Basslink HVDC Interconnector. The Journey from Project to Operations

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1 Basslink HVDC Interconnector The Journey from Project to Operations

2 History Development & Approvals Development/Approvals Stage Engineering & Design Electrical Installation & Pre-commissioning 6 NEW Transformers Minimum 6 months Live Operations Period Basslink Development Board Selection Process Contracts re-negotiated, conditions precedent completed Joint Approvals Process Team Established 1 st Cable Campaign 2 nd Cable Campaign 3 rd Cable Campaign Commissioning Cable repaired & Stage tested Basslink is Operational National Grid wins Bid Milestone 1 NTP Milestone 2 Major Procurement Milestone 3 s Milestone 5 Sub. Complete Milestone 4 HVDC Cable Ex-Works Milestone 6 Ready for Energisation Milestone 7 Completion of Commissioning Milestone 8 Project Completion

3 Construction Contract Employers Obligations (Basslink) Obtain government approvals Procure freehold land and easements Place construction insurance Contractors Obligations (Siemens, Prysmian) Obtain all design data including surveys Entire design and design documentation Provision of all supplies and services for the works All construction works including access works Impacts on existing infrastructure (such as diversion of distribution lines) Reporting Records and operating manuals Training Site Safety Site security Care of the works Compliance with applicable laws

4 History - Construction Engineering & Design Electrical Installation & Pre-commissioning 6 NEW Transformers 1 st Cable Campaign 2 nd Cable Campaign 3 rd Cable Campaign Cable repaired & tested Milestone 1 Notice to Proceed Milestone 2 Major Procurement Milestone 3 s Milestone 5 Sub. Complete Milestone 4 HVDC Cable Ex-Works Milestone 6 Ready for Energisation

5 History Commissioning & Beyond Development/Approvals Stage Engineering & Design Electrical Installation & Pre-commissioning 6 NEW Transformers Minimum 6 months Live Operations Period Basslink Development Board Selection Process Contracts re-negotiated, conditions precedent completed Joint Approvals Process Team Established 1 st Cable Campaign 2 nd Cable Campaign 3 rd Cable Campaign Commissioning Cable repaired & Stage tested Basslink is Operational National Grid wins Bid Milestone 1 NTP Milestone 2 Major Procurement Milestone 3 s Milestone 5 Sub. Complete Milestone 4 HVDC Cable Ex-Works Milestone 6 Ready for Energisation Milestone 7 Completion of Commissioning Milestone 8 Project Completion

6 Principal Project s Transend (Tasmania) Hydro Tasmania System Protection Services Connection Use of System VENCorp (Victoria) Preliminary Basslink Pty Ltd Connection SPAusnet (Victoria) State of Tasmania Development EPC Contract SPS Contract Technical Services National Grid Company Tas-Vic Consortium OSI

7 Primary Operational Relationships

8 National Electricity Market Very Brief Summary Generators submit price bids Bids enter bid stack from lowest to highest NEMMCO balances supply and demand Generators are paid the highest bid price to match supply and demand NEMMCO dispatch power targets to generators The Basslink Interconnector is dispatched a power target the same as a generator

9 Basslink Operations

10 HVDC Project Suggestions 1. Clearly Define Operational Requirements 1. Decide on operations structure 2. Specify training requirements 3. Train operations personnel prior to commissioning 2. Clearly define HVDC functional specifications 1. Continuous rating 2. Interface to AC systems 3. Frequency control? 4. Reduced voltage starting? 3. Request demonstration of all supplied special tools

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