5 February 2014

Where the technical limits of a distribution system will be exceeded and the rectification options are likely to exceed $10M, Ergon Energy is required under the National Electricity Rules s5.6.2(f) to consult with affected Registered Participants, AEMO and Interested Parties within the time required for corrective action and meet certain requirements, including undertaking analysis that satisfies the AER’s Regulatory Test, in selection of an appropriate solution.

Ergon Energy Corporation Limited (Ergon Energy) is responsible (under its Distribution Authority) for electricity supply to the Atherton Tablelands area in Far North Queensland. We have identified emerging limitations in the electricity distribution network supplying the southern Atherton Tablelands area. The loads on Ergon Energy’s 22kV network in the southern Atherton Tablelands area have progressively increased such that action is required if reliable supply is to be maintained.

Initial corrective action is required as soon as possible. However the earliest that a network solution can be delivered is by the summer of 2015/16. A decision about the selected option is required by February 2014 if any option involving significant construction is to be completed by November 2015.

Ergon Energy published a Request for Information relating to this emerging network constraint on 25 July 2012. Two external submissions and one internal submission were received by the closing date of 19 September 2012.

Ergon Energy published a Consultation and Draft Recommendation on 11 December 2013. One submission to the Consultation and Draft Recommendation was received by the closing date of 15 January 2014.

Three feasible solutions to the emerging network constraint have been identified: 

• Option 1: Establish a new 66/22kV substation with one 10MVA transformer near Malanda by November 2015.
• Option 2: Implement customer embedded generation to defer the establishment of Malanda 66/22kV Substation until November 2019.
• Option 3: Develop one new 22kV feeder to Malanda and defer the establishment of Malanda 66/22kV substation until November 2020.

In accordance with the requirements of the National Electricity Rules (NER), this is now a Final Report where Ergon Energy provides both economic and technical information about possible solutions, and the solution decided on, being Option 2, to implement customer embedded generation to defer the establishment of Malanda 66/22kV Substation until November 2019. 

 Ergon Energy Consultation and Draft Recommendation

 Information relating to the consultation about this project is provided on our web site:

https://www.ergon.com.au/community--and--our-network/network-management/regulatory-test-consultations

For further information, please email: regulatory.tests@ergon.com.au