Fleet Strategy - HVDC

HIGH VOLTAGE DIRECT CURRENT (HVDC)
Fleet Strategy
Document TP.FS 46.01 16/10/2013
HVDC FLEET STRATEGY Transpower New Zealand Limited 2013. All rights reserved.
HVDC Fleet Strategy TP.FS 46.01

Issue 1 October 2013
COPYRIGHT 2013 TR ANSPOW ER NEW ZEAL AND LIMITED . ALL RIGHTS RESERVED This document is protected by copyright vested in Transpower New Zealand Limited (Transpower). No part of the document may be reproduced or transmitted in any form by any means including, without limitation, electronic, photocopying, recording or otherwise, without the prior written permission of Transpower. No information embodied in the documents which is not already in the public domain shall be communicated in any manner whatsoever to any third party without the prior written consent of Transpower. Any breach of the above obligations may be restrained by legal proceedings seeking remedies including injunctions, damages and costs.

Table of Contents
EXECUTIVE SUMMARY ...................................................................................................................... 1 SUMMARY OF STRATEGIES .............................................................................................................. 4 1 1.1 1.2 1.3 1.4 1.5 2 2.1 2.2 2.3 3 3.1 3.2 3.3 3.4 3.5 4 4.1 4.2 4.3 4.4 4.5 4.6 4.7 INTRODUCTION ....................................................................................................................... 5 Purpose ................................................................................................................................. 5 Scope .................................................................................................................................... 5 Stakeholders ......................................................................................................................... 7 Strategic Alignment ............................................................................................................... 7 Document Structure .............................................................................................................. 8 ASSET FLEET .......................................................................................................................... 9 Asset Statistics ...................................................................................................................... 9 Asset Characteristics .......................................................................................................... 13 Asset Performance .............................................................................................................. 20 OBJECTIVES .......................................................................................................................... 25 Safety Objectives ................................................................................................................ 25 Service Performance ........................................................................................................... 25 Cost Performance ............................................................................................................... 26 New Zealand Communities ................................................................................................. 26 Asset Management Capability ............................................................................................ 27 STRATEGIES.......................................................................................................................... 29 Planning .............................................................................................................................. 29 Delivery ............................................................................................................................... 38 Operations ........................................................................................................................... 40 Maintenance ........................................................................................................................ 43 Disposal............................................................................................................................... 50 Asset Management Capability ............................................................................................ 50 Summary of RCP2 Fleet Strategies .................................................................................... 53

