PSCR Meeting demand growth and reliability requirements in the Parkes area

19/12/2024
Market Network Service Provider
StageProject Assessment Conclusions Report
ConvenorAEMO NSP
Initiated19/12/2024
Accepting submissions?Yes
Submissions close26/03/2025

Transgrid has recently published a Project Specification Consultation Report (PSCR) for meeting demand growth and reliability requirements in the Parkes area.

Two large spot loads are proposed to connect in the Parkes area:

  • the Parkes SAP – this development is a business hub initiated by the NSW Government’s Regional Growth Development Corporation and will be located a few km west of Parkes. It consists of multiple smaller developments that will connect to the 11 kV distribution network. The Parkes SAP is a committed development. The site will require electricity supply from 2026/27, with demand expected to increase to approximately 30MW by 2034. The demand forecasts for the Parkes SAP indicate an ultimate long term capacity requirement of more than 100 MVA; and
  • Sunrise Energy Metals – this is a high-grade Nickel-Cobalt-Scandium project owned by Sunrise Energy Metals Ltd. This project is fully approved as a State Significant Development through the NSW Department of planning (DA374-11-00) and holds Major Project Status with the Federal Government’s Department of Industry, Science and Resources. The grid connection for the project is currently in the approvals stage. It is an anticipated development. The current load application for the Mine Stage 1 is for 40.3 MW 2, to be supplied at 132kV. The site is likely to require electricity supply from 2027/28.

The distribution network in the Parkes area is operated by Essential Energy. Essential Energy has recently indicated that, based on its latest demand forecasts for the Parkes region, its 66 kV network is unable to support an additional zone substation/s to facilitate the 11 kV reticulation for the Parkes SAP.

Essential Energy has also indicated that it cannot meet the expected demand requirements for Sunrise Energy Metals due to the proposed location of the mine and the expected size of the load. Sunrise Energy Metals may connect via developing a 132 kV feeder from the mine to Essential Energy’s Brolgan Rd 132/11 kV ZS, off Transgrid’s Parkes 132 kV/66 kV substation. In the absence of investment, there is a risk of unserved energy since the expected load from Parkes SAP and Sunrise Energy Metals will exceed network capacity in the region.
We have commenced this RIT-T to assess options which will enable us to meet our reliability requirements in the Parkes area in view of the significant increase in forecast demand. We consider this a ‘reliability corrective action’ under the RIT-T as the proposed investment is for the purpose of meeting externally imposed regulatory obligations and service standards, i.e., Schedule 5.1.4 of the National Electricity Rules (NER).

In the PSCR Transgrid presented one credible network option that would meet the identified need from a technical, commercial, and project delivery perspective. The optimal commercially and technically feasible option presented in this PSCR – Option 1 (Install a new 132 kV switchbay at Transgrid’s Parkes substation) – is the preferred option to meet the identified need.

The estimated capital cost of this option is approximately $9.61 million ($2024-25) +/- 25 per cent. Transgrid is the proponent of the proposed network project.

Transgrid welcomes written submissions on materials contained in this PSCR. Submissions are particularly sought on the credible options presented and from potential proponents of non-network options that could meet the technical requirements set out in this PSCR. Submissions are due on 26 March 2025.

In accordance with the requirements of the National Electricity Rules, a summary of the PSCR is made available on the AEMO website. A copy of the PSCR can be obtained from Transgrid’s website or by emailing regulatory.consultation@transgrid.com.au

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