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Network Extensions
Final Rev.2.1
16 November 2010
Feasibility Study Estimates for Transmission
Network Extensions
Final Rev.2.1
16 November 2010
The SKM logo trade mark is a registered trade mark of Sinclair Knight Merz Pty Ltd.
Feasibility Study Estimates for Transmission Network Extensions
Contents
1. Executive Summary 1
2. Introduction 2
3. Scope 3
4. Approach and assumptions 5
4.1. Approach 5
4.2. Assumptions 6
4.2.1. General assumptions 7
4.2.2. Cost estimating assumptions used by SKM 7
5. Detailed scope and options analysis 11
5.1. Greenfield Option 1.1 – 500kV AC double circuit line from Wilmington in South
Australia (SA) to Mt Piper in New South Wales (NSW) of 2000MVA capacity 11
5.2. Greenfield Option 1.2 - +/- 500kV DC bi-pole line Wilmington to Mt Piper of
2000MVA capacity 13
5.3. Greenfield Option 2– 500kV AC double circuit line from Krongart (SA) to
Heywood in Victoria (Vic) of 2000MVA capacity 17
5.4. Greenfield Option 3 - 500kV AC double circuit line from Tepko (SA) to Yass
(NSW) of 2000MVA capacity 19
5.5. Option 4 – 500kV AC Backbone in South Australia to NSW of 2000MVA
capacity 21
5.6. Option 5 – 500kV AC Backbone in South Australia to Victoria 23
5.7. Modelled Projects in Vic/NSW – 500kV AC double circuit line from Sydenham
(Vic) to Shepparton (Vic) of 2000MVA 25
5.8. Modelled Projects in Vic/NSW – 500kV AC double circuit line from Yass
(NSW) to Bannaby (NSW) of 2000MVA capacity 26
5.9. Supporting Modelled Project Vic to NSW – 330kV AC single circuit line from
South Morang (Vic) to Dederang (Vic) to Wagga (NSW) to Bannaby (NSW) of
1000MVA capacity 27
5.10. Supporting Modelled Project in SA - rebuild 275kV line to a double circuit line
Davenport (SA) to Brinkworth (SA) to Para (SA) of 1200MVA capacity 29
5.11. Supporting Modelled Projects in South Australia – 275kV AC double circuit
line from Krongart to Tepko of 1200MVA capacity 31
5.12. Augmentation Option 1 – Real time rate 132kV lines Robertstown (SA) to
Monash (SA) 33
5.13. Augmentation Option 2 – 1st stage – 3rd Heywood (Vic) 500/275kV
transformer and Capacitor Bank at South East substation (SA) 33
5.14. Augmentation Option 2 - 2nd Stage: Real Time Rate South East to Heywood
275 kV transmission lines 35
5.15. Augmentation Option 2 – 3rd stage – install series compensation for the
Tailem Bend (SA) to South East 275kV line (SA) 35
6. Conclusions 37
7. Appendix A 39
SINCLAIR KNIGHT MERZ
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Feasibility Study Estimates for Transmission Network Extensions
Distribution of copies
Revision Copy no Quantity Issued to
Draft version 2 1 electronic Client, 16 April 2010
Final Rev0 1 electronic Client, 30 April 2010
Final Rev1 1 electronic Client, 21 May 2010
Final Rev2 1 electronic Client, 08 June 2010
Final Rev2.1 1 electronic Client, 16 November 2010
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1. Executive Summary
ElectraNet and the Australian Energy Market Operator (AEMO) are undertaking a joint feasibility study
of transmission development options that will increase the transfer capability between South Australia
and the other National Electricity Market (NEM) load centres.
This report provides high level cost estimates with an order of accuracy of +/-30% for a suite of
transmission options provided by ElectraNet in conjunction with AEMO.
Preliminary assessments were made of fifteen (15) options ranging from small augmentations such as
real time rating of various 275kV lines in South Australia to long distance bulk transport of power using
500kV HVDC technology. A number of long distance 500kV AC transmission options with multiple
takeoff points and/or switching stations in Victoria and New South Wales have also been assessed.
The method to develop cost estimates was to assemble building block costs for major items and then
apply them to the various options.
The cost estimates are shown in further detail in Appendix A, Table A2 while the essential technical
details for each option are summarised in Table A3.