EXECUTIVE SUMMARY
Introduction The High Voltage Direct Current (HVDC) link provides a high-capacity connection between the North Island and South Island electricity systems, enabling the operation of an efficient national electricity market. We have recently completed a major upgrade of the HVDC link, with the commissioning of the Pole 3 converter stations at Benmore and Haywards. The HVDC inter-island link has achieved world-class levels of performance over the years since the original scheme was commissioned in 1965. Our asset management approach for the HVDC link seeks to achieve continued high levels of availability and reliability on a sustainable basis, and to achieve least whole-of-life cost. Asset fleet and condition assessment The HVDC converter stations include a diverse range of equipment, some of which is highly specialised. There are particular challenges in asset management of HVDC equipment, because of the small population of similar equipment in service (even including similar HVDC schemes worldwide). There is only a limited experience base on which to build a detailed understanding of potential failure modes and develop appropriate condition assessment and risk management strategies. Further, our customers for the HVDC transmission service require high levels of annual availability. We typically aim to limit scheduled outages for routine maintenance and condition assessment to 23 days each year for each pole of the HVDC link. The HVDC Pole 2 converter stations were commissioned in 1991 and use electrically triggered thyristor technology. The main circuit equipment in Pole 2 is generally in good condition and has considerable remaining life. However, some subsystems within the Pole 2 converter systems have reached the end of their expected lives, and replacements or other interventions are now required. One example is the original control and protection systems in Pole 2 that have recently been almost completely replaced, as part of the new Pole 3 project. Some assets within the Pole 2 converter stations undergo frequent mechanical switching as HVDC transfer varies. Asset management attention is focused on this frequently operated equipment, to minimise the risk of failure. A programme of special inspections and condition assessments is used to determine the need for major overhauls and replacements. The HVDC Pole 3 converter stations were commissioned in May 2013, to fully replace the mercury-arc valve converters of the original 1965 inter-island transmission scheme. The Pole 3 converter stations use light-triggered thyristor technology. Asset management approaches for the Pole 3 equipment will follow the manufacturers recommendations, and will be adapted with further operational experience. The HVDC connection between the North Island and the South Island relies on three HVDC submarine power cables across Cook Strait. The submarine cables were installed in 1991, together with new cable terminal stations where the cables connect to the overhead HVDC transmission line. The underwater environment in Cook Strait is harsh, and the cables are now more than 20 years old. Yet underwater surveys indicate that the cables are still in good condition and likely to remain usable beyond their original design life. The most significant
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risk to the submarine cables is damage caused by illegal fishing and anchoring in the Cook Strait Cable Protection Zone (CPZ). Strategies The level of capital expenditure (capex) required during RCP2 for the HVDC fleet is expected to be relatively low because of the good condition of the submarine cables and Pole 2 assets and the new condition of the Pole 3 assets. This fleet strategy aims to ensure that we maximise the remaining life of the assets, which is now likely to be greater than the original design life of the submarine cables and the Pole 2 equipment. The forecast capex is for some individual assets that require replacement or refurbishment because they have a shorter life expectancy than the rest of the Pole 2 system, based on their current condition, age and operation frequency. We will also make some investments to bring the older Pole 2 assets up to the same standard as the new Pole 3 equipment where practical and cost efficient, so that we can maximise the benefits of the Pole 3 project. We will complete Stage 2 of the Pole 3 project as part of the originally approved Pole 3 Major Capex Proposal (MCP). The remaining work involves improving voltage stability through the addition of filter banks and a static synchronous compensator (STATCOM). This will increase the HVDC capacity to 1,200 MW. Stage 2 is due to be commissioned by 2014. The Pole 2 valve base electronics (VBE) and thyristor control units (TCUs) are critical components of the Pole 2 control system. The main control and protection systems in Pole 2 have been replaced as part of the Pole 3 project, but the replacement of VBE and TCUs was not part of the scope of work. We have very limited spares for this equipment and there is a risk that failure rates will start to increase due to age-related deterioration. We plan to replace this equipment during the RCP2 period to ensure continued high levels of reliability. The Pole 2 filter bank circuit breakers operate frequently, as a result of changes in HVDC power transfer. Several of the Pole 2 filter bank circuit breakers are expected to reach their recommended maximum number of operations during RCP2. We plan to replace and refurbish filter bank circuit breakers before the risk of failure escalates. The Oteranga Bay Cable Station is located in an extremely harsh coastal environment. The roof and wall cladding of the building is significantly corroded, and the building is no longer weather-tight. We plan to re-clad the roof and walls of the cable station to protect the cable station equipment and ensure reliability. We will continue to monitor the Cook Strait submarine cables with a variety of approaches, including a marine patrol of the Cook Strait CPZ to deter and detect illegal fishing and anchoring. To ensure that we have reliable information about the condition of the submarine cables, we will continue with programmes of surveys by Remote Operated Vehicles (ROVs) and by divers. We are currently investigating alternative approaches to the maintenance of the submarine cables, to reduce the operating expenditure (opex) required. Failure of the Cook Strait submarine power cables is a low probability but high-impact risk. We will maintain contingency plans for undertaking repairs to submarine power cables, and ensure preparedness to respond promptly and effectively to any cable fault. Improvements We have recently made a number of improvements to the asset management of the HVDC assets.
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We have installed a Real Time Digital Simulator (RTDS) that will be used for supporting operations, and for post-event analysis. It will also be used as a risk management tool, for testing the effects of proposed changes to HVDC control system software or settings, before any such changes are implemented at site. We have established an in-house team of HVDC field engineers to help manage the long-term risks of retaining an appropriate level of highly specialised skills required for maintenance and support of the HVDC and power electronics assets. We have appointed an HVDC Manager, who has responsibility for overview of the asset management of the HVDC asset fleet.
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SUMMARY OF STRATEGIES
This section provides a high-level summary of the main asset management strategies and their costs during the RCP2 period (20152020) for the HVDC fleet. The three main strategies summarised below relate to capex.
Capital Expenditure
Replace Pole 2 Valve Base Electronics and Thyristor Control Units
RCP2 Cost
$7.6m
The VBE and TCUs are critical parts of the control system and are nearing the end of their useful lives. We have very limited spares for this equipment and failure rates are starting to increase due to age-related condition deterioration. Our strategy is to replace the Pole 2 VBE and TCU over RCP2, to improve long-term reliability. Over the RCP2 period, we plan to replace the VBE and TCU, together with the connecting fibre optic links, at an estimated cost of $7.6m.
Replace and Refurbish Pole 2 Filter Bank Circuit Breakers
RCP2 Cost
$3.2m
