Powerlink and Ergon Energy have published a Project Specification Consultation Report (PSCR) to address the risks arising from the condition of key transmission network assets currently providing electricity services to Kamerunga, Cairns and the northern beaches area.
Kamerunga 132kV Substation
Kamerunga Substation, established in 1976, is a major injection point into the Ergon Energy distribution network. The operation of a 22kV distribution network around Kamerunga, Cairns and northern beaches is critical and necessary for the continued supply of electricity into this area.
The primary plant, transformers and secondary systems at Kamerunga Substation are nearing the end of their technical service lives with identified condition and obsolescence issues. The substation is also susceptible to major flooding events which could result in damage to equipment leading to loss of supply.
In August 2019, Powerlink published a Project Assessment Conclusions Report (PACR) to address the emerging condition risks at Kamerunga Substation. Based on information received subsequent to the conclusion of the consultation process, Powerlink identified a material change in circumstances due to the identification of an additional credible option not included in that Regulatory Investment Test for Transmission (RIT-T), and significant cost increases across all credible options assessed in the cost-benefit analysis undertaken for that RIT-T. This has resulted in a change to the preferred option and construction schedule recommended in the PACR, requiring reapplication of the RIT-T.
The identified need to maintain reliability of supply to Kamerunga assessed under the previous RIT-T consultation has been captured within the broader identified need of this RIT-T, as Kamerunga Substation is a key transmission network asset located in the Far North Queensland zone, providing electricity services to the Cairns and northern beaches area.
Woree to Kamerunga 132kV transmission line
The Woree to Kamerunga 132kV transmission line was first established in 1963. The line operates in an aggressive tropical environment and is nearing the end of its technical service life with the majority of structures exhibiting signs of degradation.
Powerlink has developed two credible network options to address the Kamerunga Substation and Woree to Kamerunga transmission line condition risks and compliance obligations by 2028.
- Option 1 – Rebuild of transmission line with Overhead/Underground Alignment and Greenfield Air Insulated Switchgear (AIS) (new 22kV switchboard) at Kamerunga Substation.
- Option 2 – Rebuild of transmission line with Underground Alignment and Greenfield AIS (new 22kV switchboard) at Kamerunga Substation
Indicative capital costs range between approximately $201m and $221m in 2023/24 prices.
Given the credible options identified include potential works by Ergon Energy that are over the minimum cost threshold (currently $6 million) for the Regulatory Investment Test for Distribution (RIT-D), this RIT-T is also being undertaken to discharge Ergon from its obligation to undertake a RIT-D.
Powerlink welcomes submissions from potential proponents who consider they may be able to offer a credible non-network option that is both economically and technically feasible to address the risks identified in the PSCR.
Submissions are due by close of business Wednesday, 26 March 2025.
In the context of engagement activities with customers and the general community, Powerlink has assessed this RIT-T project as ‘normal’ on the RIT-T stakeholder engagement matrix.
A copy of the PSCR is available below.