TransGrid and the changing energy market Deliberative forums with consumers – Sydney CBD, Wagga and Parramatta November 2013 This TransGrid event brought together a range of community members to provide feedback our five year business plan and revenue proposal. Some small changes have been made to the following presentation as details will continue to change as we take feedback from our consultation process. All details were correct at the time of publication, E&OE.
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TransGrid and the changing energy marketDeliberative forums with consumers – Sydney CBD, Wagga and Parramatta November 2013
This TransGrid event brought together a range of community members to provide feedback our five year business plan and revenue proposal.
Some small changes have been made to the following presentation as details will continue to change as we take feedback from our consultation process. All details were correct at the time of publication, E&OE.
2 November 2013 TransGrid Deliberative Forums
Overview of TransGrid
TransGrid promotional videoThis video is current unavailable
3 November 2013 TransGrid Deliberative Forums
Total residential
bill
The electricity supply chain
38%wholesale
plus carbon
8% 34% 13% retail7% green schemes
4 November 2013 TransGrid Deliberative Forums
Generating and transporting electricity
Generating capacity in the National Electricity Market 2013
The transmission network is like the freeways for
electricity
5 November 2013 TransGrid Deliberative Forums
TransGrid’s key statistics
12,609 kms high voltage
transmission lines
47 kms underground
cables
94 substations
63 generator connections
362 distributor and direct
customer connections
1,083 employees, with
more than 70% based
outside Sydney
6 November 2013 TransGrid Deliberative Forums
TransGrid’s revenue
TransGrid is a government-owned ‘natural monopoly’ . It is for-profit, to encourage efficiency.
Regulator sets revenue
NSW Government equity investor / shareholder in business
Revenue collected through electricity bills
80% of profits returned to owner (NSW Government)20% of profits reinvested in TransGrid
7 November 2013 TransGrid Deliberative Forums
What TransGrid does
Design, maintain and operate the network to: Keep the lights on Get the cheapest generation to market
8 November 2013 TransGrid Deliberative Forums
The market has changed
1951/52
70,000 GWh
2012/13
Total electricity demand in NSW
9 November 2013 TransGrid Deliberative Forums
Significant electricity price rises
1990 1994 1999 2004 2009 -
100
200
300
400 NSW residential electricity price
CPIInd
ex
mo
vem
ent
2013
10 November 2013 TransGrid Deliberative Forums
TransGrid’s new approach
Adaptive planning
Sydney CBD 2012/13 Summer demand management (like taking 50,000 air conditioners off the grid)
Effective engagement
‘Have your say’ website Public review of consultation
practices
Smarter regulation
A new way of thinking about the reliability / cost trade-off
11 November 2013 TransGrid Deliberative Forums
Engaging with stakeholders
Government and regulators
Industrial and commercial consumers
Distributors and other
transmitters
Residential consumers
Generators
Impacted communities
TransGrid’s 5-year plan, and broad engagement to understand needs and behaviour
Particular network needs
12 November 2013 TransGrid Deliberative Forums
The energy conversation
CostReliability
Draft five year plan
14 November 2013 TransGrid Deliberative Forums
Business plan overview
Typical annual electricity cost
TransGrid’s Draft Business Plan
$2,100
$168TransGrid part of bill
15 November 2013 TransGrid Deliberative Forums
Business plan overview
Breakdown of typical residential annual transmission charges
Tax & depreciation
Operating expense
Return on proposed capital investment
Return on capital already invested
TransGrid’s Draft Business Plan
Consult today on operating expense proposal
Consult today on new capital proposal
16 November 2013 TransGrid Deliberative Forums
How TransGrid’s prices compare
Prescribed revenue per energy transmitted (c/kWh nominal)
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
2016-17
2017-18
2018-19
0
1
2
3
c/k
Wh
no
min
al
Transend (Tas)
Powerlink (Qld)
TransGrid (NSW)
SP AusNet (Vic)
TransGrid’s Draft Business Plan
ElectraNet (SA)
Proposed capital investment(building the network)
18 November 2013 TransGrid Deliberative Forums
How much network do we need?
Capital – non build focus
19 November 2013 TransGrid Deliberative Forums
Replacement dominates proposedcapital investment
Others
Replacement
Augmentation
Market benefits
Updating infrastructure which is wearing out
New or upgraded infrastructure to cater for growing demand
New or upgraded infrastructure to expand generator access and competition
DescriptionCategory
Non network infrastructure, including commercial property and IT systems, and security compliance
Capital – Overview
Proposed capital investment for 2014 to 2019
20 November 2013 TransGrid Deliberative Forums
Peak demand has slowed and is less certain
Capital - Augmentation
21 November 2013 TransGrid Deliberative Forums
History of network development is driving replacement needs