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As owner and operator of the National Grid, Transpower has the responsibility of ensuring that the transmission network can meet the changing electrical needs of the country. In today’s energy environment, this is a complex and challenging task – but also an exciting one. I have no doubt that with the skill and expertise of the people at Transpower, and the programmes of work already underway, we are well placed to meet this challenge. There are a number of measures that we use to gauge how we are performing: reliability – perhaps the most important as it relates to the number and length of unplanned power outages; availability – how often our assets are not available and whether that results in a power outage; and grid constraints – which elements of the grid are constrained – that is, running at maximum load, so that lower-cost generators behind the constraint, who would otherwise run, cannot. Last year, saw us missing a number of our targets on these fronts. Not really a big surprise given that demand is rising and there’s been little reinforcement over the last 10 years. Good news is that an extensive programme of investment is underway to address these legacy issues – including reinforcement, refurbishment, procurement of strategic spares and, importantly, up skilling our workforce – which will place us in a better position to reach our targets in the future. It won’t happen overnight, but over the next few years, we will see less unplanned outages, more availability of our assets and our customers should see fewer constraints on the network. Another challenge, although also an opportunity for us, is the changing technology in our industry. It’s difficult to know what transmission grids will look like in 15 to 20 years, but we’re confident that they will be different. Grids will be smarter, more automated, and we’ll be able to get more out of our assets as a result. Our interactivity with load will be transformed – in much the same way the ‘system operator’ interacts minute-by-minute today with generators. For consumers it will mean increased grid reliability and security, at a lower cost. We are planning for these changes now, despite not knowing exactly what they may look like, and are starting to adapt our thinking to embrace new and innovative technologies. Over the past year we have introduced two new major technology platforms – one of which positions our system operator as a world leader; that will allow more intelligent operation of the future transmission grid. The benefits include greater ability to monitor and operate grid equipment remotely, improved utilisation of existing transmission assets, better operation of the wider power system and, not least, greater demand side participation. Going forward, we need to continue to focus on systematic innovation and development so that we are well positioned to take advantage of new technologies as they develop. New technologies will help, but electricity won’t travel without wires, and assets will only operate reliably for so long, however clever we get at monitoring and running them. Therefore a build programme is also needed. The upgrade programmeWe have embarked on a significant investment programme with up to $5 billion committed over the next 10 years to upgrade the national grid. We have around 60 projects in various stages of development or construction and establishing the programmes of work required for this major upgrade will require intensive focus and effort over the next few years. Of this 60, there are four major upgrade projects which are vitally important to the security of the overall power system, and represent an investment of over $2 billion. This work programme will pose exacting safety and quality requirements. Ensuring a safe environment for our employees, contractors, and the public is of paramount importance. We have a goal of zero accidents or injuries and although we have improved our performance in recent years, we recognise the need to make further improvements. We are now implementing a major change programme in regard to safety to reduce our injury frequency and severity rates: my goal is to be a world leader in safety in transmission. We still have a little way to go but are working hard to get there. Good initiatives and new work programmes need great people to bring them alive. And, like any business, people will be the core of our continued success. Resourcing the small and large projects while maintaining our focus on both operating the grid and developing our technology platforms continues to be a huge challenge. In the face of worldwide demand for experienced transmission workers (which is really quite fierce), we are continually looking at new ways of recruiting staff, as well as ensuring we retain and build on the current expertise that we have already. There are a number of ways that we are doing this including: Development through our graduate training programme, which we have expanded this year to accept more applicants (including non-engineers); investing in our capability and performance in the field and working with our major maintenance partners to improve both our performances; and the development of a new trainee programme to address our ageing workforce. Finally, perhaps the most important focus we have is continuing to work in partnership with the community. We need to construct our projects as we intend to finish them – with fairness and respect for landowners, as well as for the wider communities that we impact. Being open about our plans and projects, and consulting with affected people and understanding and listening to their concerns, is critical, and is a key focus for the company over the next year, and beyond. Without their input and feedback and general support, it would be very difficult to maintain and build infrastructure in New Zealand. Not everybody will be happyWe have worked extremely hard over the last year at getting this right and I believe that we can achieve good relationships and partnerships with those who are affected by our works. Not everybody will be happy. They cannot and won’t be. The lines have to go somewhere. But at least people will know we have listened. Substantial headway has been made towards meeting our goals and objectives over the last few years, and I believe that the programmes of work now underway will stand New Zealand in good stead for the future. Although the ‘here and now’ initiatives are important, we must continue to look at the bigger picture so that we do not create a future where we are just doing ‘more of the same’. I look forward to the upcoming year and working with our stakeholders who are fundamental in helping us to achieve our goals and objectives for New Zealand’s transmission system.
Energy NZ Vol.4 No.1 Energy Perspectives 2010 |
The National Grid – the high voltage transmission network that connects towns and cities across the country – has served us well for many decades. However, as the demand for electricity has increased, the system has become more highly loaded and is now nearing its operating capacity. By Patrick Strange, chief executive of Transpower.