Electricity Asset Management Plan 2019-2029
214
Vector Limited://
OPTIONS CONSIDERED Options to address the need identified above have been assessed and are summarised in the following table.
DESCRIPTION
DISCUSSION OF OPTION
ESTIMATED COST (NPV IF APPLICABLE)
STATUS
Option 1: Do nothing
Selecting the ‘Do-nothing’ option will result in non- compliance of the Code Allows compliance with the Code. This option means that load will be shed during frequency excursions and this will reduce the risk of loss of supply
Rejected
Option 2: Implement the Extended Reserves scheme
$0.60M Selected
PREFERRED OPTION Comply with the Electricity Industry Participation Code and provide an Extended Reserve scheme
PROPOSED INVESTMENT SUMMARY ($MILLION NOMINAL)
DESCRIPTION
FY20
FY21
FY22
FY23
FY24
FY25
FY26
FY27
FY28
FY29 TOTAL
Auckland extended reserves under frequency relays install Northern extended reserves under frequency relays install
0.20
0.20
0.40
0.40
Total CAPEX
0.60
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.60
5.3 NON-NETWORK ASSETS
5.3.1 INFORMATION SYSTEMS, PROCESSES AND DATA Electricity lines businesses like Vector are facing significant new challenges with customers adopting new technology to improve energy efficiency and support the decarbonisation of the economy. This disruption will continue and accelerate as the price points of the new technologies keep coming down at an increasing rate. Vector is faced with increasing uncertainty in how this will play out in the period of the 2019 AMP. A key disruptor is the take up of electric vehicles (EVs), and the way customers will charge their EVs. However, at the same time, new and cost effective asset management technologies and supporting digital and information management technologies are providing Vector with exciting opportunities to improve the way we monitor, control and manage our assets. These new technology options also provide secure and cost effective options for the way Vector engages with its customers, as well as how we enable customer to connect their distributed energy resources (DERs) and other new home automation technologies, seamlessly and effortlessly to the Vector network. As discussed under the Symphony scenario, we are developing the network in such a way that all customers can benefit from the connection and integration of various, on-premise DERs to the network, while developing incentives, signals and pricing structures to manage the assets in the long term interest of customers while ensuring affordability, fairness and equity. The proposed investment during the 2019 AMP period in enabling non-network digital systems, processes and information management will ensure Vector has the capability and tools required to manage the uncertainty we are facing in such a way that we do not burden future generations with legacy assets but create a network that is more responsive, flexible, integrated, modular and affordable. To this end, we have developed a plan with a higher degree of certainty for the first five years of the 2019 AMP and less certainty thereafter. Given the rate of change in technology, we continuously look for the optimal solution, whether this is through the use of new and emerging digital technologies or optimising existing solutions. This section is structure to reflect this, and comprised of three parts:
Significant projects & program investments Enabling projects Information systems, processes and data investments
Made with FlippingBook - professional solution for displaying marketing and sales documents online