REQUEST FOR INFORMATION / REQUEST FOR PROPOSALS
ElectraNet reference: Request for Information RFI 001/10
ETSA Utilities reference: Request for Proposals RFP 001/10
Projected Distribution Network Constraint:
Bulk Electricity Supply to the Fleurieu
Peninsula
Evaluation Progress Report #1
ElectraNet – ETSA Utilities
August 2010
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This document is protected by copyright jointly vested in ElectraNet and ETSA Utilities. No part
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permission is obtained from both ElectraNet and ETSA Utilities.
Background
In March 2010 ETSA Utilities and ElectraNet published a joint RFI / RFP 001/10 “Projected
Distribution Network Constraint: Bulk Electricity Supply to the Fleurieu Peninsula” which detailed
impending constraints in the supply of electricity to the Fleurieu Peninsula. An extract from the
executive summary follows.
“ETSA Utilities has identified that the capacity of the electrical supply system to
the Fleurieu Peninsula is nearing its limits and that major expenditure will soon be
required to upgrade it to maintain both its reliability and the technical standards
of supply such as voltage levels. As a consequence of the estimated project
value being in excess of ten million dollars the project falls outside of the scope
of ESCOSA’s Guideline 12 process, however both companies are still bound by
the NER to consult with Registered Participants and Interested Parties regarding
projected sub transmission network limitations and to issue a Request for
Information paper to potential solution providers.
The “Request for Information (RFI 001/10) / Request for Proposals (RFP001/10):
Bulk Electricity Supply to the Fleurieu Peninsula Region” document outlines the
consultation process being undertaken and details the projected network
limitations applying to the existing Fleurieu Peninsula supply system. It seeks
submissions from Registered Participants, Interested Parties and customers for
possible solutions that can economically and reliably provide adequate future
capacity in the Fleurieu Peninsula Region.
A full copy of the document is available on ETSA Utilities web site at:
http://www.etsautilities.com.au/public/download.jsp?id=11540
Responses Received
Eight responses were received in response to the RFP, of these six had sufficient detail to move
to the evaluation phase. Five of these six involved the installation of peak lopping generators in
various locations and sizes. The sixth was for the installation of Dynamic VAr support at both
Victor Harbor and Goolwa. A brief description of the six compliant proposals follows.
American Superconductor
This company proposed the installation of reactive voltage support at both Victor Harbor and
Goolwa to increase the power transfer capability of existing and upgraded lines.
Cummins
This company proposed the installation of two diesel power stations (40 MW at 66kV and 10
MW at 11 kV ) to be located at Square Water Hole and Goolwa to reduce the load at risk
during peak summer periods. These units will be large enough to provide some N-1 coverage
during off peak periods.
Energy Power Systems
This company proposed the installation of one 66 kV power station (up to 30 MW) to be
connected at Willunga and the possibility of one or more small 11kV power stations to be
connected at Goolwa, Victor Harbor etc. to reduce the load at risk during the summer peak
periods.
Environmental Energy Australia
This company proposed the installation of three diesel 66kV power stations to be located at
Goolwa (2 x 18 MW), Victor Harbor (2 x 25 MW) and Willunga (2 x 25 MW) to off load the load
at risk during the summer peak period. These units will be large enough to provide an N-1
service to Victor Harbor, Goolwa and Square Water Hole.
Investec
This company proposed the installation of a diesel 66kV power station (30 MW to 180 MW) on
the Square Water Hole to Goolwa line to be located near Goolwa to offload the risk during the
summer peak period. This unit will be large enough to provide an N-1 service to Goolwa and
Square Water Hole and, with the addition of a second line, to Victor Harbor.
Vibe Energy
This company proposed the installation of a diesel 11kV power station ( 7 x 1.15 MVA) to be
located at Goolwa to reduce the load at risk during peak summer periods.
Progress to Date
We have completed our initial technical analysis of the three network options that were
described in the RFP:
–
Commission a new Connection Point in the Southern Fleurieu Peninsula in the
Middleton, Goolwa, Currency Creek area in 2016; or
–
Commission a new Connection Point near Mt Compass also in 2016; or
–
Delay the commissioning of the Mt Compass Connection Point until 2024 by a
combination of sub transmission enhancements and an upgrade of the existing
Morphett Vale East Connection Point.
The results of our analysis show that the three options are within the margin of error at our
current level of cost estimates, consequently more refined estimates are being developed.
We have also completed about 50% of our initial technical analysis of the six proposals above
and have requested and received clarification from the proponents on a number of minor
queries.
The nature of a number of the proposals has raised some technical issues with regard to the
Regulatory Test regime. ETSA Utilities and ElectraNet are seeking clarification of these issues to
ensure compliance with regulations. We are also seeking confirmation from external
specialists on certain system stability questions that have been raised during the initial analysis
of the various options.
Next Actions
By year end ETSA Utilities and ElectraNet intend to complete their analysis of each of the
proposals and compare them both technically and economically with the three traditional
network solutions. This analysis will identify one or more preferred solutions within the margin of
error of our improved cost projections.
Where as a result of our analysis we believe that some of the proposers’ solutions can be
improved through minor variations or by being combined with other providers or the network
solutions we will inform the proposer and ask if they are willing for the modified solution to be
used in place of the original. Where the final list of preferred solutions involve any of the
proposals above we will request revised proposals with firm costs and assurances with regard to
Environmental and other necessary approvals.
All providers will be treated on an equal basis with the intention being to find the most effective
solution (as defined by the AER Regulatory test) to the impending constraints.
It is our intention to keep all proposers informed of progress on evaluating the responses to the
RFI/RFP and will issue a second progress report in October 2010.