Major programs

Victoria to New South Wales interconnector upgrade regulatory investment test for transmission

Strategic planning of our power system is crucial to making smart, informed decisions in the long-term interests of Australian energy consumers. AEMO and TransGrid are jointly undertaking the Victoria to New South Wales interconnector Upgrade Regulatory Investment Test for Transmission (RIT-T) to assess the technical and economic viability of alleviating power transfer capacity limitations between Victoria and New South Wales.

Regulatory Investment Test for Transmission

The RIT-T process is a regulatory mechanism that applies an economic cost-benefit test on new transmission electricity infrastructure proposed for the NEM. It is designed to identify the most economically efficient infrastructure investment option, so the investment meets the long-term needs of consumers.

The RIT-T process requires transmission network planners considering significant investment in new transmission infrastructure to publish three reports:

  1. The Project Specification Consultation Report (PSCR) seeks feedback and advice on the identified need for new transmission infrastructure.
  2. The Project Assessment Draft Report (PADR) identifies and seeks feedback on the preferred investment option.
  3. The Project Assessment Conclusions Report (PACR) presents the transmission planner’s recommended solution to deliver the highest net economic benefit and intended course of action.

Project Assessment Conclusions Report (PACR)

On 14 February 2020, AEMO and TransGrid jointly released the Project Assessment Conclusions Report (PACR) for the Victoria to New South Wales Interconnector (VNI) which marks the third and final report in this RIT-T process. 

The report confirms the preferred investment option proposed in the VNI RIT-T Project Assessment Draft Report (PADR) published in August 2019. 

The preferred option will increase export capability from Victoria to New South Wales by approximately 170 MW during peak demand conditions in New South Wales. This option yields the highest net market benefits of all options assessed through the RIT-T process primarily through more efficient sharing of generation resources between the states.
Please see below additional supporting documentation to the PACR:

Project Assessment Draft Report (PADR)

On 30 August 2019, AEMO and TransGrid jointly released the Project Assessment Draft Report (PADR) (1.84 MB, pdf), which represents step two of the public consultation process for this RIT-T.

The PADR assesses and identifies the draft preferred transmission investment option which delivers the greatest net market benefits. The PADR also provides a summary of submission received on the Project Specification Consultation Report (PSCR).

To inform the next phase of the RIT-T process, AEMO and TransGrid invite written submissions on this PADR, including comments on the inputs, analysis and choice of preferred option. Submissions are due on or before 11 October 2019 via planning@aemo.com.au.

Please see below additional supporting documentation to the PADR:

AEMO and TransGrid called for written submissions from interested parties, including comments on the inputs, analysis and choice of preferred option. The submissions closed on 11 October 2019.

Please see below for the non-confidential submissions received for the PADR:

No confidential submissions were received for the PADR.

Project Specification Consultation Report (PSCR) 

On 15 November 2018, AEMO and TransGrid completed the first stage of the Victoria to New South Wales Interconnector Upgrade RIT-T and published for consultation a Project Specification Consultation Report (PSCR) (403 KB, pdf) identifying the need to alleviate current and projected limitations on power transfer capacity from Victoria to New South Wales, which are resulting in market costs through less efficient sharing of generation resources between states.

AEMO and TransGrid called for written submissions from interested parties in relation to the credible network and non-network options presented, and other issues addressed in the report.

Please see below non-confidential submissions received for the PSCR.

One confidential submission was also received.

Stakeholder engagement

AEMO is committed to working with industry, government, investors and consumers to secure and shape Australia’s energy future in the long-term interests of consumers.

We value your feedback and advice on this RIT-T, and are committed to ongoing dialogue with our stakeholders.

We will continue to provide updates as we move through this program and welcome your thoughts via our stakeholder engagement activities which will be announced on this page in the coming months. For more information, please contact planning@aemo.com.au

Industry forums

 

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