In any first pass desktop assessment of costs, a number of assumptions need to be made and these
have been set out in the report. The assessment of technical merits, constructability and potential
environmental issues were not part of the scope of this study and therefore comments have been
restricted to the actual cost estimates and the basis on which they were developed.
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2. Introduction
South Australia’s Transmission Network Service Provider, ElectraNet, and AEMO are undertaking a
joint feasibility study of transmission development options that will increase the transfer capability
between South Australia and the other NEM load centres. The purpose of the feasibility study is to
investigate and assess the economic merit of transmission development options.
A number of options to enhance transmission capability exist, ranging from tens of megawatts to
thousands of megawatts. There are also renewable resource locations elsewhere in the NEM which
need to be taken into account. The economic level of transmission capability enhancement must take
into consideration relative costs and benefits of developments in South Australia. This includes
transmission costs, for comparison with development options relating to all of the identified potential
network and resource locations.
SKM was engaged by AEMO to provide cost estimates for a range of augmentation options, which
have been developed by AEMO and ElectraNet. These options include a number of “incremental”
augmentations and three large greenfield augmentations. Each of these comprise several projects
contained within an area spanning the southern portion of the National Electricity Grid.
In the preparation of this report, SKM made use of benchmarking and asset valuation data, together
with various public domain sources of information such as published papers, presentations and
previous studies by other consultants.
SKM is aware of recent similar studies carried out for AEMO by Power Systems Consultants Pty Ltd
(PSC) in relation to network extensions to remote areas. These studies also considered long distance
500kV AC and DC lines and therefore where relevant, and/or where SKM supports the findings of
PSC, reference will be made to these previous studies.
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3. Scope
A total of thirteen (13) options were provided by ElectraNet for estimating. They are summarised as
follows;
1) Greenfield Option 1.1 – 500kV AC double circuit line from Wilmington in South Australia (SA)
to Mt Piper in New South Wales (NSW) of 2000MVA capacity
2) Greenfield Option 1.2 - +/- 500kV DC bi-pole line Wilmington to Mt Piper of 2000MVA
capacity
3) Greenfield Option 2– 500kV AC double circuit line from Krongart (SA) to Heywood in Victoria
(Vic) of 2000MVA capacity
4) Greenfield Option 3 - 500kV AC double circuit line from Tepko (SA) to Yass (NSW) of
2000MVA capacity
5) Modelled Projects in Vic/NSW – 500kV AC double circuit line from Sydenham (Vic) to
Shepparton (Vic) of 2000MVA
6) Modelled Projects in Vic/NSW – 500kV AC double circuit line from Yass (NSW) to Bannaby
(NSW) of 2000MVA capacity
7) Supporting Modelled Project Vic to NSW – 330kV AC single circuit line from South Morang
(Vic) to Dederang (Vic) to Wagga (NSW) to Bannaby (NSW) of 1000MVA capacity
8) Supporting Modelled Project in SA - rebuild 275kV line to a double circuit line from
Davenport (SA) to Brinkworth (SA) to Para (SA) of 1200MVA capacity
9) Supporting Modelled Projects in SA –275kV AC double circuit line from Krongart (SA) to
Tepko (SA) of 1200MVA capacity
10) Augmentation Option 1 – Real time rating of 132kV lines Robertstown (SA) to Monash (SA)
rd
11) Augmentation Option 2 – 1st stage – 3 Heywood (Vic) 500/275kV transformer and
Capacitor Bank at South East substation (SA)
12) Augmentation Option 2 – 2nd stage - Real time rating of South East (SA) to Heywood (Vic)
275kV line
13) Augmentation Option 2 – 3rd stage – install 50% series compensation Tailem Bend (SA) to
South East (SA) 275kV line
A further two options were subsequently added to allow cost sensitivities to be considered for
alternatives to reinforcing South Australia’s 275kV network. Two alternatives were considered
involving establishment of a 500kV backbone from Krongart to Wilmington connected to either the
NSW or the Victorian network. These are Options 4 and 5.
The above geographic locations refer to either existing network locations or proposed/assumed new
locations across South East Australia in the States of South Australia, Victoria and New South Wales
as shown in Figure 1.
