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  • Powering Sydney’s Future Non-network Solutions Rachele Williams Energy Services Manager

  • Powering Sydney's Future - Non Network Solutions

    Who are we About us TransGrid is the operator and manager of the NSW transmission network.

    NSW is the largest region in the National Electricity Market

    32% of Australia’s population

    32% of energy in the NEM.

    Our network includes:

    13,000 km of transmission lines and cables

    100 substations

    2,300 km of optical fibre

    Legend

    2 /

  • Powering Sydney's Future - Non Network Solutions3

    The current electricity supply network to Inner Sydney • Inner Sydney’s transmission network powers more than 500,000 homes

    and businesses in the CBD and surrounding areas

    • Currently serviced by a web of cables, many being more than 40 years old and approaching the end of their serviceable life

    • Without reinforcement, there is an increasing risk of blackouts and load shedding from 2022/23

    Bondi

    Sydney Airport

    Hurstville

    Impacted area

    Supply area

  • Powering Sydney's Future - Non Network Solutions

    Inner Sydney is facing two major challenges, increasing risk to electricity supply security

    1. Increasing demand • Demand within Inner Sydney is increasing, with

    forecasts predicting a higher future demand than the current network capacity will be able to support

    2. Deteriorating assets • The current web of Ausgrid cables that service the CBD

    are old and nearing the end of their lives • As the cables age, the risks of a failure increases • TransGrid has undertaken detailed cable condition

    assessment

    4

    Inner Sydney faces two distinct challenges

  • Powering Sydney's Future - Non Network Solutions

    • the use of non-network solutions from summer 2018/19 to summer 2021/22 to economically reduce the risk of unserved energy and defer installation of a new 330kV cable;

    • installing one 330 kV cable with provision for a second at a later stage, with commissioning of the first cable in time for the 2022/23 summer;

    • operating the existing Cable 41 at 132 kV; and

    • decommissioning Ausgrid’s fluid filled cables supplying inner Sydney in two stages

    What’s the solution?

    5

  • Powering Sydney's Future - Non Network Solutions

    Demand Management for Replacement

    6

  • Powering Sydney's Future - Non Network Solutions

    Location • Referred to as Inner Sydney Area • Contains the CBD, commercial and

    residential customers • Non-Network solutions in this area

    are very effective • Outside of this area reductions are

    not as effective

    7

  • Risk vs Reward

    Powering Sydney's Future - Non Network Solutions8

  • Powering Sydney's Future - Non Network Solutions

    What we need

    Time scale Target Time of year A three month support period, within a 5

    month support window between the 1st of December to the 30th of April

    The timing of the three month period will be based on the long range summer

    forecast to try and align with the hottest period of the year.

    Time of day 8am to 8pm Day type Working days only Demand response exposure

    Up to 131 to 300 hours per annum

    Duration Up to 8 weeks

    9

  • Flat Demand Reduction Profile

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    8 9 9 10 10 11 11 12 12 13 13 14 14 15 15 16 16 17 17 18 18 19 19 20

    Daily Load Profile

    2018/2019 20 MW 2019/2020 40 MW 2020/2021 60 MW 2021/2022 80 MW

    Powering Sydney's Future - Non Network Solutions10

  • Powering Sydney's Future - Non Network Solutions11

    DM remuneration

    $ per block Establishment fee Setup payment Availability fee A fee per month to be made

    available for dispatch Indicative dispatch fee Fee to be dispatched per MWh

    Powering Sydney's Future - Non Network Solutions

  • Powering Sydney's Future - Non Network Solutions

    Selection criteria

    1) Sufficient capacity (MW) AND duration (MWh) 2) Technical characteristics

    • Location

    • Availability • Notification time • Dispatch method • Metering • Timeframe for delivery

    3) Cost efficiency

    2022 2023 2024

    12

  • Powering Sydney's Future - Non Network Solutions

    Powering Sydney’s Future non-network TransGrid has commenced its first round request for tenders for Powering Sydney’s Future non-network solutions.

    • Non-network solutions are a key part of TransGrid’s one year project deferment

    • Non-network requirements: • 20MW for summer 2018/19 • 40MW for the following three summers 2019/20,

    2020/21, and 2021/22 • Additional 20MW for 2020/21 and 40MW for

    2021/22 will form a second round tender • Tenders closed 31 July 2018 • https://www.tenderlink.com/transgrid/

    13

    https://www.tenderlink.com/transgrid/

  • Procured vs Required

    Procured

    Required

    Powering Sydney's Future - Non Network Solutions14

  • Powering Sydney's Future - Non Network Solutions

    A request for tender (RFT) for round 1 was issued in May 2018 and closed in September 2018. • 20 companies that provide non-network solutions downloaded the RFT

    • 7 companies responded to the RFT

    • TransGrid contacted the 13 companies who did not respond to understand why: – No existing clients in area – Physical constraints affecting what they could offer – Not commercial for the 3 months of the year it would be required – Didn’t think they would comply

    • Following discussions, 2 companies who did not respond are interested responding to the next stage for the following summers

    15

    Lessons Learnt

  • Powering Sydney's Future - Non Network Solutions

    The capacity offered to the RFT in 2018 was around one third of the capacity offered to the EOI in 2017. • Of the responses:

    – Procuring 20 MW of diesel generation for four summers from one respondent

    – Some respondents need to confirm that generators can operate grid-connected

    – Some respondents were higher cost and can be considered again in next stage

    – Some respondents did not have customers or a customer acquisition plan

    16

    Lessons Learnt

    0

    5,000

    10,000

    15,000

    20,000

    25,000

    30,000

    35,000

    EOI (2017) RFT (2018)

    Q ua

    nt ity

    O ffe

    re d

    (M W

    h)

    Diesel Co-generation Demand Response Solar TransGrid Battery Battery

  • Powering Sydney's Future - Non Network Solutions

    Next steps: • TransGrid will continue to work with respondents who do not have customers or a

    customer acquisition plan to accommodate trial installations that can grow in the future

    • A RFT has been issued for supply and installation of a grid-scale battery at TransGrid’s Beaconsfield substation, for summer 2019/20 onwards

    • A RFT for the second stage of non-network solutions will be issued in early 2019, for three summers from 2019/20 to 2021/22 (additional to the 20 MW already procured)

    17

    Next Steps

  • Thank you

    Powering Sydney's Future - Non Network Solutions18

    Slide Number 1 Who are we The current electricity supply network to Inner Sydney Inner Sydney faces two distinct challenges What’s the solution? Demand Management for Replacement Location Risk vs Reward What we need Flat Demand Reduction Profile DM remuneration Selection criteria Powering Sydney’s Future non-network Procured vs Required Lessons Learnt Lessons Learnt Next Steps Slide Number 18