Regulatory Investment Test for Transmission
The Regulatory Investment Test for Transmission (RIT-T) is a three-stage market consultation process undertaken by ElectraNet as the principal Transmission Network Service Provider (TNSP) in South Australia.
The RIT-T is the public economic cost benefit test administered by the Australian Energy Regulator that must be undertaken for all augmentation projects with credible solutions that are estimated to cost more than $6 million.
This is an essential process that ensures the final recommended solutions have long term benefits, meet mandated reliability standards and can be scaled with changing electricity demands.
By using the three stage process, ElectraNet can identify solutions that have the potential to bring about greater net benefits to the market.
For example, a particular option may involve additional works but may then ease congestion and constraints on the existing electricity transmission network.
Other potential benefits could include:
- reduced electricity losses
- network and generation investment deferral
- generation fuel cost-savings
- avoided loss of supply for customers
- increased competition in the NEM.
What is the process?
A typical RIT-T process has three stages. The first two stages gain feedback and advice from the market, and the third presents our findings, final recommended solution, and intended course of action.
- 12 week consultation period.
- Specifies what issue needs to be solved.
- Requests feedback and advice from stakeholders.
- Stakeholders include the Australian Energy Market Operator, registered participants, and interested parties.
We engage with these parties during the 12 week consultation period and also develop a selection of proposed solutions to meet the need identified in the original report.
- Further six week consultation period.
- A summary of the advice received from stakeholders.
- Economic assessment of credible options and selection of the most suitable choice.
After receiving the feedback and advice from consultation on the Project Specification Consultation Report, we assess the proposed solutions for their economic viability as well as their potential to bring other benefits to the NEM. The outcome of the consultation on the Project Specification Consultation Report and subsequent options analysis is then documented in the Project Assessment Draft Report.
- Final stage of the process.
- Indicates the preferred solution.
- Outlines the intended course of action.
Once all feedback and advice has been received and analysed, this report will indicate the final preferred option. It will also outline an intended course of action for a reliable and cost-effective solution to meet the project’s investment need.
Frequently Asked Questions
The application of the RIT-T ensures that the recommended investment solution is the most economic option, including consideration of non-network options (for example, embedded generation or demand-side response), that satisfies the identified need while meeting mandated reliability standards and…Read more in full article
Interested parties are representatives or individuals who AEMO determines have an interest in regulated network planning and development – such as large industrial-load electricity transmission customers – who may offer a non-network solution to reduce electricity use during…Read more in full article