Transpower originally submitted a proposal in 2005 to replace Pole 1 of the HVDC link by 2010. However, in June 2006, Transpower and the Electricity Commission agreed that there was merit in suspending the proposal until such time as a clear assessment framework could be established for application of the Grid Investment Test (GIT).
Transpower and the Electricity Commission have now established the process for assessing the proposal as an “economic investment” under Part F.
Workshop and Submissions
Transpower held a workshop and invited submissions during June/July on the assumptions, methodologies and options that will be used in the preparation of the HVDC Pole 1 replacement proposal.
Information Gathering on Generation Scenario assumptions extended
As a result of feedback received at the workshop, Transpower extended the closing date for submissions on the Generation Scenario assumptions.
Specific feedback on the proposed generation projects, generation capital costs and generation cost drivers was received from 5 parties. Additionally Transpower met with 3 parties individually, on request.
All feedback is being considered for inclusion into the GIT assumptions (databook). Some feedback may result in changes to the generation project list, while other feedback may be incorporated into the sensitivities Transpower intends to undertake.
On 31 August the Electricity Commission wrote to Transpower to clarify its view regarding the development of credible generation scenarios.
Further explanation of GEM (Generation Expansion Model)
As a result of feedback received at the workshop regarding the Electricity Commission’s Generation Expansion Model GEM (the model being evaluated for use in determining the generation scenarios to be considered within the HVDC replacement investigation project), the Electricity Commission held GEM briefing sessions on 15 and 18 June. Further briefing sessions can be arranged if required. It is expected that the Electricity Commission will publish further explanatory documentation on GEM shortly.
Some independent critiques of GET and the modifications Transpower considers are required if GEM is to be used in applying the Grid Investment Test.
Please note that these reviews were based on the model version available at that point, and therefore some points may either be now irrelevant or addressed in the latest GEM model version.
As a result of feedback received at the workshop and as a separate process to the submissions above, Transpower sought submissions on the adequacy of Transpower’s justification for retiring Pole 1 as outline in the support documents of Volume 3 of the 2005 Grid Upgrade Plan.
Transpower held an HVDC meeting on 1 August to hear comments from interested parties in relation to an appropriate consultation process and timetable under the Electricity Governance Rules, prior to Transpower and the Commission discussing and finalising these arrangements.