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Powerlink has published a Project Assessment Conclusions Report (PACR) to maintain power transfer capability and reliability of supply at Kemmis. Publication of the PACR is the final step in the Regulatory Investment Test for Transmission (RIT-T).
Kemmis substation, located approximately 32km north west of Nebo, was established in 2002 to support the load growth arising from the expansion of mining in the northern Bowen Basin and to provide a bulk-supply injection point to the Ergon distribution network (part of the Energy Queensland group).
Power transformer 1 (Transformer 1) was first assembled and energised at an alternate site in 1984 and relocated to Kemmis substation in 2003 as part of the substation’s original development.
Having been in-service for almost forty years, a recent condition assessment indicates that Transformer 1 is nearing the end of its service life and is displaying a number of condition-based issues.
Powerlink planning studies have confirmed there is a long-term requirement to continue to supply the existing electricity services provided by Kemmis Substation. Powerlink must therefore take action to avoid the increasing likelihood of unserved energy arising from failure of the transformer at Kemmis, and ensure customers are provided with a reliable and safe supply of electricity.
In September 2023, Powerlink published a Project Specification Consultation Report (PSCR) that identified replacement of Transformer 1 by 2026 as the preferred option to maintain power transfer capability and reliability of supply at Kemmis. The indicative capital cost of the RIT‑T project for the preferred option is $6.78 million in 2022/23 dollars.
The PSCR also indicated Powerlink’s intention to claim exemption from producing a Project Assessment Draft Report, as allowed under the National Electricity Rules. Powerlink did not receive any submissions in response to the PSCR, which closed on 22 December 2023. As a result, no additional credible options that could deliver a material market benefit have been identified and the outcomes of the economic analysis in the PACR are unchanged from those in the PSCR.
The PACR recommends replacement of Transformer 1 by 2026, at an estimated capital cost of $6.78 million in 2022/23 prices. Powerlink is the proponent of this network project.
In the context of engagement activities with customers and the general community, Powerlink has assessed this project as ‘minor’ on the RIT-T stakeholder engagement matrix.
Copies of the PSCR and PACR are available below.