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1
Figure 1 - South East Australian transmission networks
1
Source of map: AEMO
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4. Approach and assumptions
4.1. Approach
A building block approach has been taken in developing the estimates for the various options. These
building block estimates have been built up over time by making use of data from previous asset
valuations carried out by SKM, benchmarking studies, and recent specific studies relating to large
transmission augmentations such as HVDC transmission links. In addition some reference is made to
cost estimates presented by other consultants. Specifically, SKM is aware that PSC, have recently
2
carried out similar studies for AEMO for transmission network remote connections.
While the cost estimates given in this report are of the order of +/-30% accuracy at 2010/2011 cost
level, it should be noted that as a result of significant price volatility in materials and labour applying to
new transmission plant in the last five years, it is not possible to guarantee the above order of
accuracy for all estimate components that make up the building block prices. Thus in the absence of
firm current data for the largest or more specialised transformers, estimates have been based on
average prices from a range of historical building block prices.
To put the cost estimating for this study into context, SKM suggests that there are four main stages
that engineering estimates go through before funding approval can be obtained. Figure 2 shows these
stages and the type of information required to produce appropriate cost estimates. With reference to
Figure 2, SKM suggests this study is at the pre-feasibility stage – that is the “first pass” or order of
magnitude estimates.
2
Ranil de Silva and Andrew Robbie, Power Systems Consultants Australia Pty Ltd - Network extensions to remote areas -
Planning Considerations (Part 1), and Innamincka case study (Part 2), November 2009.
SINCLAIR KNIGHT MERZ
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This study
30
25
% Probable Accuracy
of Estimate
20
15
10
Comparison/
Use of Study Rejection Final Feasibility Budget Funding
As the brief was essentially to provide high level cost estimates for a suite of transmission options
provided by ElectraNet in conjunction with AEMO, most of the comments are about the estimating
process and assumptions made. However some technical comments have been included. It should be
noted that these comments, where included, are simply based on SKM observations and as such are
provided for information only. The absence of technical comments for any particular option does not
imply that SKM is in agreement with the scope. In order to accurately define the scope, extensive
system studies need to be undertaken as part of a detailed technical review before forming any
conclusions.
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4.1.1. General assumptions
Due to the nature of this analysis, a number of upfront general assumptions were provided by the
client in order to seek to minimise the number of possible technical solutions. These assumptions are
as follows:
All new substations and switching stations constructed to breaker and half layouts
All new substations require duplicated communication paths
All options require new dual path high speed communications links to be established
All new substations / switching stations to be AIS
Additions to existing substations to be as per the existing arrangements at those substations
Staged interconnection lines to 2000MVA (except 330 kV) main interconnection substations to
cater for 1000 MVA in the first stage unless otherwise noted
Twin Sulphur conductors to be used for 275kV lines
Twin Olive conductors to be used for 330kV lines
Quad Orange (or AAAC equivalent) conductors to be used for 500kV lines
In the development of the estimates, the following additional assumptions have been made:
Transmission Lines
SKM building block estimates are based on a set of typical average conditions addressing wind
loading, span lengths, terrain, structure types, ratio of tension towers to suspension towers,
conductor design temperature, minimum ground clearance and conductor tension. As this is a
pre-feasibility study in line with Figure 2, it is not considered necessary to specify the above
conditions. However where more detailed studies need to be carried out, these parameters can
be tailored to specific applications if necessary.
There are many factors which impact on the design and hence cost of transmission lines and the
3
selection of routes. These factors have already been summarised by PSC and will not be
reiterated here.
Transmission line costs over the last 5-6 years have escalated significantly for a variety of
reasons not least of which had been the demand for commodities such as copper, aluminium and
steel and the escalating cost of labour in manufacturing and construction as experienced in the
electricity industry.
3
Part 1 Section 3, Ranil de Silva and Andrew Robbie, Power Systems Consultants Australia Pty Ltd - Network extensions to
remote areas - Planning Considerations (Part 1), and Innamincka case study (Part 2), November 2009.
SINCLAIR KNIGHT MERZ
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Historical building block prices for transmission line construction that apply to Australian
conditions, are now proving to be less reliable. This is because of the rapidly escalating costs as
discussed above and because there has been limited exposure to the market of certain voltage
classes of alternating current EHV lines. For example there has been limited construction of
500kV AC transmission lines in Australia in recent years. As a result of the above considerations,
an alternate source of more up-to-date 500kV line construction rates has been found in recent
4
publically available network owner consultation reports . The rate per kilometre used from these
sources is considered very conservative.
