Grid Australia has published guidelines on how Australia’s electricity transmission networks will approach testing the cost effectiveness of their investments, helping contain future electricity price rises.
Announcing the release of Grid Australia’s RIT-T Handbook in Sydney, Grid Australia chairman Peter McIntyre said the guidelines would help ensure transmission networks were part of the solution in containing electricity price rises.
“Effective transmission investment helps reduce the cost of electricity, because it promotes competition between generators in a National Electricity Market,” Mr McIntyre said.
“Transmission is part of the solution to containing electricity price rises and Grid Australia’s guidelines will ensure a robust national approach to transmission investment by the electricity transmission networks,” he said.
The regulatory investment test for transmission (RIT-T) identifies transmission investments which maximise net economic benefits in the National Electricity Market (NEM) and, where applicable, meet the relevant jurisdictional or National Electricity Rules (NER) based reliability standards.
The purpose of the Grid Australia handbook is to provide additional ‘practitioner level’ guidance to those undertaking the RIT-T and facilitate enhanced transparency and consistency in the application of the RIT-T.
The guidelines are the result of 12 months of work by Grid Australia’s members and extensive collaboration with industry experts.
“Grid Australia in fulfilling its purpose in bringing a national transmission perspective to energy policy and infrastructure development,” Mr McIntyre said.
“Cost effective transmission investment is vital for energy security, to enable the connection of new renewable generation, and for the country’s economic prosperity.”
Grid Australia represents the owners of state transmission networks.