NEM Future Forum Tony Meehan, TransGrid Regulation, renewable connections, electricity transmission, National Electricity Market

1. Unlocking Australia’s
renewable energy future
Tony Meehan, Executive Manager, Regulation
NEM Future Forum 2017, 31 October 2017
#NEMFF17

2. Unlocking Australia's renewable energy future | October 20172
Backbone of Australia’s Electricity System
TransGrid is the operator and manager
of the NSW transmission network
NSW is the largest region in the
National Electricity Market
NSW
Centre of the NEM
connecting QLD and VIC
32% of Australia’s
population
34% of energy
consumed in the NEM

3. Unlocking Australia's renewable energy future | October 20173
Disruption at the source of energy
NEM existing generation capacity mix
Coal
49%
CCGT
5%
OCGT
14%
Gas other
5%
Solar*
0.58%
Wind
9%
Water
17%
Biomass
1%
Other
0.30%
Coal CCGT OCGT Gas other Solar* Wind Water Biomass Other

4. Unlocking Australia's renewable energy future | October 20174
Dramatic change as generation retires
Source: AEC

5. 1
3
2
Unlocking Australia's renewable energy future | October 2017
Reducing emissions
 Transmission networks are integral to
reducing emissions in the electricity
sector by transporting energy between
areas with abundant renewable resources
and areas where electricity is used.
Affordability
 Transmission networks deliver
affordability for consumers as the
platform on which the competitive
wholesale electricity market operates.
Energy security
 Transmission networks maintain energy
security through core expertise in power
system security and stability, and a
thorough understanding of the planning
and operation of the power system.
5
Role of transmission in the future energy system

6. Unlocking Australia's renewable energy future | October 20176
Significant impact for consumers
Price impact of expanding renewables, and coal-plant closures
Source: Professor Ross Garnaut
550MW Topaz Solar Farm in California

7. Unlocking Australia's renewable energy future | October 20177
Cost of renewable generation is going down
PV module prices and learning curve
calculation
The cost of wind turbine continues to fall
Source: Bloomberg New Energy Finance, Paul Maycock, company filings Source: Bloomberg New Energy Finance Note:
Data by contract signing date

8. Unlocking Australia's renewable energy future | October 20178
Predicted future generation in the NEM
Source: ENA Roadmap 2017

9. Unlocking Australia's renewable energy future | October 20179
The transition to large-scale renewable sources of
energy will be enabled by transmission
A trajectory towards
100% renewable
generation is feasible,
and the technical
challenges associated
with this transformation
can be met in a way that
is affordable for
consumers.
Connection of large-scale renewable generation in areas with abundant renewable resources could be enabled by
extension of the transmission network to those areas.

10. Unlocking Australia's renewable energy future | October 201710
A strategic approach is required
A strategic approach to identifying renewable zones at lowest cost, considering the best renewable
resources and compatible land use.
Criteria for consideration:
 Solar PV resource
 Wind resource
 Site elevation
 Site slope
 Parcel size
 Land tenure
 Land use
 Land cover
 Protected areas
 Prohibited areas

11. Unlocking Australia's renewable energy future | October 201711
Study of new energy zones – solar resources
A significant amount of solar resource exists
within the study area.
In order to provide efficient and effective
renewable zones, solar generation should
be located near to the wind resource.
Approximately 40GW of solar has been
identified between Yass and Balranald and
another 20GW between Balranald and
Casterton.

12. Unlocking Australia's renewable energy future | October 201712
Developing an integrated grid plan
Source: TransGrid’s Transmission
Annual Planning Report 2017
Finkel recommendation 5.1
“By mid-2018, the Australian Energy Market
Operator, supported by transmission
network service providers and relevant
stakeholders, should develop an integrated
grid plan to facilitate the efficient
development and connection of renewable
energy zones across the National Electricity
Market.”
- Independent Review into the Future Security of the
National Electricity Market

13. Unlocking Australia's renewable energy future | October 201713
A successful transition
Connection of large-scale renewable
generation
Sharing of geographically diverse
resources
New ancillary services to manage system
stability
Regulatory framework to evolve to
support the system

14. Unlocking Australia's renewable energy future | October 201714 /