I nte g ra te d syste m pla nning Ro le o f the I SP David - PowerPoint PPT Presentation

I nte g ra te d syste m pla nning Ro le o f the I SP David Swift ESB forum October 2018

E ne rg y mix a nd infra struc ture a re tra nsfo rming A profound transition of the NEM is underway: TO Rapidly changing world: FROM A static world:  Consumption flat, but demand peaks even more pronounced under extremes  Predictable demand growth  Supplies involve geographically dispersed, technologically diverse  Predominantly based on coal resources and gas resources  Requiring:  Flexible dispatchable plant  A power system designed around bulk energy transport  Energy storage on main highways from major  Visibility and controllability of (synchronous) gen centres resources, including embedded  Efficient re-configuration of the 2 transmission system to support

• Changing supply mix Why do we means greater need to share reserves to ne e d • Manage variability syste m-wide • Access reliability and economic diversity pla nning ? benefits • Optimise assets • Increase resilience • Changes role of transmission, and increases the value it provides • Changes the balance of cost and benefits between local and system wide planning

Wha t is syste m-wide pla nning ? • Relevant information is assimilated and optimised to form holistic plan using a systems approach across the NEM Technical • Identify needs – Reliability and & Security • TNSPs - local technical and reliability/security needs resilience needs • AEMO – power system reliability/security and resilience needs needs • Governments - regional policy needs Public policy • Identify credible network & non-network options that needs address the need • AEMO determines range of options in collaboration and consultation with networks and wider industry Integrated system and economic • Identify developments that efficiently meet identified modelling needs • AEMO undertakes integrated power system and economic modelling • Systems approach that optimises overall outcomes Integrated system plan • Identify the combinations of projects that result in secure, reliable and operable power system with greatest net market benefits

Pro c e ss fo r de ve lo pme nt o f a n I SP • The ISP was developed as a response to recommendations by the Finkel Review • While the development of the ISP used powers and fulfilled obligations under the current Rules for the development of an NTNDP, there is not an appropriate Regulatory framework for the robust development, approval and implementation of such a Plan. • AEMO is keen to work with others to co-create such a framework.

F uture pro c e ss fo r pla nning

Ove ra ll fra me wo rk fo r the I SP • AEMO supports the development of a new regulatory framework to deliver an actionable ISP • Framework could be broadly built on Option 4 in the AEMC’s COGATI Options paper

Hig h le ve l pro po se d pro c e ss Develop plan Implement plan Scenario Identify Identify Identify options Funding the Deliver and operate development system development & select delivery solution needs needs solution • Local • TNSP • Detailed • Establish • Identify • AER assesses scenarios, reliability combinations undertakes costing & implementation – and detailed planning, inputs & of system does not need methodology security developments design, implement re-justification of needs options the that efficiently need analysis to investment meet needs • NEM • AER determines implement reliability • Develop the revenue ISP and ISP allowance security • TNSP develops • Public efficient policy implement ation plans Comprehensive and broad based consultation by AEMO Comprehensive consultation by TNSPs If outcomes of TNSP process If outcomes of TNSP process are not materially change published ISP materially different to ISP assumptions, results, further analysis is required TNSP should be able to commence implementation – streamlined regulatory approvals

I SP c o nsulta tio n • Robust inclusive consultation Transparent process: • Consumers information flows & • Project process ensures developers credible results. • Network investors • Qualified, independent, not for profit decision maker

• Development and implementation of such a process is a Sta tus o f major undertaking and will take some time c urre nt I SP • Existing ISP was not developed under such a process • However the ISP identified a range of modest upgrades (Group 1) which warrant immediate action – delaying these until a second ISP is developed under a new process would forego significant benefits.

Pro c e ss fo r imple me nting Gro up 1 pro je c ts

20 ye a r inte g ra te d syste m pla n

Sta tus o f Gro up 1 Western Victoria Renewable Integration – regulatory process underway pro je c ts Queensland to New South Wales upgrade – engineering work underway, regulatory process yet to commence Victoria to New South Wales upgrade – assessments underway, Regulatory process about to commence. South Australia System Strength – To improve system strength in South Australia, removing the need for market intervention and supporting renewable energy development. Project is being implemented using transitional Rules arrangements relating to system strength. 13

A new 750 MW interconnector between New South Wales and South Australia – Currently advancing through the regulatory Sta tus o f process. Gro up 2, 3 A medium to large upgrade of the Queensland to New South Wales interconnector – Preliminary studies undertaken. pro je c ts SnowyLink North – an upgrade that provides capacity from Snowy 2.0 to Sydney (also supports renewables and increased transfer with Victoria). Regulatory processes are pending decision on Snowy Hydro. Distributed Energy Resource (DER) Integration in South Australia – AEMO is progressing the DER co-ordination project via the Open Networks initiative with the ENA. SnowyLink South – an upgrade that provides capacity from New South Wales to Victoria, including provision for Snowy 2.0. Regulatory processes are pending decision on Snowy Hydro. Battery of the Nation/MarinusLink - Currently advancing through the regulatory process. 14

Ne e d to fa st tra c k Gro up 1 pro je c ts 15

E xpe diting Gro up 1 • Key = expedited regulatory process needed – all RIT-T’s needed complete by mid-Q3 2019 pro je c ts • Process to achieve this needed urgently 16