Several frequently operated Pole 2 filter bank circuit breakers are expected to surpass their recommended number of operations during RCP2. Our strategy is to replace and refurbish filter bank circuit breakers before the risk of failure escalates. The plan will involve replacing 5 filter bank circuit breakers and refurbishing 1 filter bank circuit breaker over RCP2 at an estimated cost of $3.2m.
Re-clad Oteranga Bay Cable Station
RCP2 Cost
$2.2m
The Oteranga Bay Cable Station is located in an extremely challenging coastal environment. The roof and wall cladding of the building is significantly corroded, allowing water to enter. Our strategy is to re-clad the roof and walls of the cable station with a design that is better suited to the environment. This will result in enhanced protection of cable station assets. Over the RCP2 period, we plan to re-clad the cable station roof at a cost of $1.2m and the exterior walls at a cost of $800,000.
Chapter 4 has further details on these strategies and a discussion of the remaining strategies.
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INTRODUCTION
Chapter 1 introduces the purpose, scope, stakeholders, and strategic alignment of the High Voltage Direct Current (HVDC) fleet strategy.
1.1
Purpose
We plan, build, maintain and operate New Zealands high-voltage electricity transmission network (Grid). This includes the HVDC assets, which provide a high-efficiency, highcapacity connection between the North Island and South Island electricity grids. The purpose of this fleet strategy document is to describe our approach to lifecycle management of the HVDC asset fleet. This includes a description of the asset fleet, objectives for future performance and strategies being adopted to achieve these objectives. The strategy sets the high-level direction for fleet asset management activities across the lifecycle of the asset fleet. These activities include Planning, Delivery, Operations, Maintenance, and Disposal. This document has been developed based on good practice guidance from internationally recognised sources, including BSI PAS 55:2008.
1.2
Scope
The New Zealand HVDC systems assets have key asset management differences to the AC system, which is why the assets in the HVDC system have their own fleet strategy. The scope of the fleet strategy includes the following HVDC asset categories: Converter Stations: converters, DC yard equipment, and AC switchyard equipment Electrode Stations: earthing electrodes, isolating switches, roof bushings and buildings Submarine Cables and Cable Stations: submarine cables, cable terminations, and buildings.
The HVDC system is a sophisticated system that requires complex controls to ensure it operates optimally and safely. This includes two reactive power control (RPC) systems, one at Benmore and one at Haywards. We also have a Real Time Digital Simulator (RTDS) and a valve base simulator for the HVDC system. This is located at Transpower House and simulates the real-time response of the power system to various scenarios to support maintenance and testing of HVDC controls. Given the extensive nature of the HVDC system with its large number of asset types, further information on the assets within each category is provided below. Converter Stations The valve halls at each converter station contain the primary equipment that enables the conversion between DC and AC. The two main types of equipment in the valve halls are: thyristors bushings.
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The converter stations include a diverse range of complex and special purpose secondary equipment, such as protection systems, control systems, water cooling systems, and auxiliary power supplies. The scope of this strategy document includes the converter valve hall buildings themselves and their building services.1 The converter stations also include DC and AC switchyards, which include a number of assets. The most important of these assets are: converter transformers circuit breakers harmonic filters buses disconnectors and earth switches instrument transformers smoothing reactors.
Much of the equipment in the HVDC converter stations are specialised unique designs that vary significantly from those used on the AC system, which is the reason they are considered under this strategy and asset portfolio and not under the relevant AC asset fleet strategy. The converter transformers are particularly unique assets, with designs that are much more complex and fundamentally different from our AC power transformers. Electrode Stations There are two electrode stations, with one set of electrodes being inland and the other set underwater. The electrode stations include: roof bushings electrode arms isolating switches cabling.
Submarine Cables and Cable Stations Three HVDC submarine cables cross Cook Strait to connect the North Island with the South Island. There are two cable terminal stations, where the HVDC submarine cables are connected to overhead lines. Exclusions The HVDC overhead transmission lines are excluded from this strategy as they are covered within the Conductors and Insulators fleet strategy. Similarly, the management of the HVDC towers is described in the Towers and Poles fleet strategy. The Haywards synchronous condensers, which support the operation of the HVDC link, are included in the Reactive Power Fleet Strategy.
At the time of writing, we are considering a transfer of responsibility for several aspects of HVDC buildings and grounds management from the HVDC maintenance service providers to the Buildings and Grounds Facilities Management service provider.
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1.3
Stakeholders
The HVDC system provides a high-efficiency and high-capacity connection between the North Island and South Island electricity grids, enabling a national electricity market. Correct operation and maintenance of the HVDC asset fleet is essential for transporting electricity from areas of high supply to areas of high demand, thus reducing disparity between the electricity prices in different regions of New Zealand. Key stakeholders include: Transpower Groups: Grid Development, Performance and Projects regulatory bodies: Commerce Commission and Electricity Authority generators service providers landowners customers: including distribution network businesses fishing and shipping industry.
1.4
Strategic Alignment
A good asset management system shows clear hierarchical connectivity or line of sight between the high-level organisation policy and strategic plan, and the daily activities of managing the assets. This document forms part of that connectivity by setting out the strategy for managing the HVDC asset fleet to deliver our overall Asset Management Strategy. This fleet strategy directly informs the HVDC Asset Management Plan, which is provided separately. The hierarchical connectivity is represented graphically in Figure 1. It indicates where the fleet strategy and plan fit within our asset management system.
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Corporate Objectives & Strategy
Asset Management Policy
Asset Management Strategy
Lifecycle Strategies Planning Delivery Operations Maintenance Disposal
HVDC Strategy
HVDC Plan
Figure 1: The HVDC Fleet Strategy within the Asset Management Hierarchy
1.5
Document Structure
The rest of this document is structured as follows. Chapter 2 provides an overview of the HVDC asset fleet including fleet statistics, characteristics and their performance. Chapter 3 sets out asset management related objectives for the HVDC asset fleet. These objectives have been aligned with the corporate and asset management policies, and with high-lever asset management objectives and targets. Chapter 4 sets out the fleet specific strategies for the management of the HVDC fleet. These strategies provide medium-term to long-term guidance and direction for asset management decisions and will support the achievement of the objectives in chapter 3.
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ASSET FLEET
Chapter 2 provides a high-level description of the HVDC asset fleet, including: Asset statistics: including population, diversity, age profile and spares Asset characteristics: including safety and environmental considerations, asset criticality, asset condition, maintenance requirements and interaction with other assets. Asset performance: including reliability, safety and environmental Risks and issues.
2.1
Asset Statistics
This section outlines the HVDC asset fleet population, along with their diversity and age profiles.
2.1.1 Overview of Asset Fleet

