Vector Electricity Asset Management Plan— 2020 Update
4 – delivering our plan
As in Section 6 of the 2019 AMP, this section outlines how we have developed an optimal portfolio of works so as to improve service levels and deliver on our strategic outcomes. The expenditure plans from AMP19 have been reviewed with consideration to internal operating changes, new and amended customer needs, and external influencing factors such as DPP3 and other regulatory and policy change. Please note that at the time of publishing this AMP update, there is great uncertainty around the likely impact of the COVID- 19 pandemic on our delivery of these plans. Should material changes to the CAPEX and OPEX profiles of the electricity business occur as a result of the pandemic, this will be identified in Vector’s 2021 Asset Management Plan.
4.1
Drivers for change
As we have prepared the expenditure plans for this AMP update, we have considered the material changes from the previous AMP and the influencing factors behind that change.
CUSTOMER CONNECTIONS Distribution prices are designed in line with Pricing Principles published by the Electricity Authority to efficiently recover the cost of the existing electricity distribution network and send price signals to users when new investments are required. We have reviewed our policy on Capital contributions and updated it effective from 1 February 2020. The policy published on our website 6 meets the requirements of clause 2.4.6 of the Electricity Distribution Information Disclosure Determination 2012. Consumers requiring new or enhanced connections or sole use assets, are required to fund their connection and sole use assets directly via capital contributions. These capital contributions take the form of an upfront one-off payment and will be netted off the value of new assets added to the Regulatory Asset Base (RAB) per the Input Methodologies 7 . The new policy anticipates 100% contribution for all new consumer connection activity. A SYMPHONY APPROACH: IMPACT OF SOLAR/PV ON THE NETWORK As part of our Symphony strategy, Vector supports the uptake of solar connections to the network. However, where there are clusters of high solar uptake this can lead to increased local voltage levels that exceed the statutory maximum limits. A solution to mitigating this adverse effect is utilising the smart voltage influence technology available within the inverters of new solar connections (the AS/NZS4777 standard device used to interface new solar the network). The cause of a problem now becomes part of the solution allowing increased solar to be connected to the network with reduced adverse impact. We anticipate a large portion on solar connections going forward will have associated battery storage, thereby reducing the solar input to the network during light network load. These customer-centric solutions mean we can revisit the network upgrades planned to relieve voltage and capacity constraints. We will continue our modelling to more granular levels with smart meter data to ensure the most appropriate solution is implemented to achieve the best outcomes for our customers. A SYMPHONY APPROACH: INCREASED PROVISION FOR LV NETWORK TRANSFORMER UPGRADES DUE TO EVS Another key component of Symphony is allowing for the increased uptake of EVs. While little network impact caused by the uptake rate is anticipated within the next 5 years, later year planned spend has been increased to match the expected increased rates of uptake. The desired outcome is for most EV charging to occur outside local network peak times, however, even a modest 20% of EV total potential maximum charging demand coinciding with the local peak will have a significant adverse impact on the existing network capacity. In a similar vein to the modelling noted for solar uptake, further detailed modelling is required to better quantify the impacts and required solutions and for this access to smart metering data is required. Future AMPs will include the outcomes of this modelling. ALLOWING FOR GREATER AUCKLAND’S CONTINUED GROWTH The Warkworth area is forecast to grow and in order to ensure the necessary supply is available and supported, the subtransmission programme of activities included in the 2019 AMP has been reviewed and amended to ensure this is achieved as well as aligning with planned NZTA and Auckland Transport (AT) activities for new and existing roadways. ADDRESSING THE CUSTOMER NEED The replacement of the existing 33kV outdoor switchgear at Wellsford zone substation will be completed in conjunction with Transpower and Vector is dependent on Transpower's project timing. The project was pushed out by one year to suit
6 https://blob-static.vector.co.nz/blob/vector/media/vector-regulatory-disclosures/200201-policy-for-determining-capital-contributions-electricity-distribution.pdf
7 https://comcom.govt.nz/__data/assets/pdf_file/0017/60542/Electricity-distribution-services-input-methodologies-determination-2012-consolidated-29-January-2020.pdf
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