition .......................................................................................................................... 50 4.2.1 Transmission Lines ........................................................................................................... 50 4.2.2 Substations ....................................................................................................................... 53 4.3 Network Requirements ............................................................................................................... 56 4.3.1 Demand forecast .............................................................................................................. 56 4.3.2 Market and Regulatory Considerations ............................................................................ 56 4.4 Other Considerations ................................................................................................................