Eyre Peninsula Electricity Supply Options
ElectraNet has been actively exploring options to improve the reliability of supply to Port Lincoln, including options to replace or upgrade the transmission lines serving the lower Eyre Peninsula.
Our assessment of the line condition indicates that components of the line are nearing the end of their life and require replacement in the next few years.
To enable this work, the Australian Energy Regulator (AER) approved a capital allowance for the replacement of major transmission line components on the Eyre Peninsula in our 2018-19 to 2022-23 revenue determination.
However, we have identified that full replacement of the line is more cost effective and will deliver greater benefits to Eyre Peninsula customers, improving supply reliability and capturing other market benefits.
This has been determined by undertaking the Regulatory Investment Test for Transmission (RIT-T), to assess the costs and benefits of alternative network and non-network solutions.
In October 2018 we released the Project Assessment Conclusions Report (PACR), which is the third and final step in the RIT-T process.
The PACR identified the preferred electricity supply option that delivered the greatest benefits to customers and ensures the Eyre Peninsula has a safe, reliable and secure electricity supply into the future.
The preferred option involves the construction of a new double-circuit 132 kV transmission line from Cultana to Port Lincoln, via Yadnarie, with the ability to upgrade the Cultana to Yadnarie section to 275 kV at a later date.
This option has a negligible impact on customer bills (estimated at around 10 cents per annum) as the cost of the new transmission line is fully offset by avoiding the cost of replacement works on the existing transmission line and annual generator network support payments.
This option differs from the preferred option presented in the November 2017 Project Assessment Draft Report (PADR), due to additional work undertaken and feedback received through our stakeholder engagement. The final preferred option provides greater flexibility than the earlier option presented in the PADR and can be delivered with a lower upfront cost.
On 12 April 2019 ElectraNet received approval from the AER that the preferred option identified in the Eyre Peninsula RIT-T PACR satisfies the requirements of the RIT-T.
This approval of the recommended solution means that ElectraNet can now apply to the AER to recover the costs of the project as a contingent project.
Subject to receiving all other necessary approvals, construction works are planned to begin during 2020, with completion expected by the end of 2021.
The estimated cost of the project is approximately $240 million. The AER has already approved around $80 million to replace major components of the existing line as part of our revenue determination.
We would like to thank all of the project stakeholders for their views and feedback throughout the entire RIT-T process and for helping to shape the final solution to power the Eyre Peninsula into the future.
To view the Australian Energy Regulator’s final decision click here.
Project Assessment Conclusions Report downloads
Project Assessment Draft Report downloads
Project Specification Consultation Report downloads
Project Specification Consultation Report
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