AEMO awards contract to improve system security in Western Victoria REZ

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Image credit: AEMO

On behalf of the Victorian Government‘s Renewable Energy Zone (REZ) Development Plan (RDP), AEMO, in its capacity as Victorian Planner, has finished the tendering process to acquire non-network services in the Western Victoria Renewable Energy Zone (REZ).

Following a competitive process, a System Support Agreement (SSA) has been granted to Transmission Operations (Australia) 3 Pty Ltd (TOA3), a division of Australian Energy Operations Pty Ltd, to provide up to 600 megawatts (MW) of services to improve the power system and boost generation capacity in the Western Victoria region.

In a statement, AEMO said TOA3 would deliver services from the Ararat Terminal Station’s synchronous condenser customised solution. The project is scheduled to begin commercial operations in late 2025, with a 20-year service life.

A competitive tender process for expressions of interest began in August 2021. Shortlisted parties were asked to provide detailed submissions and participate in following talks with a tender review team once replies were evaluated.

Adertisement

TOA3 was selected as the prefered tenderer based on these interactions and input from the State on the Social Procurement and Local Jobs First tender responses.

Under the National Electricity (Victoria) Act 2005 (NEVA), Victorian Minister for Energy, Environment, and Climate Change Lily D’Ambrosio issued a Ministerial Order requiring AEMO to conduct procurement processes for three contestable projects for system strengthening and three sets of non-contestable minor network augmentations.

This includes purchasing specific off-network services in the South West, Western Victoria, and Murray River REZs.