The PADR confirms the 2018 ISP recommendation that there are significant net benefits associated with expanding transfer capacity between New South Wales and Queensland.
The PADR finds that uprating the Liddell to Tamworth lines and installing new dynamic reactive support at Tamworth and Dumaresq and shunt capacitor banks delivers the greatest expected net benefits of all options considered, and is the 'preferred option' at this draft stage of the RIT-T.
The analysis shows that the preferred option is expected to:
- deliver net benefits of approximately $200 million over the 25 year assessment period (in present value terms);
- reduce the need for new generation and large-scale storage in New South Wales to meet demand following Liddell Power Station’s forecast retirement over 2022 and 2023;
- lower the aggregate generator fuel costs required to meet demand in the National Electricity Market (NEM) going forward;
- avoid capital costs associated with enabling greater integration of renewables in the NEM; and
- generate sufficient benefits solely from avoiding what would otherwise be built in Liddell’s place to recover the project capital costs.