Powering Sydney’s Future€¦ · Powering Sydney’s Future non -network solutions. •...

Powering Sydney’s FutureNon-network SolutionsRachele WilliamsEnergy Services Manager

Powering Sydney's Future - Non Network Solutions

Who are we About usTransGrid 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

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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


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

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Inner Sydney faces two distinct challenges


• 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?

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Demand Management for Replacement

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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

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Risk vs Reward



What we need

Time scale TargetTime 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 8pmDay type Working days onlyDemand response exposure

Up to 131 to 300 hours per annum

Duration Up to 8 weeks

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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



DM remuneration

$ per blockEstablishment fee Setup paymentAvailability fee A fee per month to be made

available for dispatchIndicative dispatch fee Fee to be dispatched per MWh



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

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Powering Sydney’s Future non-networkTransGrid 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/

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

Procured vs Required

Procured

Required



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

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Lessons Learnt


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

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Lessons Learnt

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

EOI (2017) RFT (2018)

Qua

ntity

Offe

red

(MW

h)

Diesel Co-generation Demand ResponseSolar TransGrid Battery Battery


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)

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Next Steps

Thank you


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