The HVDC system is an important part of New Zealands electricity transmission system. It connects the North Island with the South Island via submarine cables. The HVDC system has a high capacity and low losses due to its high voltage and DC configuration (HVDC is only cost effective for long distance point-to-point transmission). The HVDC system runs from Benmore Station in the Waitaki Valley (South Island) to the Haywards station in the Hutt Valley (North Island). The system includes the HVDC Cook Strait submarine power cables connecting the North Island with the South Island, overhead HVDC transmission lines in both islands, and the Benmore and Haywards converter stations, where power is converted between AC and DC. There are also two electrode stations which provide an earth return system. Cable stations are located at Fighting Bay and Oteranga Bay where the HVDC overhead line conductors are connected to the Cook Strait submarine cables. The original Pole 1 converter station equipment, first commissioned in 1965, was replaced in 2013 with the new Pole 3 equipment (although the use of Pole 1 equipment was restricted from 2007, and it was fully decommissioned in 2012). The Pole 3 project has brought the fleet up to a modern standard.
2.1.2 Asset Population

Table 1 shows the population of the current asset fleet as of June 2013.
Station
Converter Stations Electrode Stations Cable Stations Submarine Cables
Population
4 2 2 3
Comment
2 at Benmore and 2 at Haywards 1 at Bog Roy and 1 at Te Hikowhenua 1 at Fighting Bay and 1 at Oteranga Bay 38 km per submarine cable
Table 1: HVDC Asset Fleet
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2.1.3 Fleet Diversity

