100 PER CENT RENEWABLES STUDY ELECTRICITY TRANSMISSION COST ASSUMPTIONS

VERSION: DATE: 1.0 18 September 2012

100 PER CENT RENEWABLES STUDY ELECTRICITY TRANSMISSION COST ASSUMPTIONS

Contents
Introduction ................................................................................................................... 3 1 2 3
3.1 3.2

Introduction ...................................................................................................... 3 Developing a view of required transmission ..................................................... 3 Transmission cost estimates ............................................................................ 3
High Voltage AC (HVAC)............................................................................................ 4 High Voltage DC (HVDC) ........................................................................................... 6

Disclaimer ..................................................................................................................... 7

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100 PER CENT RENEWABLES STUDY ELECTRICITY TRANSMISSION COST ASSUMPTIONS

Introduction 1 Introduction
The document sets out the approach and assumptions that the Australian Energy Market Operator (AEMO) will use in developing a view of the transmission network and its cost that will support the 100 per cent renewables study.

2 Developing a view of required transmission

Through supply modelling, AEMO will determine a least-cost generation mix of renewable sources to meet future electricity demand under two scenarios. That generation will be spread geographically and needs to be connected to the demand centres meeting reliability requirements. The transmission network will be required to support the maximum generation output from the various generation centres. Given the expected amount of intermittent generation, power flows on the transmission network might also be intermittent and will require transmission corridors to support significant flows from the intermittent generation sources even at low average utilisation factors. For the purposes of this scenario work, AEMO will use a high level approach to identifying the required transmission network. Transmission facilities will be included that meet 10 per cent chance of exceedence (POE) maximum demand levels at a reliability that allows the outage of a single network element without a significant amount of load at risk. The transmission technology - alternating current (AC) versus direct current (DC) - and voltage level will be selected to match the expected maximum power flows, distances and intermediate connection points. A high voltage DC (HVDC) line is most appropriate to transmit power over long distances with few or no intermediate connections. The consideration of the required transmission and its associated cost may have implications for whether the generation expansion (and its location) could be considered least-cost. This consideration might result in iterating and revising the generation expansion with a view to also minimise the transmission costs.

3 Transmission cost estimates

The cost of the transmission network will be developed using AEMOs transmission unit cost estimates. These are planning-type estimates that do not take into account geographical or local conditions that would apply to any given project. However, they are considered appropriate for a first level order of magnitude estimate. The cost of a transmission line is determined by multiplying the length of the line in kilometres by the estimated cost-per-kilometre. A substation will be made up of various components depending on the size requirements and voltage levels of the substation. The total cost will be derived using a building-block approach. AEMO is developing high level building blocks for this study based on the cost estimates that are being used in the 2012 National Transmission Network Development Plan (NTNDP). The following tables provide details about those unit cost estimates. To connect offshore renewable energy to the onshore transmission grid, either AC or DC submarine cable would be required.1

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100 PER CENT RENEWABLES STUDY ELECTRICITY TRANSMISSION COST ASSUMPTIONS

3.1 Costs for high voltage alternating current (HVAC) facilities

Table 1 HVAC transmission lines
Plant Cost estimate ($M per km) Other factors

500 kV double circuit transmission line (Capacity per circuit 2500 MVA-3500 MVA) 500 kV single circuit transmission line (Capacity per circuit 2500 MVA - 3500 MVA) 220 kV, 275 kV or 330 kV double circuit transmission line (Capacity per circuit 800, 1100, 1300 MVA) 220 kV, 275 kV or 330 kV single circuit transmission line (Capacity per circuit 800, 1100, 1300 MVA) 220 kV double circuit transmission line (Capacity per circuit 500 MVA) 132 kV double circuit transmission line (Capacity per circuit 100- 250 MVA) 132 kV single circuit transmission line (Capacity per circuit 75, 100, 150 175 MVA) Table 2 Transformers
Plant

1.8 1.4 1.1 0.7 0.75 0.7 0.4 Multiply by two for length < 20 km

Cost estimate ($M)

Comments

1000 MVA 500/330 kV transformer 370 MVA 500/275 kV transformer 1000 MVA 500/220 kV transformer 750 MVA 500/220 kV transformer 600 MVA 500/220 kV transformer 700 MVA 330/220 kV transformer 400 MVA 330/220 kV transformer 225 MVA 330/220 kV transformer 150 MVA 220/110 kV transformer Table 3 Switch bays

18 11 18 16 15 12 9 8 5

3 x 1 phase units

3 phase units

Cost estimate ($M) Switch bay 500 kV 330 kV 275 kV 220 kV 132 kV

3 Breaker Diameter - 3CBs 3 Breaker Diameter - 2CBs 3 Breaker Diameter - 1CBs 2 Breaker Diameter - 2CBs 2 Breaker Diameter -1CBs 1 Breaker Diameter - 1CBs

