Powerlink must undertake the Australian Energy Regulator’s (AER) Regulatory Investment Test for Transmission (RIT-T) when potential solutions to replace network assets or help increase the capacity of Queensland’s high voltage transmission network are over a $6 million threshold as defined in the National Electricity Rules.
Part of our role is to plan and review the future of Queensland’s electricity transmission network to meet forecast electricity demands.
We review the transmission network annually to assess its ability to meet forecast electricity needs for the next 10 years. The review helps ensure that existing network assets are assessed for their enduring network requirements in a manner that is economic, safe and reliable. It also identifies potential solutions to meet increases in electricity demand, well in advance of when action is needed.
The review findings are published in the Transmission Annual Planning Report (TAPR), a technical document that includes information about the potential future need for asset reinvestment (replacing existing assets) or network augmentation (increasing the network’s ability to carry more electricity).
The RIT-T applies the economic assessment framework developed by the AER to ensure recommended solutions have maximum net economic benefits. For solutions addressing ageing network assets, risk costs are quantified using a methodology consistent with guidelines published by the AER.
The public consultation process requests submissions from Registered Participants, AEMO and interested parties (including non-network solution providers) on the proposed options. Transmission network, distribution network or non-network alternatives (such as demand management or local generation) are considered as options for both reinvestment and augmentation needs.
The RIT-T applies to transmission augmentation investment consultations initiated from 1 August 2010 onwards and more recently for network asset replacements from 18 September 2017.
RIT-T Consultation Process
Powerlink must undertake the Australian Energy Regulator’s (AER) Regulatory Investment Test for Transmission (RIT-T) when potential solutions to reinvest in network assets or increase the capacity of Queensland’s high voltage transmission network are over a $7 million threshold as defined in the National Electricity Rules.