Fleet diversity is a significant issue for the management of the HVDC fleet given the small number of each asset type within the fleet. The small numbers of individual types of equipment mean that there is limited operational experience on which to base assessments of condition and risk. Further, the unusual characteristics of many of these items of equipment require us to consider a diverse range of asset management risks and issues in managing the system as a whole. In some cases, the worldwide population of identical equipment is very small. This makes the retention of skills important as well as maintaining relationships with suppliers and service providers, including specialised overseas service providers. Converter stations The four converter stations are of the same basic type, that is, Line Commutated Converter (LCC). However, there are significant differences in the technology used in Pole 2 and Pole 3. For example, they have different thyristor technology, which are also from different manufacturers. The differences in technology have some benefits and some disadvantages. One benefit is that the technology reduces the likelihood of simultaneous pole failure on both poles from a common cause. The maintenance tasks for the converter stations are the same in a general sense, but the specific procedures for the tasks differ between the two poles, and different spares are required. For example, Pole 3 uses light triggered thyristors, whereas Pole 2 uses electrically triggered thyristors, so separate spares must be kept. There is only one HVDC equipment supplier worldwide that supplies light triggered thyristors. As part of the Pole 3 project, the Pole 2 control system was replaced with a system identical to that of Pole 3 so the control systems would be fully compatible. The majority of assets in the HVDC system require a unique design with different specifications to the assets on the AC system. For example, HVDC transformers and filter bank circuit breakers are very different to those in the AC system. Electrode and cable stations Diversity is not a significant issue for the majority of the assets at the electrode and cable stations. However, diversity is relevant to the cable station roof bushings. Roof bushings can be damaged by extreme weather, so maintenance and emergency replacement may be required. Using standard designs for all four roof bushings has made such activities easier. Submarine cables and cable stations Historically, submarine cables were impacted by diversity given that the cable fleet was procured in tranches over time and used differing technology. However the three cables that are now in service are identical in design and practice, even though they were produced by two different manufacturers. Table 2 shows the types of submarine cable in the fleet.
Cables
HVDC Cables 46
Type
Oil impregnated paper
Comment
Identical designs; two different manufacturers.
Table 2: Diversity of the Submarine Cable Fleet
We only need to carry one type of spare cable because the three cables in service have the same design.
HVDC FLEET STRATEGY Transpower New Zealand Limited 2013. All rights reserved. Page 10 of 54

2.1.4 Age Profile

The original HVDC link was commissioned in 1965 and there was a substantial HVDC upgrade project in 1991, when the Pole 2 converter stations were commissioned and the three currently operating HVDC submarine power cables were installed. This upgrade process has continued with the recent replacement and refurbishment of some Pole 2 HVDC assets. As discussed in subsection 2.1.1, new converter stations, called Pole 3, replaced the decommissioned Pole 1 converter stations in 2012/13. Converter stations It is worth noting that life expectancy as shown in Table 3 is the nominal life established for fixed asset accounting purposes. It represents the typical average life expected from a type of equipment before it is no longer fit to remain in service. For example, the original life given to the Pole 2 primary equipment was 30 years for accounting purposes, but with further experience with the assets we now anticipate the Pole 2 primary equipment to last much longer. The nominal life expectancy is a generalisation across the primary equipment, but the life expectancies of different components within the converter stations differ markedly.
Station
Pole 2 converter station (Haywards) Pole 2 converter station (Benmore) Pole 3 converter station (Haywards) Pole 3 converter station (Benmore)
Installed
1991 1991 2012 2012
Nominal Life Expectancy

30 years 30 years 40 years 40 years
Table 3: HVDC Stations Age
Within each HVDC station, the component assets will have varying ages as components have been refurbished, replaced or enhanced over time. Electrode stations The electrode stations at Te Hikowhenua and Bog Roy were installed in 1965 when the HVDC system was originally installed. Both stations were extended between 1989 and 1993 to significantly increase their current rating. The various components of the electrode stations continue to be maintained, refurbished or replaced as required to maintain the required condition and function of the stations. In particular, there has been an ongoing programme of total replacement of the buried electrode arms of the Bog Roy land electrode station. Cables and cable stations The three HVDC submarine cables were installed between 1990 and 1991. The two cable stations (at Oteranga Bay and Fighting Bay) were initially built in 1965, and new cable terminal buildings added in 1991. Their nominal life expectancy is 30 years, from 1991. Life expectancy is the nominal life established for fixed asset accounting purposes. It represents the typical average life that is expected from a type of equipment before it is no longer fit to remain in service. Yet some assets may be useful for much longer. The average age of the in-service fleet is approximately 22 years as of June 2013, with details of each cable shown in Table 4.