Easement acquisition
Easement costs in this report are indicative costs only. In SKM’s view, it is not possible to give
+/- 30% estimates at a pre-feasibility stage on the information available. Easement costs can vary
greatly depending on factors such as actual route, prudent avoidance to manage electric and
magnetic field strengths at easement boundaries, relevant jurisdictional requirements,
environmental constraints, cultural heritage issues, land tenure and specific Transmission
Network Service Provider (TNSP) policies. SKM supports PSC’s range of likely costs used in their
5 6
study and therefore in the absence of a more detailed assessment, the underlying assumptions
used by PSC have been applied to this study. A further comparison was made with information
obtained from ElectraNet which reinforced the above basis of costs.
It has been assumed that line and substation environmental impact assessments are conducted
jointly.
Substations
It is recognised that significant substation expansions may not always be possible without major
switchyard rebuilding and therefore substantial additional costs may result. No allowance has
been made for additional costs associated with rebuilding a substation on an adjacent site or
major relocation of line entries. No allowance has been made for upgrading primary plant or
secondary systems on the existing network because of the very detailed nature of such
investigations which is outside the scope of this study. Nevertheless it should be noted that these
costs can be significant if major upgrading is required.
4
Powerlink Qld Final Report June 2009 – Maintaining a reliable electricity supply to Southern Queensland, and, Final report –
augmenting the transmission network in South East Queensland 25 July 2008
5
Ibid; Table 2A – Part 2
6
Ibid; page 12
SINCLAIR KNIGHT MERZ
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Addressing fault level issues can also add substantial costs to any augmentation. No allowance
has been made to replace any existing switchgear or line components on account of higher fault
levels that will most likely occur with the type of major augmentations being discussed in this
report. Similarly, it has been assumed that existing plant can be re-used.
No special allowance has been made for additional costs associated with the use of three phase
sets of single phase transformers which may apply for ratings over 400MVA.
In relation to reactive support, where specifically included in the scope, estimates reflect these
costs. However it is recognised that not all reactive support has necessarily been scoped due to
the absence of detailed system studies. The cost of all switched line reactors are included with the
line costs, while shunt capacitors are included in the substation costs.
Series Compensators
Due to the nature of this study, it was not possible to carry out detailed research into the latest
costs of series compensators particularly as they are highly specialised and Australia has only
limited recent experience with this type of plant. SKM has therefore based the cost estimates on
7
the estimates given by PSC. Further, in SKM’s view, the technology now on offer such as flexible
AC transmission systems (FACTS) should be given consideration in addition to classic fixed
compensation solutions.
Weather stations
The establishment of weather stations for the purposes of dynamic line rating, has not in the past
been commonly viewed in terms of transmission network building block costs. Therefore specific
cost estimates have been sourced from bottom up estimates carried out recently by SKM. While
ElectraNet has offered an estimated cost of such, SKM has used the alternate SKM estimate
which is slightly higher. In any event, these cost differences are not considered significant.
HVDC technology, like other power electronics based systems is highly specialised and constantly
evolving. Only the classic HVDC technology has been considered in this study. Cost estimates
have been derived from recent studies conducted by SKM. Comparisons have also been made
8
with estimates published in other recent papers such as PSC’s Innamincka Case Study , ABB’s
9
2007 estimates for 3000MW +/-500kV bipole installations in the U.S.A., and Andersen Power
7
Ibid; Part 2 Table 2A
8
Ranil de Silva and Andrew Robbie, Power Systems Consultants Australia Pty Ltd - Network extensions to remote areas -
Planning Considerations (Part 1), and Innamincka case study (Part 2), November 2009; Part 2 – Table 2B
9
M.P. Bahraman and B.K. Johnson, The ABCs of HVDC transmission technology – IEEE Power & Energy Magazine
March/April 2007 Vol.5 No.2
SINCLAIR KNIGHT MERZ
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10
Electronic Solutions estimates of December 2005 for augmenting New Zealand’s transmission
network. The ABB estimates are discussed in Section 5.2.
