Powering Sydney s Future. TransGrid 330kV Cable Route Selection Process Summary

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1 Powering Sydney s Future TransGrid 330kV Cable Route Selection Process Summary

2 Contents Contents Executive summary Drivers for the project Options considered kV cable route selection process Preferred route Project timeline Stakeholder consultation Have your say on Powering Sydney s Future / Powering Sydney s Future - TransGrid 330kV Cable Route Selection Process Summary

3 1. Executive summary This document details the route selection process completed in relation to TransGrid s Powering Sydney s Future project. This project involves the installation of two new underground transmission cables connecting between TransGrid s Rookwood Road and Beaconsfield West substations. As part of the route selection process, a weighted assessment was completed of environmental, land use, engineering, cost, program and stakeholder risks associated with these options (outlined in Section 4). Through a detailed route selection study, one preferred route option has been identified for the new transmission cables. The preferred route utilises the existing road corridors between TransGrid s two substations (approximately 19.0 kilometres in length). As part of our commitment to engagement, TransGrid will be undertaking community consultation on the preferred route to support the environmental assessment processes, which will include the submission of an Environmental Impact Statement to the Department of Planning & Environment. TransGrid is committed to ongoing consultation throughout the life of the project and will continue to engage with potentially affected landowners and stakeholders as well as continue to meet with government bodies, the TransGrid Advisory Council and large energy users. 2. Drivers for the project A reliable, affordable and sustainable electricity supply is essential for our way of life. If you live, work or operate a business in the Inner Sydney area, you are connected to one of the most critical parts of the electricity network. Parts of the transmission and distribution networks which supply electricity to the Inner Sydney area were built in the 1960s and 1970s. Some of those assets are ageing and approaching the end of their serviceable lives. TransGrid and Ausgrid have been working together to identify the most economically viable solutions that will secure an ongoing reliable electricity supply to the Inner Sydney area. There are four key drivers for this project: > The deteriorating condition of ageing oil-filled underground cables in the existing network resulting in the derating of 330,000 Volt (330kV) Cable 41 operated by TransGrid (in 2011 and 2016) and the derating of a number of existing 132 kv cables operated by Ausgrid (beginning in 2012). > Ausgrid s planned retirement of three 132kV oil-filled underground cables in Inner Sydney in the next two years. > The age-related deteriorating condition of a further eight 132kV oil-filled Ausgrid underground cables in the Inner Sydney area. > Renewed economic activity within Inner Sydney has forecast an increase in consumer demand. Investigations have shown a solution will need to be in place by the early 2020 s. Transmission projects involve tight regulatory timeframes, requiring TransGrid to initiate investigations and planning processes now. 3. Options considered TransGrid, together with Ausgrid has considered a range of options to deliver a solution that is capable of securing safe and reliable bulk electricity supply to the Inner Sydney area. These options include network, non-network, or a combination of both. Network options would involve the design and construction of new electricity infrastructure such as underground cables or transmission lines. In contrast, non-network options involve the implementation of embedded generation, demand response, solar and storage solutions. TransGrid s network transports electricity from a number of different sources of generation including wind, coal, solar, gas and hydro. Electricity is then transported to large industrial consumers and to the distribution networks through substations. In the Greater Sydney Metropolitan Region these substations are located at: > Sydney North Substation in Dural; 3 / Powering Sydney s Future - TransGrid 330kV Cable Route Selection Process Summary