Cable
Cable 4 Cable 5 Cable 6
Installation
1991 1991 1991
Nominal Life Expectancy

35 years 35 years 35 years
Table 4: Age Profile of Submarine Cables
2.1.5 Spares
We have ample spares for the Pole 2 primary equipment, and a large amount of spares for Pole 3. The spares are predominantly stored at Bunnythorpe and Addington warehouses along with storage at the Haywards and Benmore sites. The total number of spares stored for the HVDC systems is much too large to include in this document and cannot be easily summarised because of the different types of assets required. Subsection 4.1.2 provides information on new spares required to be purchased during RCP2. Converter stations A very small amount of the HVDC station equipment is compatible with assets on the AC system, so specialised spares are mostly required. Table 5 shows some of the most important spares currently kept for the converter stations.
Asset
Smoothing reactor
Number
2
Status
New as of 1991, can be used as spare for Pole 2 or Pole 3, although one of the spares has been damaged. Spares are held for filter bank circuit breakers, transformer circuit breakers, DC circuit breakers, and AC circuit breakers (for Pole 2 and Pole 3). Capacitor cans are specialised and not available off the shelf, so we have a number of spares for the various types used in the HVDC system.
Circuit breakers
Multiple spares
Capacitor cans
Multiple spares
Table 5: Examples of converter station spares
One of the spare smoothing reactors has been damaged and it is likely that it is uneconomic to repair. We intend to replace the damaged reactor within RCP1. Electrode stations We hold approximately 25m3 of coking coal in the event that the coking coal surrounding the electrodes is eroded away due to electrochemical reaction. The electrochemical erosion mainly occurs during mono-pole operation of the HVDC link at Bog Roy electrode station. Specialised low sulphur coal is required to minimise the corrosion of the electrodes, and this is difficult to procure at short notice. In addition, as the suppliers mostly supply large amounts to the steel-making industry, their distribution systems are not set up for small customers like Transpower. We recycle the electrode arm materials where possible, and retain one spare electrode arm at all times. As other electrode station equipment such as cables, roof bushings, switches, resistors and capacitors are readily available from suppliers, spares holdings are not required.
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Submarine cables and cable stations We hold a total of 3.6 km of HVDC submarine cable as spares at the Miramar cable store (one 2.4 km length and one 1.2 km length). The usefulness of these spares for repair of a cable fault in deep water is dependent on the ability to quickly cap a damaged cable. To limit the requirement for spare cable, it is essential to act promptly and prevent water ingress further than 1.2 km in both directions from the fault. For details of the contingency planning for submarine cable repairs, see subsection 4.3.4. There are two spares available for the critically important roof bushings at each Cable Station. There are four roof bushings in service (two at each cable station). They are all the same sulphur hexafluoride (SF6) pressurised design. They are all interchangeable, and three of the four current spares can be used to replace any of the four roof bushings, while the other spare can only be used for Pole 2. We believe that only three spares are necessary, so one of these spares will be used to replace an Oteranga Bay roof bushing during RCP2 when it reaches the end of its useful life.
2.2
Asset Characteristics
The HVDC asset fleet can be characterised according to: safety and environmental considerations asset criticality asset condition maintenance requirements emerging technologies interaction with other assets.
These characteristics and the associated risks are discussed in the following subsections.
2.2.1 Safety and Environmental Considerations

Safety and environmental considerations are important for asset management as they can require costly mitigation if not considered early in asset management planning. The most significant safety and environmental considerations for the HVDC asset fleet are: Converter valve halls work at heights: maintenance and inspection of the thyristor valves and other equipment in the valve halls requires work at considerable heights. Each valve hall is equipped with an elevating work platform to enable safe access for work at height. Converter station fire risk: Converter station explosions/fires have occurred overseas and are theoretically possible in the valve halls. One of the risk mitigations is to provide a water deluge system. It is proposed that the fire water supply systems at Haywards and Benmore substations will be upgraded during RCP2 (see subsection 4.1.2). High land and marine voltage gradients at shore electrode station: Marine voltage gradients, caused by erosion of land electrodes and material build-up on sea electrodes, can potentially affect marine life in the vicinity of the shore electrode station. However, the design of the Te Hikowhenua shore electrode is such that the voltage gradient is very low (less than 7 V/m).
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Generation of chlorine gas at shore electrode station: During periods of HVDC operation when the electrodes at Te Hikowhenua act as an anode, chlorine gas is generated in the electrode pits. Service providers working in the pits wear gas monitors and allow time for any chlorine gas to dissipate after opening the lids. Metal corrosion at land electrode station: A particular problem that one landowner near the Bog Roy electrode station experiences is accelerated corrosion of metal earthed assets, such as fences and sheds. We actively work with that landowner to mitigate the effects.
2.2.2 Asset Criticality

