Electricity Asset Management Plan 2019-2029
218
Vector Limited://
PROPOSED INVESTMENT SUMMARY ($MILLION NOMINAL)
DESCRIPTION
FY20
FY21
FY22
FY23
FY24
FY25
FY26
FY27
FY28
FY29 TOTAL
IT network modernisation
0.71
0.57
0.57
0.36
2.21
Total CAPEX
0.71
0.57
0.57
0.36
0.00
0.00
0.00
0.00
0.00
0.00
2.21
DISTRIBUTED ENERGY RESOURCE MANAGEMENT SYSTEM (DERMS)
NEEDS STATEMENT The rapid growth of Distributed Energy Resources across our network is posing a risk to the electricity network, but at the same time these DERs also create great opportunities for Vector and our customers when managed correctly. To manage these DERs, the key needs are full visibility of available DERs on the network, better understanding on their behaviour and potential impact on the network. Together with real time load and flexibility forecast, the Vector DERMS Platform can be used to achieve the following outcomes: • Reduction in the need for capital upgrades for replacement of traditional network assets, specifically power transformers at GXP and Zone Substations; and HV cables which is a long term multi-year benefit. • Ability to manage loading on critical network assets, particularly when the assets are under stress and during network outage events. This provides ability to maintain reliability and reduce the possibility of cascade failures. • Ability to use DERs and DR in support of restoration efforts, reducing loading on remaining assets in service to reduce the need for field switching to effect restoration to customers. Ability to accurately predict and quantify loading relief commitments to Transpower. Enables Vector to be more accurate with its committed load shedding levels. DERMS is a long-term investment asset that will also need continuing investment to be able to adapt to the changing environment, include new DER types and provide better customer outcomes utilising DERs. The idea is to integrate customers who want to play an active role and make the most use of their DERs.
TARGETED OUTCOMES
CUSTOMER EXPERIENCE
SAFETY
RELIABILITY
RESILIENCE
OPERATIONAL EFFICIENCY
CYBER SECURITY AND PRIVACY
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: Business as usual – no additional investment
Utilise existing DERMS capability and manage existing DER’s to reduce traditional investment in assets and manage peak demand. This option would not bring full benefits to Vector and its customers the number of new DER’s is increasing monthly, meaning existing DER types are increasing on numbers as well as brand new DER types are emerging. With these new DER Types new opportunities are being created to create value to Vector and its customers. This option is selected, to ensure ongoing development of DERMS and ensuring that opportunities are not being missed out or being used too late. DERMS is a key system for Vector to be able to create a new energy future.
Rejected
Option 2: Continue investment in DERMS
$4.0M Selected
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