Electricity Asset Management Plan 2019-2029
76
Vector Limited://
tolerable fault rates. We can also use a number of analytical tools and models to improve our overall SAIDI-SAIFI performance. These targets help us set the priorities for our maintenance and investment plans.
There is a comprehensive set of network reporting tools (including dashboards) that are used to monitor network performance and provide visibility and access to key data and information to help drive performance levels. We also report to the board on service-level performance and focus on how best to remedy any problems that might prevent us meeting our service-level targets. 4.1.2 OUR RELIABILITY AND RESILIENCE STRATEGY Electricity consumption is changing rapidly as consumers electrify their lives. This is increasing expectations of the energy system’s reliability and as a first step we have developed a Reliability and Resilience Strategy that is owned by the Head of Asset Management. Consumer dependency on electricity will continue to rise with the adoption of new technology and the uptake of electric cars. In parallel with this, the impact of climate change is being felt more and more in New Zealand, and across the world. Climate change is increasing the likelihood of adverse weather, and it’s clear the number and duration of electricity outages will rise with this. On any given day, there are likely to be multiple threats to our network’s resilience – for example, high winds or a combination of drought and high temperatures. These threats can heighten our resilience risks, create short-term localised damage, along with long-term challenges to electricity supply. The New Zealand electricity system is particularly vulnerable to environmental impact with 80 percent of our electricity coming from climate-dependent wind and hydro generation. Auckland is at risk from a wide range of natural disasters because of its location on a narrow coastal strip poised on top of a volcanic field. Environmental factors, including climate change, in combination with natural hazards, will impact on each part of the electricity system differently, but will, ultimately, have a direct effect on our customers. While the Vector network currently averages 99.96% availability, as electricity becomes increasingly critical consumers may no longer find this enough. However, in increasing resilience Vector is reluctant to burden future generations with costly solutions that have long-term, regulated cost recovery periods (currently only 10 years certainty on revenue stream) and may only benefit a few. For example, there are resilience threats to generation and transmission, because of drought, natural disasters or equipment failure, and this will have a flow-on impact on the distribution network regardless of any new reliability and resilience measures imposed. As increased resilience comes at a cost that is ultimately borne by consumers we believe the various options, trade-offs, and costs should be transparent – especially when new technology is creating greater choice, and more household-based resilience options. Some options, such as household solar and battery storage installations, and Vehicle-to-Home (V2H) electric vehicle technology, provide extra benefits. For example, they can off-set energy costs and provide carbon benefits. These new technologies increase resilience options for consumers and don’t require investment in long life network assets. They provide households and businesses with greater control, have shorter financial returns that don’t burden future generations and come with a guarantee that consumers will directly benefit from their resilience investments. A smart, resilient, energy future will embrace multiple solutions. Part of this, in regard to our reliability and resilience strategy is to support consumers so they understand the options available to them, and the necessary trade-offs should they take more direct action with respect to their energy resilience. Previously, only network, transmission or generation- based solutions were available to increase resilience. The emergence of new technology, and the rapidly declining cost curve, is creating new opportunities for customer-controlled resilience options. We have completed various trials with new technology options and will continue to do more during this AMP period. The learnings from these trials are continually informing us of the efficiency and effectiveness of the new technology options in improving the customer’s experience during outages and network emergencies.
Vector typically evaluates the trade-offs associated with have the following investment options when it comes to improving reliability and resilience:
• Establishing microgrids using distributed and renewable generation • Undergrounding or relocating exposed parts of the network • Using new network storage options • Using technology options such as aerial bundled conductors (ABC) and/or covered conductors • Changing the configuration of the network so it is more meshed
Made with FlippingBook - professional solution for displaying marketing and sales documents online