4 > Sydney East Substation in Belrose; > Sydney West Substation in Eastern Creek; > Holroyd Substation in Greystanes; > Rookwood Road Substation in Potts Hill; > Sydney South Substation in Picnic Point; > Beaconsfield West Substation in Alexandria; and > Haymarket Substation in Ultimo. In the early planning stages, the feasibility of options to improve the transmission network servicing the Inner Sydney area was investigated. This analysis presented potential transmission supply options from Sydney East Substation, Sydney South Substation, Sydney North Substation and Rookwood Road Substation into the Inner Sydney area. The feasibility study took environmental, engineering, social and cost implications into account at a high level and considered various supply modes (trenched, tunnel and overhead modes for transmission infrastructure). Several preliminary route and mode options were identified and it was determined that supply from Rookwood Road Substation to Beaconsfield West Substation was the most feasible in terms of relative benefits and costs. Following on from these findings in the feasibility study, TransGrid further investigated supply options from Rookwood Road Substation to Beaconsfield West Substation with a greater level of detail (refer to Section 4). In 2016, TransGrid and Ausgrid published the Project Specification Consultation Report (PSCR), which marked the first stage of the Regulatory Investment Test for Transmission (RIT-T) consultation process. This document set out in detail the need to ensure security of electricity supply to Inner Sydney and considered six potential credible options. In 2017, TransGrid and Ausgrid published the Project Assessment Draft Report (PADR), which marked the second stage of the RIT-T consultation process. This document discussed issues raised by stakeholders in submissions to the PSCR, outlined the credible options considered to address the need, and identified the preferred option for investment by TransGrid and Ausgrid. The preferred option included utilisation of a non-network solution to defer network options for up to one year, combined with a network component. The network component involves the installation of: > Two new 330kV underground cables (installed in parallel) between TransGrid s Rookwood Road Substation and Beaconsfield West Substation > One new 330kV cable between TransGrid s Beaconsfield West Substation to TransGrid s tunnel entrance in Sydney Park. Following thorough analysis during the route selection process, TransGrid is consulting with the community and stakeholders on a preferred route for the two new 330kV cables between the Rookwood Road Substation and Beaconsfield West Substation. To ensure a network option can be available in the expected timeframe (need date) of 2022, TransGrid is progressing with planning approvals for the network solution. Planning approvals from the Department of Planning and Environment are expected to take until These approvals involve a Preliminary Environmental Assessment (PEA) and Environmental Impact Statement (EIS) in accordance with provisions of the Environmental Planning and Assessment Act As we continue to develop the project, TransGrid is committed to providing accessible and transparent information, through two-way communication. Furthermore, we are enabling early and open engagement that will reasonably consider the views of all stakeholders and integrate opportunities for improvement wherever possible. As we are now in the early planning stages for this project, TransGrid has commenced consultation to ensure that that feedback can be considered in the development of the wider project development and implementation strategy. TransGrid are completely committed to working with communities and keeping them connected as the project develops kV cable route selection process The route selection process undertaken for the project considered potential options for establishing a new transmission supply connecting between the Rookwood Road Substation and the Beaconsfield West Substation. Initial analysis has been guided by advice and feedback resulting from ongoing consultation with relevant NSW and 4 / Powering Sydney s Future - TransGrid 330kV Cable Route Selection Process Summary

5 local government agencies, registered stakeholder groups as well as TransGrid s Advisory Council. This Advisory Council comprises of a variety of large energy users, renewable generators, energy consumer advocacy groups, energy user advocacy groups and large businesses. The route selection analysis has considered four key components of the project: > A total of thirty one options were considered to connect the Rookwood Road Substation and the Beaconsfield West Substation, including trenched, overhead or tunnel connection modes (or a combination). Eighteen options involved only a trenched connection mode, two options involved only a tunnel connection mode and eleven options involved a combination of trenched, overhead and tunnel modes > Options for exiting the Rookwood Road Substation with either a trenched, overhead or tunnel exit mode > Options for entering the Beaconsfield West Substation with either a trenched, overhead or tunnel entry mode > Options for connecting the Beaconsfield West Substation and the existing tunnel entrance in Sydney Park with either a trenched, overhead or tunnel connection mode. All of the thirty one options considered for connecting between Rookwood Road Substation and Beaconsfield West Substation fall into either one or a combination of the following categories: > Utilising the existing road corridors; > Co-location within existing rail corridors (notably Sydenham-Bankstown) where possible > Co-location with existing and planned infrastructure developments where possible > Co-location with the cycleway along the Cooks River > Tunnelling Options considered in the route selection study were evaluated based on a risk analysis approach developed consistent with AS/ NZ 31000:2009 Risk Management Principles and Guidelines (Standards Australia/ Standards New Zealand, 2009). Each option was evaluated in terms of likelihood and risk, categorised within six broad groups: > Environmental and land use implications during construction > Environmental and land use implications during operation > Engineering implications > Cost implications > Program implications > Potential community and stakeholder impact Upon undertaking a detailed route selection process, Table 1 shows a summary of the results for the risk assessment against the major corridors selected. Table 1 Summary of risk assessment Route corridor Summary of risk assessment Road corridor > Environmental and land use implications during construction: As a result of using the existing road network, the impact on environmental and land use implications during construction is low risk. > Environmental and land use implications during operation: As the 330kV cables will be buried and not utilising oil-filled cables, the environmental and land use implications during operation are low risk. TransGrid will install sufficient monitoring technology during construction that will reduce maintenance requirements. > Engineering implications: TransGrid has recently completed a project installing similar 330kV cables within the road network and hence have validity in engineering capabilities. Thus engineering implications are a low risk. 5 / Powering Sydney s Future - TransGrid 330kV Cable Route Selection Process Summary

