TransGrid - Expanding NSW-QLD Transmission Transfer Capacity regulatory investment test - transmission (RIT-T)

Sector: 
Segment: 
Status: 
Commencement date: 
20 December 2019
Effective date: 
30 March 2020
Service provider/Asset: 
Contact: 
AER General Inquiries AERInquiry@aer.gov.au
AER reference: 
65587

Overview

On 30 March 2020, in accordance with the requirements of clause 5.16.6 of the National Electricity Rules, we published our determination that the preferred option identified in the Expanding NSW-QLD Transmission Transfer Capacity RIT-T satisfies the requirements of the RIT-T.

Further information on this RIT-T can be found at www.transgrid.com.au.

Background

On 20 December 2019, TransGrid submitted a request to the AER seeking a determination that the preferred option identified in the Expanding NSW-QLD Transmission Transfer Capacity RIT-T satisfies the requirements of the RIT-T.

TransGrid and Powerlink have investigated options for expanding electricity transmission transfer capacity between New South Wales and Queensland. The RIT-T process focussed on options for an incremental upgrade to the existing Queensland-New South Wales Interconnector (QNI) transfer capacity in the near term.

TransGrid and Powerlink released the final RIT-T report on 20 December 2019, which identified the following preferred option:

  • uprating the Liddell to Tamworth 330 kV lines; and
  • installing new dynamic reactive support at Tamworth and Dumaresq, and shunt capacitor banks at Tamworth, Armidale and Dumaresq.

The RIT-T is a cost-benefit analysis that transmission businesses apply before making network investments in excess of $6 million. The purpose of the RIT-T is to identify the network or non-network investment option with the highest net economic benefits across the National Electricity Market. This promotes efficient investment decisions and helps ensure that consumers pay no more than necessary for electricity network infrastructure.