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Meeting Network Planning Requirements at George Town

Overview

George Town substation is the sole substation supplying the George Town area in the northeast of Tasmania. It is the connection point for generation and Basslink, the interconnector which links the Tasmanian and Victorian electricity networks. It also supplies transmission connected customers at Bell Bay, a major industrial area in Tasmania.

The Tasmanian Government published the Tasmanian Renewable Hydrogen Action Plan (TRHAP) in 2020. The TRHAP envisions Tasmania as a major producer and exporter of hydrogen by 2030, via the development of a Tasmanian Green Hydrogen Hub (TGHH). The Australian and Tasmanian Governments have agreed to develop the TGHH in Bell Bay.

In December 2024, Renewables, Climate and Future Industries Tasmania (ReCFIT) opened the TGHH Registration of Interest (RoI) stage, which offers hydrogen market participants an opportunity to provide an early indication of their capacity to work with Tasmanian Government to develop the TGHH.

The RoI indicates that the successful TGHH proponent could utilise 300 MW of new load via the George Town substation, following further investment from TasNetworks to meet minimum network performance requirements.

Our role

TasNetworks is resolute in its commitment to power system performance and security which underpins the delivery of safe and reliable services for our customers.

As Tasmania’s transmission network service provider, when planning Tasmania’s power system we are required to comply with the minimum network performance requirements outlined in the Electricity Supply Industry (Network Planning Requirements) Regulations 2018.

Following the commitment of new load (via a hydrogen proponent or other) connecting into the George Town substation, issues begin to emerge on the shared transmission network. Specifically, the power system begins to approach operating conditions that are no longer compliant with the minimum network performance requirements.

TasNetworks will apply the Regulatory Investment Test for Transmission (RIT-T) process to determine which investments should be pursued to meet the network planning requirements, following the commitment of ≥210 MW of new load at George Town.

The Regulatory Investment Test for Transmission (RIT-T) Process

The RIT-T is designed to help identify the most appropriate future investment(s) needed to meet our network planning requirements in George Town, while ensuring that costs borne by network users are transparent and justifiable.

We are initially seeking responses to our Project Specification Consultation Report (PSCR) to help inform what solutions (both network and non network) are likely to be available and their anticipated costs. This is to encourage the most technically efficient and cost effective outcome for our customers.

At this point, we have identified one credible option to meet network planning requirements following the establishment of new load at George Town. This option was identified as a contingent project in our revenue proposal for the 2024‑2029 regulatory control period and involves the rearrangement of the existing George Town substation, the construction of a new substation and installation of additional reactive support to support voltage stability.

We are hopeful that responses to our PSCR will assist with identifying further credible options so that we can pursue the solution that minimises the economic impacts on our customers, while still meeting our regulatory obligations.

As part of this process, three main documents will be produced and consulted on:

  1. The Project Specification Consultation Report (PSCR) describes the need for investment, potential credible options to address the identified need, and technical information to encourage solutions from non-network proponents.
  2. The Project Assessment Draft Report (PADR) describes the results of the cost benefit analysis and identifies the preferred option.
  3. The Project Assessment Conclusion Report (PACR) confirms the preferred option and provides a summary of submissions and responses received during the PSCR and PADR.

The anticipated sequence of events for the RIT-T is shown below.

Consultation

Project Specification Consultation Report

TasNetworks is seeking stakeholder submissions on the various issues and credible options that have been presented in the PSCR. We are particularly interested in receiving submissions from providers of non network services that could potentially be used to avoid or defer the need for network investment.

Key Dates

TasNetworks is seeking written submissions to the PSCR over a 12 week period ending at COB Friday 28 February 2025.

Submissions in relation to the PSCR can be sent directly to: regulation@tasnetworks.com.au.

A copy of the PSCR can be found below.

For further information, please contact: Matthew Clarke (Leader Large Regulated Investment) at regulation@tasnetworks.com.au.

Next Steps

We intend to publish a PADR within 12 months of the PSCR consultation period ending including:

  • A description of which credible options have been assessed.
  • Indicative costs of each credible option.
  • A description of the methodologies used to quantify costs and benefits.
  • A net present value analysis for each credible option.
  • A proposed preferred option, taking into account the net present value analysis as well as any other considerations deemed appropriate and allowable within the RIT-T framework.

Publication of the PADR is followed by a further 6-week consultation period.

A PACR will then complete the RIT-T process.

Further information

TasNetworks is currently undertaking several other RIT-T projects. Further information on these projects can be found on our website.