6 > Cost implications: TransGrid has recently completed a project installing similar 330kV cables within a road network and hence have validity in cost estimates of delivery. Thus cost implications are a low risk. > Program implications: TransGrid has recently completed a project installing similar 330kV cables within the road network and hence have validity in construction time frames. Thus program implications are a low risk. > Potential community and stakeholder impact: High level consultation with affected stakeholders such as local councils and Roads and Maritime Services, indicate that significant disruption will be caused during construction. In addition, communities around the road corridor have already been affected by other infrastructure projects and are highly sensitive. The construction poses a high risk of impact on the community. Rail corridor where possible and where not using the existing road network Co-location with upcoming infrastructure where possible > Environmental and land use implications during construction: The environmental implications by co-locating within an existing rail corridor are low as the rail authorities already maintain a clear corridor. The land use implications by co-locating within an existing rail corridor are high risk for the rail authorities. Utilising the rail corridor could impact rail infrastructure, such as buried signalling cable and low voltage cable. These assets may have to be relocated which may cause disruption to the rail network. In addition, the Sydney Metro project will be utilising spare space within the rail corridor and could potentially result in insufficient space for installing, operating and maintaining TransGrid cables. > Environmental and land use implications during operation: As the 330kV cables will be buried and not utilising oil-filled cables, the environmental implications will be low risk. The land use implication may be high risk as installing the 330kV cables within the corridor would mean the rail authorities can no longer use that space in the future. > Engineering implications: The rail corridor uses significant electrical infrastructure both overhead and underground. Installing 330kV cables in parallel to such infrastructure poses significant engineering challenges and research indicates there are no precedents for such co-location. > Cost implications: Overcoming engineering challenges within the rail corridor and relocation of existing rail assets poses high risk cost implications. > Program implications: Disruption to the rail network during construction and Sydney Metro underway in a similar lead time together pose a high risk to the program. > Potential community and stakeholder impact: High level consultations with affected stakeholders such as Transport for New South Wales indicate challenges for other utilities to co-locate within the rail corridor. High level consultations with affected stakeholders such as local councils resulted in a preference for the utilisation of the rail corridor. Direct impact to residential community would be minimised through this option. > Environmental and land use implications during construction: The colocation opportunities are all within road networks both existing and future planned. As a result of using the road network, the impact on environmental and land use implications during construction is low risk. > Environmental and land use implications during operation: As the 330kV cables will be buried and not utilising oil-filled cables, the environmental and land use implications during operation are low risk. > Engineering implications: TransGrid has completed a recent project installing similar 330kV cables within a road network and hence have validity in engineering capabilities. Thus engineering implications are a low risk. > Cost implications: TransGrid has recently completed a project installing similar 330kV cables within a road network and have validity in cost estimates. Thus cost implications are a low risk. > Program implications: For the future planned road network, the current project timing generally aligns. However if timings for the planned road 6 / Powering Sydney s Future - TransGrid 330kV Cable Route Selection Process Summary

