[LINK] Green Grid

[stephen at melbpc.org.au]

"UNLOCKING RENEWABLE ENERGY RESOURCES IN SOUTH AUSTRALIA"

"In times of high wind, enough power would be generated from wind energy  
to meet the equivalent of the entire State’s average electricity needs."


<http://www.renewablessa.sa.gov.au/files/final-green-grid-report---public-
version.pdf> (snip) ..


This report is an assessment of the feasibility for new transmission 
investment to unlock wind energy generation in the Eyre Peninsula, a 
region long recognised for its significant wind energy resource but 
constrained due to a lack of electricity transmission. 

We have found a viable business case can exist for investment in new 
transmission to support 2000MW of new generationin the Eyre Peninsula, in 
wind zones that are highly suitable for large scale wind farming. 

South Australia already leads the nation in renewable energy with 
approximately 900MW of installed wind generation and potential for up to 
an additional 1000MW in parts of the state where grid capacity currently 
exists. 

To support additional generation beyond this we propose a Green Grid on 
the Eyre Peninsula supported by system upgrades in South Australia and to 
Heywood in Victoria which would increase capacity for an additional 
2000MW of wind energy generation and enable South Australia to become a 
significant exporter of electricity. 

The assessment has been undertaken in three parts. 

Firstly, wind speeds and wind farm energy yields have been assessed, as 
well as social and environmental suitability for large scale wind 
farming, to identify generation opportunities in the region. Secondly, 
transmission that would be needed to connect this generation to the 
National Electricity Market (NEM) has been assessed. And thirdly, the 
augmentation that would be needed in the existing grid, or ‘shared 
network’, for this generation to be transmitted to demand centres has 
been assessed. 

1. Suitability for large-scale wind energy generation. 

The Consortium finds the Eyre Peninsula offers extensive opportunities 
for wind generation, with four ‘wind zones’ identifiedas being 
particularly attractive. These zones experience wind speeds above 8 
metres per second with the potential for more than 10,000 MW of 
generation. 

The social and environmental assessment also supports large scale 
generation occurring in these areas. The Eyre Peninsula covers 45,000 km2 
from Port August in the north to Port Lincoln in the South and to Streaky 
Bay in the west. It has a local population of 55,000 in a region similar 
in size to Tasmania. Sensitive environments including National Parks and 
reserves of high conservation value, wetlands and coastal views of 
significant community value have been considered. Outside of these areas 
are large areas of disturbed agricultural land suitable for wind farming. 

Our assessment suggests the community pressures that are increasingly 
experienced in areas of higher population density are less likely to be 
experienced in this region.

These factors, which strongly support new wind generation on the Eyre 
Peninsula, have been considered against the costs to developers and to 
the energy network of overcoming transmission constraints. 

2. Connecting wind energy generation in Eyre Peninsula to National 
Electricity Market

The Consortium has assessed the necessary transmission that would be 
needed to link any or all of these four wind zones to the NEM and how 
this can be financed. It is proposed that a high voltage 500 kilovolt 
(kV) above ground transmission network be established from Davenport 
(near Port Augusta) to the west coast at a connection point near Elliston 
via a central connection point which we call the Central Region. This 
configuration would connect new generation of up to 2000 MW in two zones 
at an estimated capital cost of $613m.

3. Strengthening the shared network in South Australia and connection to 
Victoria 

It is proposed that a 500 kilovolt (kV) network form a new transmission 
backbone from Davenport near Port Augusta toHeywood in Victoria. This 
high capacity line would connect to existing substations to complement 
the existing 275 kV South Australian network and provide the foundation 
for future new generation opportunities as well as potential advances in 
grid system management (e.g. use of smart metering and energy storage).

This significant investment would enable the South Australian electricity 
system to support a very different fuel source from what it does today.

In times of high wind, enough power would be generated from this source 
to meet the equivalent of the entire State’s average electricity needs. 

In practice, a large amount of this power would flow to Victoria which 
operates a 500kv network. It would also result in a stronger network 
within the State capable of withstanding unexpected line faults and allow 
increased supply to currently constrained loads.

Financing Green Grid augmentations

The business case to construct and finance new transmission for Eyre 
Peninsula assumes that electricity generated in the Eyre Peninsula can 
reach load centres in Victoria. 

Augmentation upgrades of the network from Davenport in South Australia to 
Heywood in Victoria would be required to strengthen the network and 
increase export capacity. 

We have assessed a number of transmission augmentation scenarios to 
identify the credible option that could maximise the net economic benefit 
of electricity consumers and producers. The Consortium’s initial 
assessment suggests that that the ‘market benefits’ of increasing the 
transmission carrying capacity forwind generation for an additional 
2000MW would exceed the capital and operating costs of transmission 
augmentation. Accordingly the proposed transmission augmentation would 
provide an overall net economic benefit 

ECONOMIC AND EMPLOYMENT IMPACT OF GREEN GRID

The transmission investments proposed in the business case would result 
in considerable economic benefits for the State and the nation. 

Evans & Peck was engaged to assess the economic impact (direct and 
indirect) of the proposed project.

The proposed transmission investments for Green Grid Stage 1 would create 
2000MW of additional generation opportunities worth approximately $4.5 
billion in wind energy generation. 

It estimated that Green Grid Stage 1 would create around 1400 direct 
construction jobs, an additional 1600 indirect jobs during construction 
and approximately 5000 FTE jobs in total over at the first 20 years of 
the operational life of the project. 

International experience has shown that windenergy projects generate more 
new jobs than conventional fossil fuel projects per kilowatt hour, 
approximately 27% more than coal and 66% more than natural gas. This is 
in part because wind farms generate additional revenue for the 
landholdersfrom the energy. 

Strong demand for wind generation may encourage local manufacturing of 
wind turbines in Australia. A consistent build program of large scale 
wind farms in the Eyre Peninsula could be a favourable consideration in 
any such assessment. 

The Consortium believes a viable business case exists for implementation 
of Green Grid.

(This presentation has been prepared by Macquarie Capital Advisers 
Limited for the sole purpose of providing an overview of Green Grid. This 
presentation has been prepared on the basis of publicly available 
information and information made available to Macquarie by Worley 
Parsons, Baker & McKenzie, MMA, Evans & Peck and a range of wind energy 
developers. Macquarie has relied upon and assumed, without independent 
verification, the accuracy and completeness of all such information.)

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Cheers,
Stephen