Asset management is adapted to recognise the differing levels of criticality to mitigate the risk of failures at critical sites and corridors and to potentially reduce expenditure on assets that are less critical. We have established a framework for assigning Asset Criticality for transmission assets, which classifies the assets as high, medium, or low criticality. The asset criticality framework is at an early stage of development. At this stage we have assigned all assets within the HVDC fleet as low criticality because a failure of the HVDC system will not usually result in interruptions for customers. Yet we recognise that the HVDC system is a special case where very rare failures can lead to widespread under-frequency load shedding, and less severe failures can result in a substantial change in electricity prices. A failure of any part of the HVDC system is generally equally important as it will result in the failure of a pole and a steep reduction in the capacity of the link. Yet some assets have redundancy built in, such as the control systems and the multiple filter banks. Other essential assets have unit spares, such as the converter transformers, available. The neutral earth circuit is particularly critical to HVDC reliability, because it is common to both poles, and its failure could result in an outage of both HVDC poles. We take these factors into consideration in the planning phase of the asset management lifecycle for the HVDC fleet. There are scenarios in which the relative criticality of the HVDC link could rise. For example, if a large amount of generating capacity in the North Island failed (such as the Huntly power station), the HVDC link could become essential for maintaining electricity supply in the North Island.2
2.2.3 Asset Condition

