Executive Summary
Endeavour Energy is a licenced Distribution Network Service Provider (DNSP) serving some of Australia’s largest and fastest growing regional economies.
Endeavour Energy is responsible for the safe, affordable and reliable supply of electricity to more than 1 million customers or 2.6 million people in households and businesses across Sydney’s Greater West, the Blue Mountains, Southern Highlands, Illawarra and the South Coast.
Due to rapid industry changes, we are transitioning from a traditional ‘poles and wires’ business to a customer-centred distribution system operator where energy flows in two directions and smart meters, batteries and solar generation enable customers to generate, store and sell electricity back into the grid as we move to a clean energy future.
Endeavour Energy operates within regulated and unregulated markets. It is subject to the National Electricity Law (NEL) and National Electricity Rules (NER) which regulate the National Electricity Market (NEM). Endeavour Energy is also subject to the statutory and other legal requirements applied to all businesses in NSW.
The distributor’s licence conditions, including the network Reliability and Performance Licence Conditions are imposed by the NSW Minister for Energy. The Independent Pricing and Regulatory Tribunal (IPART - Electricity) is responsible for administering licensing within the energy industry and monitoring compliance with licence requirements on request from the Minister of Energy. The Australian Energy Regulator (AER) ultimately determines Endeavour Energy’s network revenue and network service pricing within each regulatory control period.
This Distribution Annual Planning Report (DAPR) complies with the NER clause 5.13.2. It reflects the outcomes of the annual planning review of Endeavour Energy’s network. Information required for the DAPR is located within this document and the DAPR mapping portal available on https://dapr.endeavourenergy.com.au. The aim of the document and the portal is to inform network participants and stakeholder groups of the proposed development of Endeavour Energy’s network, including potential opportunities for non-network solutions and possible investments where the Regulatory Investment Test for Distribution (RIT-D) applies.
Endeavour Energy has adopted an Asset Owner-Asset Manager-Service Provider model to deliver its asset management strategy and achieve its corporate objectives. Distribution network strategy and plans are developed in accordance with the asset management philosophy to achieve the corporate objectives. They are directed and coordinated and through the operation of the Asset Management Committee and the Investment Management Committee.
This DAPR is based on Endeavour Energy’s planning processes in accordance with its asset management strategy. This planning supports Endeavour Energy’s broader corporate strategy to be amongst the best performing networks in Australia as measured by safety, engagement, customer and financial performance metrics.
Endeavour Energy recognises the significant role that customers and stakeholders play in shaping the network of tomorrow and we value their insights and feedback. Our Peak Customer and Stakeholder Committee, Regulatory Reference Group and Future Grid Reference Group played an important role in helping to inform the plans set out in this report and we thank them for their valuable contributions
Key features of the planning outcomes are:
- Continued strategic focus on asset renewal, prioritised and optimised on the basis of asset condition and network risk, and integrated with growth-related investment needs;
- Demand growth, primarily concentrated in North-West and South-West Sydney which are expected to accommodate over 480,000 new dwellings and land for employment for 1,000,000 new residents over 6 the next 25 to 30 years, for which Endeavour Energy is planning to provide up-stream supply infrastructure;
- Joint planning with TransGrid for the provision of supply for the proposed Western Sydney Aerotropolis at Badgerys Creek;
- Continued implementation of demand management strategies and Distributed Energy Resources (DER) integration to defer planned network augmentations where it is economically feasible and practicable to do so;
- Management of reliability performance levels with targeted reliability improvement works where justified to meet licence condition obligations;
- A portfolio of 15 network-need driven projects in the next five years that require the application of the RIT-D, including consideration of non-network solutions;
- A further 15 projects where the estimated constraint date is forecast within the next five to ten years that will likely require application of RIT-D based on our current assessment;
- The identification of 63 high-voltage distribution feeders that are currently at or above maximum planned loading level, that require monitoring, remediation through augmentation, load transfers or load reductions, or combination of responses; and
- Ongoing growth in the connection of embedded solar-photovoltaic (PV) energy generation and battery storage and the integration of these and other emerging end-use demand management technologies with Endeavour Energy’s network.
This DAPR provides the market with an understanding of the various investment programs and projects being undertaken by Endeavour Energy to fulfil its obligation as a licensed DNSP in the NEM. It provides a snapshot of the investment expected over the next five-year period. The details contained in this report will change over time as the consideration of new information in the planning process continues to inform planning outcomes in accordance with Endeavour Energy’s corporate objectives.