Eyre Peninsula Upgrade

South Australia’s Eyre Peninsula has the potential to experience high levels of economic growth and associated growth in electricity demand over the coming years. Some of this growth was anticipated when ElectraNet conducted the Regulatory Investment Test for Transmission (RIT-T) analysis of the recently completed Eyre Peninsula Link project and in the AER’s April 2023 Determination (“the Determination”) of ElectraNet’s revenue for the 2023-28 period. Both of those processes recognised the likelihood that electricity transmission capacity on the Eyre Peninsula would soon need to be upgraded to supply load growth.

Over the last 12 months, ElectraNet has been engaging closely with proponents of several potential load developments on the Eyre Peninsula. That engagement has led us to conclude that the anticipated growth in capacity will soon be required. We consider that network elements may soon become constraints on the development of new and existing loads on the Eyre Peninsula.

We are progressing a RIT-T process to assess options available to facilitate the connection of new load on the Eyre Peninsula to deliver a long run least cost solution that manages affordability, reliability, and timely delivery of transmission services for all customers.

The identified need to be addressed is to efficiently meet customer electricity demand growth beyond the existing capacity of the Eyre Peninsula transmission network connected to Davenport. ElectraNet considers this RIT-T to be a ‘reliability corrective action’ as defined by clause 5.10.2 of the National Electricity Rules (NER), as the objective is to meet the regulatory obligations and service standards contained in schedule 5.1 of the NER and with the applicable regulatory instrument of the Essential Services Commission of South Australia’s (ESCOSA) Electricity Transmission code (ETC).

The scope of network development required will depend on the size and location of new customer demand.

While no new customer load beyond the capacity of the existing network has been committed, we are progressing this RIT-T process to engage publicly on potential options for meeting projected load growth. This will enable more timely investment to meet customer load growth once this is committed.

Key considerations include connecting loads on the Eyre Peninsula sufficient to cause the overloading of the transformers at Cultana or the overloading of the transmission lines connecting Davenport to Cultana.

We have identified five credible options that are technically and economically feasible and meet the identified need. The location, timing and quantum of load that may connect will be assessed to determine the optimal timing of the development of these options.

We welcome written submissions on the information contained in this Project Assessment Draft Report (PADR) by 9 May, 2025. Submissions are sought on the options presented, any other credible options available to address the identified need, the classification of this identified need for reliability corrective action and the assessment of the materiality of market benefit categories.

We welcome especially submissions from potential customers planning to connect to the Eyre Peninsula that can identify the size of additional load that may connect and the timing of it. Evidence on the likelihood of the project going ahead will be very useful for our analysis. For example, demonstrating the key elements for a load to satisfy AEMO’s commitment criteria would be useful.

Submissions should be emailed to consultation@electranet.com.au.

In the subject field, please reference ‘Eyre Peninsula Upgrade’. Submissions will be published unless a proponent marks their submission (or part of it) as confidential at the time of the submission.

The Project Assessment Conclusion Report (PACR), which is the final stage of the RIT-T process, will include ElectraNet updated analysis on the options, on any issues arising from the consultations and a final determination on the proposed option. We expect to publish the PACR by March 2026.