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 as the cost of the new transmission line is offset by avoiding the cost of replacement works on the existing transmission line and annual generator network support payments.
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.
Following this approval, we have progressed the detailed project planning and procurement process for the project and finalised our capital cost estimates.
As the final step in the regulatory approval process, on 22 May 2020 we lodged a Contingent Project Application (CPA) with the AER seeking the funding to deliver the project. A copy of our application is available on the AER’s website.
We have also conducted an updated economic assessment for the project based on our final costings which shows that the preferred option identified in the RIT-T PACR remains the top-ranked option and continues to deliver strongly positive net market benefits for customers of around $50 million through the avoided costs of upgrading the existing line and ongoing generator network support payments. A copy of this updated assessment is available here.
This results in a minimal net price impact for the average residential customer of approximately $1 per year.
Subject to receiving all other necessary approvals, construction works are planned to begin in April 2021, with completion expected by the end of 2022.
The estimated cost of the project is approximately $290 million ($2017-18). The AER has already approved around $74 million ($2017-18) 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.
Project Assessment Conclusions Report downloads
Project Assessment Draft Report downloads
Project Specification Consultation Report downloads
Project Specification Consultation Report
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