10
Dr B. R. Andersen of Andersen Power Electronic Solutions Ltd – Costing of Power Electronic Equipment for Alternative
Transmission Augmentation into Auckland
SINCLAIR KNIGHT MERZ
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5. Detailed scope and options analysis
5.1. Greenfield Option 1.1 – 500kV AC double circuit line from Wilmington in South
Australia (SA) to Mt Piper in New South Wales (NSW) of 2000MVA capacity
Construct a 500 kV AC double circuit line from Wilmington to Mount Piper (1150 km)
Build a new 275/500 kV substation at Wilmington with 3 x 1000MVA 275/500 kV transformers;
turn in 4 x 275 kV lines into the substation
Extend the Mount Piper 500 kV substation
Install of 2 x 1000 MVA 500 kV phase shift transformers (voltage and angle control) at Mt
Piper – indicative rating only
Create two intermediate support switching stations using breaker and half configuration at
Broken Hill and Hillston respectively.
Include 200MVAr line connected shunt reactors at both ends of each line section
Add 50% series compensation progressively on each line section for transfers above
1000MW
Install a 500kV +400,-100 MVAr Static VAR compensator (SVC) on the bus at Wilmington and
Mt Piper
In view of comments made in Section 4, because of the nature of this study, the difference in
estimated cost between a phase shifting transformer and a regular transformer is not considered
significant in the overall cost estimate for this option, and therefore common transformer building block
prices have been used.
In this option SKM has assumed a switching station near Hillston, a small settlement in central western
NSW roughly halfway between Broken Hill and Mt Piper. This should be considered as a nominal
location only.
It has been assumed that the staged series compensation per line section would yield around
330MVA of increased transfer for each stage.
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Figure 3 below shows the basis for this estimate:
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5.2. Greenfield Option 1.2 - ± 500kV DC bi-pole line Wilmington to Mt Piper of
2000MVA capacity
Stage 1
Construct a HVDC line from Wilmington to Mount Piper (1150 km) with both poles strung
Establish converters at the two ends for monopole operation at half of the 2000MVA ultimate
capacity
Establish a 275kV switchyard at Wilmington and turn in 4 x 275 kV circuits into the substation
Establish a HVDC switchyard at Wilmington
Extend the Mount Piper substation and create a 500 kV converter transformer substation and
a HVDC terminal
Install of a +400/-100 MVAr SVC on the 500kV bus at Mt Piper
Install of a +400/-100 MVAr SVC on the 275kV bus at Wilmington
Stage 2
Add converters at the two ends to convert the monopole into a bi-pole and obtain 2000MVA
capacity
Substation T/Line Easements Total
Description ($ '000) ($ '000) ($ '000) ($ '000)
Option 1.2 Stage 1 - 500kV DC 1000MVA 620,131 1,823,900 46,000 2,490,031
Option 1.2 Stage 2 - 500kV DC Add 1000MVA 492,887 0 0 492,887
Option 1.2 Total - 500kV DC 2000MVA 1,113,018 1,823,900 46,000 2,982,918
Figures 4 and 5 below show the basis for Stages 1 & 2 estimate respectively:
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Davenport WILMINGTON
275kV
Converter
DC
AC AC
converter
+400 -100 arrangement f or
MVAr SVC
Canowie/ 1000MVA
Mokota f ilter monopole
1100km line
Quad Sulphur conductor - both poles strung
+/- 500kV DC
MT PIPER
Converter
500kV
f ilter
+400-
100
MVAr
SVC
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WILMINGTON
Davenport
275kV
Converters
DC
AC AC
converter
Canowie/
+400-100 filter arrangement f or
MVAr SVC Mokota filter 2000MVA
bipole
1100km line
+/- 500kV DC
MT PIPER
500kV
f ilter
f ilter
SVC
this option
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For the purposes of this study, quad sulphur conductor has been assumed in order to keep line losses
below 10% of maximum transfer capacity
Following a specific client request, the relative costs of +/-600kV and +/-800kV have been considered
briefly – see below
In relation to the sensitivity of costs to changing voltages and transmission technology, the graph
below (Figure 6) illustrates a view by a major supplier of DC systems. The data is taken from a North
11
American 2007 ABB technical paper further details of which are given in Table A1 of Appendix A.
$3,000
$2,500
millions of USD
$2,000
$1,500
$1,000
$500
$0
+/- 500kV Bipole +/- 600kV Bipole +/- 800kV Bipole 500kV AC Double
Circuit
TYPE OF TRANSMISSION
In comparing the above ABB cost estimates of a 3000MW capacity link with the estimates in this
report for a 2000MW link, the following observations have been made:
There appears to be a linear relationship between expected costs and the chosen voltage of the
DC system.
