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Transend - Appendix 5 Renewal capital expenditure - Australian ...

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4.3 RISK EVALUATION<br />

0BInvestment Evaluation Summary<br />

TNM-GS-809-0720<br />

<strong>Transend</strong> has developed a comprehensive methodology for determining the criticality of transmission circuits 1 . Both 220 kV<br />

Transmission Line circuits at Farrell Substation are categorised as criticality ‘5’ (with 5 being the highest criticality)<br />

primarily because of their importance to the transmission network in sustaining a reliable and secure electricity supply to<br />

customers.<br />

4.4 CAPITAL/OPERATING EXPENDITURE TRADE-OFFS<br />

Replacement of the 220 kV Transmission Line protection schemes with modern relays will reduce the frequency of<br />

preventive and corrective maintenance and hence operating <strong>expenditure</strong>.<br />

<strong>Transend</strong> estimates that the implementation of this project will result in savings of operating <strong>expenditure</strong> of up to $176,472<br />

(in $2009) over the forthcoming regulatory control period.<br />

These savings have been incorporated into the economic analysis (document D09/2677).<br />

4.5 COMPLIANCE<br />

As a requirement for entry into the National Electricity Market (NEM), <strong>Transend</strong> was required to undertake a compliance<br />

audit of its 220 kV transmission line protection schemes. The compliance audit 2 identified that the Sheffield–Farrell 220 kV<br />

Transmission line protection schemes are compliant with the NEC. The circuits were compliant to clauses S5.1a.8(b to e),<br />

S5.1.9(d) and S5.1.9(f) of the NER.<br />

As described in Section 3.2, <strong>Transend</strong> field staff report that the THR relays have a consistent history of failing under routine<br />

testing conditions. These occurrences threaten <strong>Transend</strong>’s compliance obligation to ensure planned maintenance is performed<br />

in a period not greater than eight hours (NER S5.1.2.1(d) – refer to Table 2 below). It is increasingly likely that the degrading<br />

condition of these schemes will result in <strong>Transend</strong>’s non-conformance with this obligation which would result in the affected<br />

transmission line being forcibly removed from service by NEMMCO until the protection scheme is repaired.<br />

It is also highly likely that the increasingly unreliability of these protection schemes will result in the schemes failing in a<br />

manner that will result in the equipment requiring emergency replacement. When this event occurs <strong>Transend</strong> will not be able<br />

to ensure compliance with NEMMCO Operating Procedure SO_OP6100 S8.1.3.1. This procedure states that without special<br />

agreement, if an unplanned outage of one protection of a duplicated scheme is longer than sixteen hours, then the power<br />

system equipment must be switched out of service unless the protection scheme has been repaired or temporary protection<br />

installed.<br />

The replacement of the 220 kV transmission line protection schemes will ensure that <strong>Transend</strong> complies with the<br />

requirements of the NER and NEMMCO Operating Procedures as identified in Table 2. The protection schemes will also<br />

continue to comply with the other clauses of the NER (ie S5.1a.8 and S5.1.9) that the existing schemes comply with.<br />

Table 2 – Compliance obligations, issues and project objectives<br />

Reference Compliance obligation Substation issue Project objective<br />

NER<br />

S5.1.2.1(d)<br />

‘The Network Service Provider must ensure that<br />

all protection systems for lines at a voltage above<br />

66 kV, including associated inter-tripping, are<br />

well maintained so as to be available at all times<br />

other than for short periods (not greater than<br />

eight hours) while the maintenance of a<br />

protection system is being carried out.’<br />

Should either of the 220 kV<br />

transmission line protection schemes<br />

fail, it is possible that the scheme<br />

would not be restored within the<br />

time required to comply with this<br />

obligation<br />

1 <strong>Transend</strong> Networks Pty Ltd, Asset Criticality Assignment Standard, TNM-GS-809-0915<br />

Replace the 220 kV<br />

transmission line protection<br />

schemes with new,<br />

protection schemes that are<br />

unlikely to fail during<br />

routine testing.<br />

2 Power Systems Consultants, <strong>Transend</strong> Audit Assessment of Compliance with the National Electricity Code, March 2005.<br />

© <strong>Transend</strong> Networks Pty Ltd 5 of 7

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