7.9 6.7 5.4 6.5 5.2 3.9

4.7 3.8 2.9 3.6 2.7 2.2

4.1 3.3 2.5 2.7 1.9 1.6

3.0 2.3 1.6 2.0 1.3 1.15

2.1 1.7 1.3 1.7 1.3 0.7

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100 PER CENT RENEWABLES STUDY ELECTRICITY TRANSMISSION COST ASSUMPTIONS

Table 4 Substation establishment

Site area (m2) Cost estimate ($M)

5,000 7,500 10,000 15,000 20,000 25,000 30,000 35,000

7 8 10 13 16 19 22 25

Table 5 Site area requirements for switch bays

Switch bay 500 kV 330 kV Site area (m2) 275 kV 220 kV 132 kV

3 Breaker Diameter - 3CBs 3 Breaker Diameter - 2CBs 3 Breaker Diameter - 1CBs 2 Breaker Diameter - 2CBs 2 Breaker Diameter - 1CBs 1 Breaker Diameter - 1CBs

15,000 15,000 15,000 15,000 15,000 10,000

10,000 10,000 10,000 10,000 10,000 7,500

10,000 10,000 10,000 10,000 10,000 7,500

10,000 10,000 10,000 10,000 10,000 7,500

7,500 7,500 7,500 7,500 7,500 5,000

Table 6 Reactive sources

Plant Cost estimate ($M) Comments

SVC -100 / +300 MVAr (220 kV, 275 kV or 330 kV) Series capacitors 1000MVA (220 kV, 275 kV or 330 kV) Shunt cap bank 200MVAr (330 kV) Shunt cap bank 200MVAr (275 kV) Shunt cap bank 200MVAr (220 kV) Shunt cap bank 120MVAr (220 kV, 275 kV or 330 kV) Shunt cap bank 100MVAr (110 kV or 132 kV) Shunt cap bank 25 - 50MVAr (110 kV or 132 kV) Table 7 High Voltage AC submarine cable
Plant

35 30 5.2 4.6 4.2 3.0 2.4 1.8

SVC with CB Capacitor bank with 1CB diameter 1 CB Capacitor bank with 1CB diameter 1 CB Capacitor bank with 1CB diameter 1 CB Capacitor bank with 1CB diameter 1 CB Capacitor bank with 1CB diameter 1 CB Capacitor bank with 1CB diameter 1 CB

Cost estimate ($M per km)

3 core 132 kV 189 MVA cable 3 core 220 kV 314 MVA cable

1.70 2.18

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100 PER CENT RENEWABLES STUDY ELECTRICITY TRANSMISSION COST ASSUMPTIONS

3.2 Costs for high voltage direct current (HVDC) facilities

Table 8 HVDC transmission lines
Plant Cost estimate ($M per km)

150kV 352 MW bipole submarine cable 300kV 704 MW bipole submarine cable 300kV 1306 MW bipole submarine cable 300kV 770 MW bipole on-shore cable 300kV 1253 MW bipole on-shore cable

1.57 1.64 3.12 1.49 2.18

Table 9 Converter stations

Converter station Cost estimate ($M)

200kV DC, 230/138kV AC, 400 MW with voltage source converter 170-300 Table 10 - Offshore platforms Offshore platform, water depth of 30-40m Platform for 500 MW HVDC with voltage source converter Platform for 1000 MW HVDC with voltage source converter Platform for 132/33 kV AC Platform for 220/33 kV AC

$150

Cost estimate ($M)

68 108 44 54

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100 PER CENT RENEWABLES STUDY ELECTRICITY TRANSMISSION COST ASSUMPTIONS

Disclaimer
Purpose - This document is provided by AEMO as at 18 September 2012 for general information purposes only. No Reliance or warranty - This document or the information in it may be subsequently updated or amended. While AEMO has made every effort to ensure the quality of the information in this document, AEMO does not warrant or represent that it is accurate, reliable, complete or current or that it is suitable for particular purposes. You should not rely on this document as a substitute for obtaining detailed advice about the National Electricity Law, the National Electricity Rules, or any other applicable laws, procedures or policies. Limitation of liability - To the maximum extent permitted by law, AEMO and its advisers, consultants and other contributors to this document (or their respective associated companies, businesses, partners, directors, officers or employees) are not liable (whether by reason of negligence or otherwise) for any errors, omissions, defects or misrepresentations in this document, or for any loss or damage suffered by persons who use or rely on the information in it.
2012 Australian Energy Market Operator Limited. The material in this publication may be used in 2 accordance with the copyright permissions on AEMOs website.

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