11
M.P. Bahraman and B.K. Johnson, The ABCs of HVDC transmission technology – IEEE Power & Energy Magazine
March/April 2007 Vol.5 No.2
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From the above graph, the AC option has been shown to be around 80% higher than the DC
option. However in this report the SKM estimated AC option is only 27% higher than the DC
option. In seeking to explain the possible reasons for such a difference, it has been found that
while there is good correlation between the ratio of AC to DC line costs there is a substantial
difference in the ratio of AC substation costs to DC terminal costs.
SKM estimates for the DC converter station costs are substantially higher than those shown in
Table A1 of Appendix A even taking into account the differences in ratings. A possible explanation
is that converter station budget prices are very much market driven. In this case ABB is a major
supplier of converter equipment into the North American market which is quite different to the
Australian market. This reinforces the SKM view that the price of specialised large capital items is
difficult to predict as competitiveness and market conditions tend to play a significant role in the
final price determination.
5.3. Greenfield Option 2 - 500kV AC double circuit line from Krongart (SA) to
Heywood in Victoria (Vic) of 2000MVA capacity
Construct a 500 kV AC double circuit line from Krongart to Heywood (125 km)
Build a new AC 275/500 kV substation at Krongart with 3 x 1000MVA 275/500 kV
transformers
Turn in 2 x 275 kV lines (Tailem bend to South East) into the new substation
Extend the substation at Heywood with two breaker and half bays and connect the 2 x 500 kV
circuits
Add a +400/-100 MVAr SVC to the 500kV bus at Heywood
Presently the Heywood substation contains minimum switchgear, that is, single breakers as opposed
to breaker and a half. It is understood that this substation is arranged such that development to a
breaker and half configuration may be possible. It is recommended that nothing less than a full breaker
and half switching configuration is warranted for this option.
Reference should also be made to the incremental augmentation option involving the connection of a
third 500/275kV transformer. Breaker and a half configuration is also assumed – See Figure 16.
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Figure 7 – Option 2 – 500kV AC Krongart to Heywood
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5.4. Greenfield Option 3 - 500kV AC double circuit line from Tepko (SA) to Yass
(NSW) of 2000MVA capacity
Construct a 500 kV AC double circuit line from Tepko to Yass routed via Horsham and
Shepparton
Construct a 500 kV AC double circuit line from Tepko to Yass (1050 km)
Build a new AC 275/500 kV substation at Tepko with 3 x 1000MVA 275/500 kV transformers;
turn in 4 x 275 kV lines (Tailem bend to Tungkillo) into the substation
Extend the switchyard at Yass and connect the 2 x 500 kV circuits with three 500/330 kV
1000MVA transformers
Create two intermediate support switching stations at Horsham and Shepparton respectively,
with a breaker-and-half configuration
Install 200MVAr line connected shunt reactors at both ends of each line section.
Install 50% series compensation progressively in each line section for transfers above
1000MW
Include a 500kV +400/-100 MVAr SVC at Tepko and Yass substations
In view of comments made in Section 4.1.2, because of price volatility and the nature of this study, the
difference in estimated cost between a phase shifting transformer and a regular transformer is not
considered significant in the overall cost estimate for this option, and therefore common transformer
building block prices have been used.
This option supports the Sydenham – Shepparton modelled project as described in section 5.7.
It has been assumed that the staged series compensation per line section would yield around
330MVA of increased transfer capacity.
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Tungkillo TEPKO
500kV
275kV
+400-
100
MVAr
costed separately
* *
1000MVA
transformers
SHEPPARTON HORSHAM
450 Km
500kV 500kV
*
* *
*
= series compensation staged for each section for transfers above 1000MW
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5.5. Option 4 – 500kV AC Backbone from South Australia to NSW of 2000MVA
capacity
Construct a 300km double circuit 500kV line from Wilmington to Tepko and a 340km double
circuit line from Tepko to Krongart
Establish a 275/500kV substation at Tepko and switch the Tungkillo, Tailem Bend and Cherry
Gardens 275kV lines. Separate out the cost of this substation to allow it to be excluded
during further analysis if required.
Establish a 275/500kV substation at Krongart and switch the Tailem Bend and South East
275kV lines
Include +400/-100 MVAr SVC’s at each of the South Australian 500kV substations
The 500kV works separately costed in Option 1.1 may be added to the cost of this option to obtain a
total cost of a 500kV network in SA connected to the 500kV network at Mt Piper. Note that a third
transformer at Wilmington is not required in this option.
