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9th Wind Energy Conference Adelaide 18th Nov13
Citation preview
South Australia’s electricity transmission specialist
Heywood interconnector
project – expanding the
availability of wind energy
Australian Wind Energy Conference
Rainer Korte
Executive Manager Asset Management
electranet.com.au
18 November 2013
Presentation outline
> What are the details of the Heywood Interconnector
upgrade project?
> What are the projected benefits of the project?
> Future outlook for additional interconnector capacity
> Future outlook for additional wind energy in South
Australia
Slide 2
South Australia’s electricity transmission specialist
Heywood Interconnector
Upgrade Project
electranet.com.au
Bungama
Baroota
Yadnarie
Pt Lincoln
TerminalSleaford
Mt Millar
WudinnaMiddleback
Ardrossan
West
Dalrymple
Wattle Pt
Kadina East
Hummocks
Whyalla Terminal
Cultana Stony
Pt
Playford Davenport
Neuroodla
Mt Gunson
Pimba
Woomera
Olympic Dam
West
Olympic Dam NthLeigh Ck Coalfield
Leigh Ck
South
MokotaRedhill
Clements
Gap
Brinkworth
Pt Pirie
Mintaro RobertstownNorth West Bend
Monash
Berri
Waterloo
Dorrien
Roseworthy
Para
Mannum
MobilongHappy Valley
Morphett Vale
East
Starfish Hill
Keith
Kincraig
Penola West
South East
Blanche
Snuggery
Mayurra
Lake Bonney
Wind Farm
Tailem Bend
SnowtownClare
Nth
Cherry
Gdns
Tungkillo
CanowieHallett PS
Mt Gambier
Back
Callington
Kanmantoo
Canunda
Belalie
Waterloo East
Templers West
South Australia to Victoria
(Heywood) Interconnector
SA to Victoria (Heywood) interconnector context
> Nominal power transfer capability of +/‐ 460 MW
> Power transfer from the south east to Adelaide region is via a 275 kV double circuit line and two underlying 132 kV transmission lines
> Historically has predominantly been used to import power into SA
> However, in recent years the interconnector has also increasingly been used to export wind power from SA
Bungama
Baroota
Yadnarie
Pt Lincoln
TerminalSleaford
Mt Millar
WudinnaMiddleback
Ardrossan
West
Dalrymple
Wattle Pt
Kadina East
Hummocks
Whyalla Terminal
Cultana Stony
Pt
Playford Davenport
Neuroodla
Mt Gunson
Pimba
Woomera
Olympic Dam
West
Olympic Dam NthLeigh Ck Coalfield
Leigh Ck
South
MokotaRedhill
Clements
Gap
Brinkworth
Pt Pirie
Mintaro RobertstownNorth West Bend
Monash
Berri
Waterloo
Dorrien
Roseworthy
Para
Mannum
MobilongHappy Valley
Morphett Vale
East
Starfish Hill
Keith
Kincraig
Penola West
South East
Blanche
Snuggery
Mayurra
Lake Bonney
Wind Farm
Tailem Bend
SnowtownClare
Nth
Cherry
Gdns
Tungkillo
CanowieHallett PS
Mt Gambier
Back
Callington
Kanmantoo
Canunda
Belalie
Waterloo East
Templers West
South Australia to Victoria
(Heywood) Interconnector
SA to Victoria (Heywood) interconnector context
> Flow in both directions has been increasingly constrained by:
– Low thermal capacity of one of the 132 kV lines; this line is also very old and requires significant maintenance
– Inadequate equipment ratings
– Voltage stability limitations in the South East region of SA
– Insufficient transformer capacity at Heywood substation in Victoria
Project drivers
> Increase the maximum available import and export
power transfer capability between South Australia and
Victoria to:
– Enable increased utilisation of wind resources and export
of wind energy from South Australia
– Enable increased imports of lower cost generation into
South Australia, particularly at times of peak demand
– Reduce high wholesale electricity prices at peak demand
times and low to negative prices under low demand, high
wind generation, high export conditions
– Facilitate further generator competition in the wholesale
electricity market
6
Project costs and benefits
7
> Regulatory investment test
(RIT-T) demonstrated net
market benefits of more than
$190m over 25 years
> Regulator (AER) has
reviewed and confirmed
outcomes of RIT-T process
> Project will increase capacity
by about 40% from nominal
460 MW to 650 MW (and
improve capacity utilisation)
> Additional capacity to be
commissioned by July 2016
> Estimated cost is $108m
($63m in SA) ($2011-12)
Market benefits largely arise from changes
in fuel consumption and changes in
generation investment costs
Project scope (SA components)
1. Install series capacitors on the
two Tailem Bend to South East
275 kV transmission lines, at a
new Black Range site
2. Implement a control scheme to
prevent overload of South East
transformers at times of high
wind energy export
3. Upgrade assets at substations
in the South East region to
allow utilisation of at least full
winter ratings along the 275 kV
interconnector and the
underlying 132 kV transmission
network
4. Decommission two 132 kV lines
that cause thermal limitations
on interconnector capacity 8
