Strategic planning of our power system is crucial to making smart, informed decisions in the long-term interests of Australian energy consumers. AEMO and TransGrid are jointly undertaking the Victoria to New South Wales interconnector Upgrade Regulatory Investment Test for Transmission (RIT-T) to assess the technical and economic viability of alleviating power transfer capacity limitations between Victoria and New South Wales.

Regulatory Investment Test for Transmission

The RIT-T process is a regulatory mechanism that applies an economic cost-benefit test on new transmission electricity infrastructure proposed for the NEM. It is designed to identify the most economically efficient infrastructure investment option, so the investment meets the long-term needs of consumers.

The RIT-T process requires transmission network planners considering significant investment in new transmission infrastructure to publish three reports:

1. The Project Specification Consultation Report (PSCR) seeks feedback and advice on the identified need for new transmission infrastructure.
2. The Project Assessment Draft Report (PADR) identifies and seeks feedback on the preferred investment option.
3. The Project Assessment Conclusions Report (PACR) presents the transmission planner’s recommended solution to deliver the highest net economic benefit and intended course of action.

Project Assessment Draft Report (PADR)

On 30 August 2019, AEMO and TransGrid jointly released the Project Assessment Draft Report (PADR) (1.84 MB, pdf), which represents step two of the public consultation process for this RIT-T.

The PADR assesses and identifies the draft preferred transmission investment option which delivers the greatest net market benefits. The PADR also provides a summary of submission received on the Project Specification Consultation Report (PSCR).

To inform the next phase of the RIT-T process, AEMO and TransGrid invite written submissions on this PADR, including comments on the inputs, analysis and choice of preferred option. Submissions are due on or before 11 October 2019 via planning@aemo.com.au.

Please see below additional supporting documentation to the PADR:

• Attachment A – Input Assumptions (4.52 MB, xls)
• Attachment B – Market Modelling Results (473 KB, xls)
• Attachment C – Market Benefit Calculations (145 KB, xls)

Project Specification Consultation Report (PSCR) 

On 15 November 2018, AEMO and TransGrid completed the first stage of the Victoria to New South Wales Interconnector Upgrade RIT-T and published for consultation a Project Specification Consultation Report (PSCR) (403 KB, pdf) identifying the need to alleviate current and projected limitations on power transfer capacity from Victoria to New South Wales, which are resulting in market costs through less efficient sharing of generation resources between states.

AEMO and TransGrid called for written submissions from interested parties in relation to the credible network and non-network options presented, and other issues addressed in the report.

Please see below non-confidential submissions received for the PSCR.

• Ausnet submission to the PSCR (194 KB, pdf)
• AEC submission to the PSCR (238 KB, pdf)
• EnergyAustralia submission to the PSCR (119 KB, pdf)
• ENGIE submission to the PSCR (59 KB, pdf)
• ERM submission to the PSCR (357 KB, pdf)
• Major Energy Users submission to the PSCR (175 KB, pdf)
• Meridian Energy Australia submission to the PSCR (61 KB, pdf)
• Smart Wires submission to the PSCR (157 KB, pdf)
• Snowy Hydro submission to the PSCR (186 KB, pdf)

One confidential submission was also received.

Stakeholder Engagement

AEMO is committed to working with industry, government, investors and consumers to secure and shape Australia’s energy future in the long-term interests of consumers.

We value your feedback and advice on this RIT-T, and are committed to ongoing dialogue with our stakeholders.

We will continue to provide updates as we move through this program and welcome your thoughts via our stakeholder engagement activities which will be announced on this page in the coming months. For more information, please contact planning@aemo.com.au.