AMP 2019-2029

Electricity Asset Management Plan 2019-2029

192

Vector Limited://

The capital investment described in this ‘Needs Statement’ will target the improvement of network resilience with a focus on our OH network. This will involve amongst others improving the insulation coordination in areas that are prone to outages caused by lightning by undertaking a detailed insulation coordination study to ensure the network is properly protected against overvoltages. It will involve installing additional lightning arrestors at strategic locations to remove overvoltages due to lightning and switching surges. We will trial the installation of a variety of equipment to make the network more resilient against strong winds and falling branches and tree bark e.g. improved stays and/or additional stays, the use of 11 kV aerial bundled conductors, spaced covered conductors and, grouped covered conductors. Vector will actively investigate with equipment vendors equipment and installation methodologies that might improve resilience. The active control of vegetation is another major programme but this is described under a separate ‘Needs Statement’ further above in Section 5.

We regularly liaise with City Power in Melbourne and Western Power in Perth on their asset management strategies for OH lines in adverse environmental conditions and the lessons that they have learnt.

TARGETED OUTCOMES

CUSTOMER EXPERIENCE

SAFETY

RELIABILITY

RESILIENCE

OPERATIONAL EFFICIENCY

CYBER SECURITY AND PRIVACY

OPTIONS CONSIDERED

DESCRIPTION

DISCUSSION OF OPTION

ESTIMATED COST (NPV IF APPLICABLE)

STATUS

Option 1: Do nothing

A do-nothing approach is not an option and will continue to result in poor SAIFI and SAIDI indices, poor experience by customers of Vector’s electricity network, poor service levels and risk to Vector’s reputation. In light of the predicted impact of climate change and environmental events this option is not viable and is rejected New technology options such as Microgrids are a viable alternative option to improve resilience especially to remote rural parts of the network. Solar panels and on-site batteries are options by customers themselves to improve resilience but notwithstanding that customers can and will use these as options to improve their own resilience there are feeders and supplies where it is not practical to rely on either new technology options or customer initiated options to maintain service levels and capital investment is needed to improve the reliability of the network to acceptable service levels. Section 5 contains a number of Microgrid projects and is only rejected as an option for this specific programme. Investing capital to improve network reliability is necessary to maintain service levels to customers and to maintain SAIDI and SAIFI reliability indices levels to regulatory levels. This investment is necessary to make the Vector network ready for the anticipated impacts of climate change and environmental events.

Rejected

Option 2: Use new network technology options such as microgrids, solar panels and domestic on-site batteries

Rejected as a solution for this specific programme

Option 3: Invest capital to improve the reliability of the network

$10.50M Selected

PROPOSED INVESTMENT SUMMARY ($MILLION NOMINAL)

DESCRIPTION

FY20

FY21

FY22

FY23

FY24

FY25

FY26

FY27

FY28

FY29 TOTAL

Auckland resilience improvements

0.55

0.55

0.55

0.55

0.55

0.55

0.55

0.55

0.55

0.55

5.50

Northern resilience improvements

0.50

0.50

0.50

0.50

0.50

0.50

0.50

0.50

0.50

0.50

5.00

Total CAPEX

1.05

1.05

1.05

1.05

1.05

1.05

1.05

1.05

1.05

1.05

10.50

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