Note – Victorian component comprising installation of
a 3rd Heywood 500/275 kV transformer and 500 kV
bus tie is being progressed by AEMO
Project drivers
> Increase the maximum available import and export
power transfer capability between South Australia and
Victoria to:
– Enable increased utilisation of wind resources and export
of wind energy from South Australia
– Enable increased imports of lower cost generation into
South Australia, particularly at times of peak demand
– Reduce high wholesale electricity prices at peak demand
times and low to negative prices under low demand, high
wind generation, high export conditions
– Facilitate further generator competition in the wholesale
electricity market
9
Project options considered
10 Source: South Australia – Victoria (Heywood) Interconnector Upgrade, RIT-T Project
Assessment Conclusions Report, January 2013, p24
A range of options were considered, including a new much larger capacity
interconnector, demand management and a generator control scheme
Option Description Capital Costs
($m 2011-12)
Notional SA
to VIC limit
(MW)
Notional VIC
to SA limit
(MW)
1a 3rd Heywood transformer + 100 Mvar
capacitor + 132 kV works 78 550 550
1b 3rd Heywood transformer + series
compensation + 132 kV works 108 650 650
2a Option 1a + 3rd South East transformer 95 550 550
2b Option 1b + 3rd South East transformer 125 650 650
3 New Krongart – Heywood 500 kV
interconnector + 275 kV works 889 2,400 2,400
4 132 kV works + 100 Mvar capacitor 41 460 460
5 200 MW demand management +
Option 1b deferred by 2 years 233 650 650
6a Control schemes + 500 kV bus tie 22 550 460
6b Control schemes + Option 1b minus
3rd Heywood transformer 84 570/ 690 460
Business case (RIT-T) process
11
Economic business case for upgrade has been
proven through a long and exhaustive public process
Feasibility study (started early 2010 with
final report published in Feb 2011)
Formal RIT-T process
- PSCR consultation report Oct 2011
- PADR draft report Sep 2012
- PACR final report Jan 2013
AER review of RIT-T outcome under
NER 5.16.6 (Apr 2013 to Sep 2013)
Business case (RIT-T) process (cont.)
12
Identify
need for
investment
and
possible
options
Assess
submissions
and makes
adjustments
as necessary
Prepare
project
assessment
draft report
(PADR)
Prepare
project
specification
consultation
report
(PSCR)
Assess
submissions
and
determines
list of credible
options
Undertake
cost benefit
assessment
and
determines
preferred
option
Issue project
assessment
conclusions
report
(PACR)
AER
undertakes
dispute
process if
the outcome
is disputed
12 weeks for submissions
30 business days for submissions 30 business days to raise a dispute
RIT-T process could typically take 12 months or more assuming no
disputes (due to mandated minimum consultation timeframes)
Business case process observations
> The Heywood interconnector upgrade RIT-T process
has set a new benchmark in terms of:
– Comprehensive and rigorous analysis undertaken
– Transparency and extent of consultation with stakeholders
> Some stakeholders took advantage of the Rules 5.16.6
process that followed the RIT-T to re-prosecute issues
that had been raised and dealt with earlier
> Cost of RIT-T process was about $2-3 million
> ElectraNet will apply to the AER at the end of 2013 for
contingent project funding for the SA components of the
project
13
South Australia’s electricity transmission specialist
Future outlook for additional
interconnector capacity and
wind energy in SA
electranet.com.au
SA wind power connections 2001 to 2013
15
ElectraNet has
successfully
negotiated 20 grid
connections in a little
over 10 years
• 3 conventional
generators
• 3 loads
• 14 wind farms
Installed wind capacity
is about 1200 MW with
another 270 MW under
construction
(Snowtown Stage 2)
Generator/ load Connected
Hallet OCGT Power Station 2001
Amcor Bottling Plant load Roseworthy 2002
Cathedral Rocks Wind Farm 2005
Lake Bonney Wind Farm Stage 1 2005
Mount Millar Wind Farm 2005
Wattle Point Wind Farm 2005
Middleback load 2006
Brown Hill Range Wind Farm (Hallett 1) 2007
Snowtown Wind Farm Stage 1 2007
Hallett Hill Wind Farm (Hallett 2) 2008
Lake Bonney Wind Farm Stage 2 2008
Clements Gap Wind Farm 2009
Quarantine OCGT Power Station Expansion Stage 5
2009
Lake Bonney Wind Farm Stage 3 2010
North Brown Hill Wind Farm (Hallett 4) 2010
Port Lincoln OCGT Power Station No. 3 2010
Waterloo Wind Farm 2010
Kanmantoo Mine load 2011
The Bluff Wind Farm (Hallett 5) 2011
SA wind penetration metrics 2012-13
16
Source: AEMO South Australian Wind Study Report 2013
Metric Value for SA
Capacity penetration – installed capacity as a %
of total installed generation 27%
Energy penetration – ratio of annual wind