Options 4 and 5 have resulted from a specific client request to compare the cost of 275kV network
reinforcements with the alternate 500kV reinforcement as shown in Figures 7 and 8. Costs have also
been broken up to allow additional variations to be considered as required.
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Figure 9 – Option 4 – 500kV AC Backbone from South Australia to NSW
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5.6. Option 5 – 500kV AC Backbone in South Australia to Victoria
As an adjunct to Option 2,
The part of the works separately costed in Option 2 may be added to the cost of this option to obtain a
total cost of a 500kV network in SA connected to the 500kV network in Victoria.
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Figure 10 – Option 5 – 500kV AC Backbone from South Australia to Victoria
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5.7. Modelled Projects in Vic/NSW – 500kV AC double circuit line from Sydenham
(Vic) to Shepparton (Vic) of 2000MVA
Construct a 500 kV AC double circuit line from Sydenham to Shepparton (170 km)
This estimate assumes the establishment of a new 500kV switchyard at Shepparton under Option 3.
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5.8. Modelled Projects in Vic/NSW – 500kV AC double circuit line from Yass (NSW)
to Bannaby (NSW) of 2000MVA capacity
Construct a 500 kV AC double circuit line from Yass to Bannaby (120 km)
This estimate assumes Yass 500kV substation has been established (see Option 3).
It is assumed that the existing 4 breaker mesh at Bannaby can be reconfigured into a full breaker and
a half arrangement as shown and that all existing breakers can be re-used.
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5.9. Supporting Modelled Project Vic to NSW – 330kV AC Single Circuit Line from
South Morang (Vic) to Dederang (Vic) to Wagga (NSW) to Bannaby (NSW) of
1000MVA Capacity
Construct a 500km 330 kV AC single circuit line with twin Mango conductor , from South
Morang – Dederang – Jindera – Wagga – Barnaby (all 330kV Substations)
Install of 50% series compensation on the South Morang to Dederang line
Extend switchyards at South Morang, Dederang, Jindera, Wagga (all 330kV Substations)
Substation T/Line Easements Total
Description ($ '000) ($ '000) ($ '000) ($ '000)
Supporting Model 3 - 330kV South Morang to Bannaby 32,186 426,240 25,600 484,026
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Figure 13 – Modelled Project #3 – 330kV AC South Morang to Bannaby
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5.10. Supporting Modelled Project in SA - rebuild 275kV line to a double circuit line
Davenport (SA) to Brinkworth (SA) to Para (SA) of 1200MVA capacity
No allowance has been made for the removal of the existing single circuit 275kV line as this cost is not
considered significant in the context of this study. However it should be taken into account for inclusion
in more detailed assessments as costs can escalate depending on the conditions imposed on the
asset owner.
It is possible that easements will need to be revised for the two new double circuit lines if a new
environmental impact assessment (EIA) or review of environmental factors (REF) is required. It is
possible that such reviews will result in minor route changes.
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Figure 14 – Modelled Project #4 – 275kV AC Davenport to Para
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5.11. Supporting Modelled Projects in South Australia – 275kV AC double circuit
line from Krongart to Tepko of 1200MVA capacity
Construct a new Krongart to Tepko 275 kV AC double circuit line using twin sulphur
conductors (340 km)
Add 2 x 275kV breakers at Krongart and at Tepko for each feeder
Options 2 and 3 refer to the establishment of Krongart and Tepko respectively. It is understood that
both of these substations would not co-exist prior to the new 275kV line. With reference to Figure 14,
SKM has assumed that Krongart simply requires extension to accommodate the new 275kV line while
Tepko is to be established for the existing Tailem Bend to Tungkillo lines to be switched and the new
line to be terminated. If the reverse order of constructing these substations is considered, then the
estimate should be similar, as the scope of work is essentially the same apart from site specific issues.
It is possible that some rationalisation of switching at Tepko or Krongart could be made saving up to
two breakers. No allowance has been made for this.
