TransGrid PACR: Maintaining compliance with performance standards applicable to Haymarket substation secondary systems

Market Network Service Provider, National Electricity Market
StageProject Assessment Conclusions Report
ConvenorAEMO NSP
Accepting submissions?No

TransGrid has recently published a Project Assessment Conclusions Report for maintaining compliance with performance standards applicable to Haymarket substation secondary systems. 

The secondary systems at Haymarket substation have reached a condition that reflects the end of serviceable life. As it is superseded by new technology at the manufacturer level and the existing technology becomes obsolete, spare parts become scarce and the ability of the any primary asset connected to the substation to reliably operate will be at risk. 

Along with other key substations including Rookwood Road and Beaconsfield, Haymarket substation forms part of TransGrid’s network that serves the Sydney Central Business District (CBD). It will continue to play a central role in supporting the growing need of Australia’s largest commercial district. 

Provision of redundant protection schemes to ensure the transmission system is adequately protected is a Network Performance Requirement under Schedule 5.1 of the National Electricity Rules (NER), therefore the condition issues affecting the secondary systems at Haymarket substation must be addressed. If the failure to provide functional secondary systems due to technology obsolescence is not addressed by a technically and commercially feasible credible option in sufficient time (by 2022/23), the likelihood of not recovering from secondary systems faults and not maintaining compliance with NER performance requirements will increase.

Continued deterioration of the secondary systems at Haymarket substation will accelerate the depletion of spares which will lead to a situation where TransGrid is unable to operate the secondary systems in accordance with clause 4.6.1 of the NER.  The proposed investment will enable TransGrid to continue to meet the standards for secondary systems availability set out in the NER, and to avoid the impacts of taking primary assets out of service. Consequently, it is considered a reliability corrective action under the RIT-T.

TransGrid published a Project Specification Consultation Report (PSCR) for maintaining compliance with performance standards applicable to Haymarket substation secondary systems in May 2019. No submissions were received in response to the PSCR during the consultation period which closed in August 2019.

TransGrid considered two credible options that would meet the identified need from a technological and project delivery perspective. 

Since the PSCR, TransGrid has:

  • updated the discount rates and inflation escalation (including capex)
  • included benefits associated with reductions in risk costs in the NPV analysis

None of these elements has made a material impact on the outcome. 

Option 1 — the combined on-site replacement of protection and control systems at Haymarket substation — remains the preferred option. 

The works for the preferred option are to be completed by 2022/23. The estimated capital cost of the proposed preferred option is $12.1 million +/- 25%. TransGrid is the proponent of the proposed network project.

In accordance with the requirements of the National Electricity Rules, a summary of the PACR is made available on the AEMO website. A copy of the PACR can be obtained from TransGrid’s website on the Regulatory Investment Tests page or by emailing

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