energy to annual total energy demand 25%
Maximum instantaneous penetration (excluding
exports) – maximum observed ratio of wind
energy to demand at any instant of time
88%
Maximum possible instantaneous penetration –
ratio of installed capacity to minimum demand 116%
These metrics will increase with the commissioning
of the Snowtown 2 wind farm in 2014
Wind power penetration (% energy)
17
Sources: AEMO South Australian Wind Study Report 2013
Wind in power, 2012 European statistics, February 2013
3
6.9
10.8
12.7
16.3
16.8
25
27.1
0 5 10 15 20 25 30
Australia
Romania
Germany
Ireland
Spain
Portugal
South Australia
Denmark
SA capacity for increased wind power
> Capacity for increased wind is a function of electricity
demand in SA and capability to export to major load
centres in eastern states
> Feasible wind farm connections can be maximised by
optimal siting of new wind farms
> Further capacity for increased wind power will result
from…
– increased demand (e.g. major mining loads)
– current and future initiatives to increase interconnector
capacity
– Economic large scale energy storage solutions (in the
future) Slide 18
Projected 2020 NEM wind generation
19
Source: AEMO Integrating Renewable Energy – Wind Integration Studies Report,
September 2013
Region Existing
wind (MW)
Projected new
wind (MW)
Total 2020
wind (MW)
2012 minimum
demand (MW)
Queensland 0 265 265 4,098
New South Wales 265 2,117 2,382 5,124
Victoria 864 4,090 4,974 3,780
South Australia 1,205 1,350 2,555 1,035
Tasmania 308 1,060 1,368 813
NEM 2,662 8,883 11,545 15,174
Commissioning of the Snowtown 2 wind farm in 2014
will add 270 MW to existing wind capacity in SA
SA energy generation by fuel type
Slide 20
Source: AEMO South Australian Historical Market Information Report 2013, 31 July 2013
0%
10%
20%
30%
40%
50%
60%
2008-09 2009-10 2010-11 2011-12 2012-13
Tech
no
logy
sh
are
Financial year
Coal Gas Wind Interconnectors Rooftop PV Other
• Gas share has historically been 45-50%
• Coal share is declining largely replaced
by wind
SA 2012-13 energy generation by fuel type
Slide 21
Source: AEMO South Australian Historical Market Information Report 2013, 31 July 2013
Gas is clearly significant to
the SA electricity market
Gas prices: historical and forecasts
22
Gas prices are forecast to double by
mid 2020s putting upward pressure
on wholesale electricity prices –
likely to impact on generation mix
Source: AEMO 2013 Planning Consultation Methodology and Input Assumptions, May 2013
Benefits of a larger interconnector
23 Source: South Australia – Victoria (Heywood) Interconnector Upgrade, RIT-T Project
Assessment Conclusions Report, January 2013, p98 (revised central scenario)
Benefits of a larger interconnector (cont.)
24 Source: South Australia – Victoria (Heywood) Interconnector Upgrade., RIT-T Project
Assessment Conclusions Report, January 2013
Chart demonstrates that the benefits of a larger
interconnector are positive in all scenarios considered.
Further interconnector development may be feasible.
$m
NPV
Additional interconnector capacity
> ElectraNet is investigating the feasibility of options to firm up and build on existing and post upgrade interconnector capacity
> Firm up existing capacity through low cost projects funded by early application of Network Capability Component of the AER Service Target Performance Incentive Scheme
– Uprate certain transmission lines
– Apply short-term line ratings
> Further options for incremental augmentation to the Heywood interconnector that could potentially provide 100 – 150 MW additional capacity)
Slide 25
Additional interconnector capacity
> Major new 500 kV interconnector option together with
associated intra-regional works (potentially providing
up to 2,000 MW additional capacity)
> Outcomes of high level investigation will be reported in
June 2014 Transmission Annual Planning Report to
the market
Slide 26
Concluding messages
> South Australia has capacity for more wind generation
connections to the transmission network
> Current Heywood interconnector upgrade (40% increase in
interconnector capacity) will improve this position
> Connecting parties encouraged to work with ElectraNet to
explore and develop win-win outcomes – engage early and
develop a partnership approach
> Understand the NEM environment and look for optimal
outcomes within this environment
> ElectraNet is investigating the feasibility of options to firm
up and build on existing and post upgrade interconnector
capacity
Slide 27
South Australia’s electricity transmission specialist
Heywood interconnector
project – expanding the
availability of wind energy
Australian Wind Energy Conference
Rainer Korte
Executive Manager Asset Management
electranet.com.au
18 November 2013