AER - Determination - Letter to ElectraNet - Re SA system strength gap - 18 February 2019

The AER has responded to a request from ElectraNet to determine that its proposal to install four high-inertia synchronous condensers satisfies an economic evaluation equivalent to a regulatory investment test for transmission. The synchronous condensers aim to address an SA system strength gap that AEMO has declared, whilst also addressing an SA inertia shortfall. This determination is a trigger event that is required before ElectraNet can submit a contingent project application to the AER to amend its revenue determination to account for the costs of the project.