Australian Energy Regulator Approves ElectraNet's Heywood Interconnector Upgrade Project

---

Researched by Industrial Info Resources Australia (Perth, Australia)--ElectraNet Pty Limited (Adelaide, Australia) received financial approval from the Australian Energy Regulator (AER) for plans to upgrade the Heywood interconnector for South East (South Australia) and Heywood (Victoria). This represents the final regulatory approval required for the $107 million project.

The upgrade is designed to increase the capacity of the interconnector 40%, from 460 megawatts (MW) to 650 MW. This will help to resolve network congestion by addressing inter-state power transmission during peak hours, and to reduce the future energy costs for the residents through a net market benefit of approximately $190 million.

ElectraNet explored nine options with various permutations and combinations, or different scopes of work. The final option, called "option 1-b," was chosen and will involve the installation of a third 370-MVA, 500/275-kilovolt (kV) transformer at Heywood and a 500-kV bus tie, plus upgrading the existing 275-kV series compensation in South Australia and reconfiguring the 132-kV network between Snuggery-Keith and Keith-Tailem Bend (South Australia).

ElectraNet and the Australian Energy Market Operator (AEMO) jointly conducted the Heywood Interconnector Regulatory Investment Test for Transmission (RIT-T). Since this project involves the interconnector between South Australia and Victoria, the Australian Energy Market Operator (AEMO) has arranged to undertake complementary work on the Victorian end of the interconnector separately. The Victorian work is funded under different arrangements.

ElectraNet plans, owns, builds and operates the transmission network in South Australia and is the principal transmission network service provider (TNSP) in the state. The financial close on this project is expected by the fourth quarter of 2014. A company will be chosen as an engineering, procurement and construction (EPC) contractor to work on this project by the first quarter of 2015. ElectraNet hopes to begin construction in July 2015, and it should take approximately a year to complete.

View Plant Profile - 3119312
View Project Report - 300160601

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.