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Figure 15 – Modelled Project #5 – 275kV AC Tepko to Krongart
SINCLAIR KNIGHT MERZ
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5.12. Augmentation Option 1 – Real time rate 132kV lines Robertstown (SA) to
Monash (SA)
Install an additional 30MVAr 132kV Capacitor bank at Monash Substation (in addition to the
reactive support in ElectraNet’s Annual Planning Report)
Substation T/Line Easements Total
Description ($ '000) ($ '000) ($ '000) ($ '000)
Augmentation Option 1 - Install Weather Stations & 132kV Cap Bank 2,114 0 0 2,114
Only the 132kV capacitor bank has been estimated for this option. There is no diagram associated
with this Option.
5.13. Augmentation Option 2 – 1st stage – 3rd Heywood (Vic) 500/275kV transformer
and Capacitor Bank at South East substation (SA)
The existing Heywood substation has a non-conventional switching arrangement for both the 500kV
and 275kV switchyards and the original scope sought to simply extend the existing facility. However
subsequent discussions with the client resulted in an agreement to estimate on the basis of conversion
to a full breaker and a half configuration. SKM is of the view that this is a more appropriate course of
action.
No allowance has been made for any additional property which may be required in the redevelopment
of the switchyards.
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rd
Figure 16 – Augmentation Option 2 Stage 1 – 3 Transformer at Heywood and Capacitor Bank
at South East & Heywood
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5.14. Augmentation Option 2 - 2nd Stage: Real Time Rate South East to Heywood
275 kV transmission lines
Note only the weather stations have been estimated for this option.
5.15. Augmentation Option 2 – 3rd stage – Install series compensation for the
Tailem Bend (SA) to South East 275kV line (SA)
Install 50% series compensation on the 275kV double circuit transmission line between
Tailem Bend and South East Substations
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Figure 17 – Augmentation Option 2 Stage 3 – Series Compensation Between Tailem Bend &
South East
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6. Conclusions
In this pre-feasibility study, the focus has been on high level cost estimating of a number of large
network augmentations and a number of incremental augmentations. Based on the brief, the time
allotted for the study and the information available at the time, SKM suggests that this study falls into
the category of a pre-feasibility study.
This study found that the estimated cost of the high capacity long distance network options ranged
from $2,982M to $3,750M while the low capacity augmentation options ranged from $2M to $28M.
Supporting options ranged from $252M to $528M. Appendix A Table A2 sets out a summary of costs
for each option while Appendix A Table A3 summarises the key technical parameters assumed in this
study.
In comparing the high capacity 500kV AC and DC options, this study found that the HVAC option is
somewhat more expensive than the HVDC option for a similar power transfer capacity and distance.
The magnitude of the cost difference is highly dependent on the cost of converter stations and line
costs.
All of the cost estimates for options that involve long transmission lines, are very sensitive to the per
km cost of those lines and because of this it is recommended that more detailed analysis into line
costs should be undertaken due to the volatility of construction costs in the last 5-6 years. In addition
environmental issues are having a continuing impact on the type of lines that the community will
accept and the route options. All of these impacts almost certainly drive line and easement costs
upwards.
SKM found that the cost estimates used for converter stations are in the same range as PSC’s
12
estimates but somewhat different to the ABB estimates shown in Table A1 of Appendix A. Because
of the difficulty in arriving at a reliable estimate for this type of equipment as discussed in this report, it
is strongly recommended that further study of prices, preferably with input from manufacturers and
overseas utility experience, should be undertaken if advancing from the pre-feasibility stage.
In relation to the sensitivity of costs in comparing 275kV reinforcement options in South Australia with
alternative 500kV options, a breakup of costs for major 500kV network components has been provided
to allow comparisons to be made depending on the extent to which reinforcements are to be further
analysed.
Like a number of similar previous studies, SKM has used indicative costs for series compensators. In
order to obtain a better understanding of the expected price range of these and allied devices, SKM
suggests that further research needs to be undertaken with input from major suppliers of this type of
equipment as discussed above. Even then, pricing is normally a commercially sensitive area and it is
often the case that suppliers will give a range of budget prices which may or may not reflect actual
12
Ranil de Silva and Andrew Robbie, Power Systems Consultants Australia Pty Ltd - Network extensions to remote areas -
Planning Considerations (Part 1), and Innamincka case study (Part 2), November 2009; Part 2 report – Table 2B
SINCLAIR KNIGHT MERZ
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tender prices. Secondly, this technology is constantly evolving and a greater range of design options is
now available. Flexible AC transmission Systems (FACTS) and similar devices, present to the
transmission system developer a greater range of solutions than was generally available 10 years ago.
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7. Appendix A
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