Transgrid – Annual revenue adjustment decision 2023-24 – Waratah Super Battery project – SIPS battery service (contestable)

On 30 March 2023, the AER received a revenue adjustment proposal from Transgrid for the System Integrity Protection Scheme Service (SIPS) battery service component of the Waratah Super Battery project.

Transgrid proposed adjustments to the schedule of quarterly payments that are to be paid to it as the Network Operator for the project and, in turn, to the SIPS battery service provider (Akaysha Energy).

The proposed adjustment reflects the difference between the AUD/USD exchange rate at the date of contract close and the assumed exchange rate included in the contractual arrangements between Transgrid and Akaysha Energy.

On 16 June 2023, the AER made a decision to accept the revenue adjustment proposal in accordance with the EII Act, the EII Regulations and the AER’s Revenue determination guideline for NSW contestable network projects. The decision reduces the amount payable to Transgrid for the SIPS battery service component of the Waratah Super Battery project by around 7 per cent over the project term.

As the details of the adjustment mechanism and the service payment schedule are confidential in our revenue determination, we are not able to publish the proposed adjustment amount. To provide transparency, we will publish aggregated information on the total and annual amounts to be paid to Transgrid for contestably procured components of the Waratah Super Battery project, once we have made a determination for paired generation services. We expect to publish these amounts later this year.