Threat to 140 MW of wind projects due to network capacity constraints

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Around 140 MW of planned wind power capacity in South Gippsland, Victoria, is under threat following an announcement by network operator TXU Networks, that project developers will have to bid for network capacity. There are more than 260 MW of new wind farm projects in the pipeline for the area, but TXU says the network can cope with no more than 120 MW. Upgrading the system -- a long term solution to the problem -- is being considered, but will be costly, TXU notes. With demand outweighing network capacity, the 120 MW of available transmission is being auctioned off. To reserve space on the wires for the output of their projects when built, companies must enter a competitive bidding process. There will be two categories for firm capacity or non-firm capacity. Offers for firm access will be considered before non-firm offers. The date for final submissions to the auction is the end of February.

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