7 network changes it may cause high risk implications to the TransGrid program. Similarly, coordination and alignment in project schedules present significant risks to interested parties. > Potential community and stakeholder impact: High level consultations with affected stakeholders such as local councils indicate that (wherever possible) co-location with current and planned infrastructure developments will be preferred. Co-location along the Cooks River and utilising existing infrastructure such as the cycleway > Environmental and land use implications during construction: Existing infrastructure such as the Viva Energy/Mobil oil pipeline and requirements for physical separation from electricity cables, may cause environmental impact during construction. Disruption to recreational areas during the construction also causes high risk implications to land use. > Environmental and land use implications during operation: As the 330kV cables will be buried and not utilising oil-filled cables, the land use implications during operation are low risk. TransGrid will install sufficient monitoring technology during construction that will reduce maintenance requirements. A clearance requirement around the TransGrid cables especially for trees may also have environmental implications during operation. > Engineering implications: Due to existing land uses and oil pipeline located along this corridor, engineering implications pose a high risk. > Cost implications: The construction methodology will be no different to that undertaken for a road network. However there will be cost impacts relating to land acquisitions (non-residential). > Program implications: Land acquisitions pose a high risk to program implications. > Potential community and stakeholder impact: High level consultations with affected stakeholders such as local councils and The Cooks River Alliance has indicated that environmental impacts to one of the rare green corridors left within the inner city could be deemed unacceptable by the community. In addition, disruptions during construction to recreational areas may provide a negative response from the community. Hence community response is a high risk. Tunnelling > Environmental and land use implications during construction: Tunnelling has low risk implications for land use and the environment during construction. > Environmental and land use implications during operation: Operation of 330kV cables in tunnels has low risk implications for land use and the environment. > Engineering implications: The construction methodologies for tunnelling and installation of 330kV cables are complex and pose high risk implications for engineering. > Cost implications: The cost implications are extremely high risk for tunnelling due to significant high cost during construction and ongoing maintenance. > Program implications: Tunnelling has a low risk for program implications. > Potential community and stakeholder impact: High level feedback from similar projects (such as road tunnels) has shown the community response to be highly negative. This is mainly due to concerns with construction under existing properties and future risks of subsidence. However, it is generally considered that tunnelling options present a low risk of community impact due to reduced potential for disruption and affection during construction and ongoing operation of the asset. 7 / Powering Sydney s Future - TransGrid 330kV Cable Route Selection Process Summary

8 5. Preferred route The route selection process considered a total of thirty one options for establishing a new transmission supply connecting between Rookwood Road Substation and Beaconsfield West Substation. The weighted risk assessment of the 31 route options (described above) identified one preferred option for the new transmission supply connections: > A trenched transmission cable connection along existing road corridors (approximately 19.0 kilometres in length). The preferred route option involves underground transmission cables, predominantly in a trench, across the Bankstown, Strathfield, Canterbury, Ashfield, Marrickville and Sydney local government areas. The preferred route option principally follows road corridors, with the new cables not proposed to be located on private residential properties. Figure 1 Preferred route option - Rookwood Road Substation to Beaconsfield West Substation. To view an interactive and high definition map, please visit: 8 / Powering Sydney s Future - TransGrid 330kV Cable Route Selection Process Summary

9 6. Project timeline A summary of the current proposed project timeline is shown in Figure 4. Figure 4 Summary of the project timeline 7. Stakeholder consultation With a genuine desire to inform, TransGrid is committed to an engagement approach that is proactive and transparent. TransGrid s stakeholder engagement program is based on a continuing two-way conversation and is guided by the following principles: > Accessibility: identify key stakeholders and work with them throughout a project lifecycle. > Transparency: open and honest feedback will be sought and incorporated into planning processes. > Communication: proactively develop two-way communication channels, tailored to the needs and interests of stakeholders. > Inclusiveness: through early and open engagement we will integrate interests of stakeholders into our decision making. As part of TransGrid s efforts to ensure a reliable, affordable and sustainable electricity supply for the Inner Sydney area, TransGrid has been engaging with a wide range of stakeholders throughout the project lifecycle. More recently, in 2016 TransGrid undertook a range of engagement activities to consult early on and provide the opportunity for ongoing feedback to be included in proposed network and non-network options. These activities included ongoing face-to-face meetings with relevant NSW and local government agencies, industry specific forums as well as briefings with the TransGrid s Advisory Council. 9 / Powering Sydney s Future - TransGrid 330kV Cable Route Selection Process Summary

10 TransGrid will also undertake comprehensive engagement with the community. Outside of the RIT-T consultation process, early engagement with the community will be undertaken in correlation with a route selection process for a network solution. This will provide the opportunity for ongoing feedback to be considered in the planning process. 8. Have your say on Powering Sydney s Future TransGrid will continue to engage with members of the community and interested stakeholders throughout the project lifecycle and would like to hear about your thoughts, ideas and general feedback. If you have any questions or would like to provide feedback contact the team: > psf@transgrid.com.au > Free call Project Hotline Alternatively, for more information regarding the project or provide feedback by our dedicated project webpage, please visit: 10 / Powering Sydney s Future - TransGrid 330kV Cable Route Selection Process Summary