The following discussion outlines the condition of the HVDC asset fleet as at 30 June 2013. Converter stations The Pole 3 Converter Stations were constructed between 2011 and 2013 and are therefore in excellent condition. The outages and site access required by the Pole 3 project provided an opportunity to replace Pole 2 equipment that was nearing the end of its life. So the individual assets at the Pole 2 converter stations are generally in good condition and the majority of the main equipment items should achieve their expected design life of 30 years. Further life-extending refurbishments are possible on some of these items.
There is currently sufficient generating capacity for the North Island within the North Island, but the HVDC link is employed to utilise generation from the South Island with a much lower marginal cost. This generally involves hydro and wind generation compared with thermal generation in the North Island.
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Issue 1 October 2013 Pole 2 Thyristor valve water cooling system
At the time of original commissioning in 1991, it was recognised that the design of the Pole 2 thyristor valves creates a flow of a small electrolytic current in the cooling water pipes of the valve cooling system. This electrolytic current causes corrosion of the stainless steel couplings in the valve cooling system. These couplings are critically important components that distribute cooling water to the thyristor valve layers. In the early 1990s, corrosion in similar components in another HVDC thyristor valve was identified as the probable cause of cooling water leakage, flashover and failure of the complete thyristor valve. Since commissioning Pole 2 in 1991, we have monitored corrosion rates annually by sampling 6 out of 194 couplings at each converter station. The water treatment plant is critical to the thyristor valve cooling systems and the number of instrumentation faults has increased. There are also other aspects of the water cooling system that are degrading to a condition that will require replacement and/or refurbishment over RCP2 (see subsection 4.1.2 for our strategy to respond to these issues).
Pole 2 converter transformers
The converter transformers are in a good condition, as expected for their age. Yet the condition of some components, such as the diverter switches, is deteriorating. The condition of the tap changers may also be deteriorating, although reliable assessment will require the detailed evaluation that we have planned for the RCP2 period (see subsection 4.4.3). The demands of the electricity market require frequent changes in HVDC power transfer. These changes require frequent diverter switches of the converter transformers. There are approximately 17,000 diverter switch operations annually on each of the six in-service converter transformers. The diverter switches operate in oil and the oil quality deteriorates slightly with each operation. Major diverter switch refurbishments are required at approximately every 450,000 operations. The Pole 2 converter transformer diverter switches have approximately 350,000 operations and are due for refurbishment during the RCP2 period. The condition of the transformer oil is very important to the performance of the transformers and for maximising their useful lives. It is also an important consideration because of the scale each converter transformer bank contains 240,000 litres of oil. The condition of the transformer oil was recently assessed, showing that it is in very good condition. It is clear, of a normal colour, has low moisture levels, is not acidic, and shows no signs of sludge. Even so, the dielectric breakdown voltage is becoming lower than ideal. We expect that the condition of the oil will remain reasonable through RCP2, although we will continue to monitor it to identify if any filtering of the oil is required.
Pole 2 filter bank circuit breakers
Frequent changes of HVDC power transfer also require frequent switching of the Pole 2 filter bank circuit breakers. There are 10 circuit breakers and they operate between 150 and 750 times each year. The original circuit breakers had design lives of 2,000 operations or 35 years in service. Four of the original circuit breakers were replaced (two in 2005 and two in 2012) with 10,000 operation breakers. Other circuit breakers were refurbished to extend their lives to cover the next 2,000 operations. As of March 2013, of the 10 circuit breakers four have less than half of their life expectancy operations remaining while the other six have most of their maximum operations remaining. A number of the circuit breakers are expected to reach
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their maximum number of operations during RCP2, and their replacement and refurbishment is discussed in subsection 4.1.2.
Pole 2 Reactors
The reactors in the HVDC Pole 2 system are all air-cored. They were commissioned in 1991 and are in good condition. Electrode stations The condition deterioration of the electrodes depends on the cumulative amount of electrode current passed through them over time. When the HVDC link is in balanced current operation, the electrode current is very small and there is only very slow degradation of the electrodes. During unbalanced operation, and particularly during monopole operations, there can be significant currents and rapid degradation.
Bog Roy electrode station
The Bog Roy electrode generally operates as an anode during current flow because the HVDC flow is usually northwards. During anode operation, electrolytic action erodes the steel rods buried in the ground that make up its electrode arms. There has been significant erosion and breakage of the electrode arms. The eroded arms have to be replaced and it is essential to monitor the electrode condition to determine their priority for replacement. The land electrode erosion rate at Bog Roy during mono-pole operation is 15 to 18 times higher than during balanced operation. After Pole 1 was decommissioned, and prior to the commissioning of Pole 3, the HVDC link was operating in mono-pole operation for an extended period. This led to significantly increased rate of deterioration of the electrodes, involving more frequent maintenance and progressive replacement of the buried electrode arms. The strategy for further refurbishment of the Bog Roy electrode arms is set out in subsection 4.1.2.
Te Hikowhenua electrode station
The Te Hikowhenua land electrode provides a return path to earth for DC current when only one HVDC pole is operating or when current flow between the two poles is unbalanced. The electrode operated as a cathode for an extended period following the decommissioning of Pole 1, when the HVDC system was in a mono-pole configuration and only Pole 2 was operating. The long periods of operation as a cathode led to the build-up of a thick layer of magnesium and calcium hydroxide on the 42 four metre-long high silicon chromium iron electrodes that are buried in the beach. This build-up of deposits degraded the electrode performance, and required regular maintenance. All the sea electrodes were replaced in 2007, so they are (as of 30 June 2013) in good condition aside from the continued accumulation of magnesium and calcium hydroxide during any periods of operation as a cathode. Following the commissioning of Pole 3 this will no longer be such a significant issue. Cables and cable stations
Oteranga Bay cable station
The HVDC cable station at Oteranga Bay faces severe environmental conditions, with regular gale-force and storm-force winds. In storm conditions, heavy salt deposition occurs. This

location rates as one of the most demanding operational HVDC sites worldwide in terms of environmental conditions, and cannot be directly simulated by any HVDC electrical equipment tests. The high wind speed and constant wind-borne salt pollution significantly reduces the life of the roof and cladding of the cable station buildings, and places high stresses on the HVDC roof bushings. The extreme environmental conditions have led to severe corrosion of the exterior walls and roof cladding of the cable station building, particularly around the edge of the building, and the building is no longer weather-tight. This is a particular issue during high winds. Water is also entering the building due to the failure of corroded flashing, which consists of thinner material than the main roofing material. The strategy for the roof and cladding of the Oteranga Bay building is set out in subsection 4.1.2. The Oteranga Bay Pole 2 350 kV roof bushings have previously been replaced at approximately 4-year intervals because of the harsh environment. The replacements have included several different types of bushing as we have attempted to find a design that suits the environment. The latest roof bushing is a composite bushing designed to withstand wind speed up to 300 km/h and has improved material properties. It has been in service since February 2006. The roof bushings require regular extensive cleaning (annually and after large storms) to maintain their hydrophobicity, as there have been several incidents of arcing due to salt deposition in the past.
Fighting Bay cable station
The Fighting Bay cable terminal station has a much less severe climate than the Oteranga Bay site, and consequently there are less stresses on the insulation of the roof bushings. Both of the roof bushings have recently been replaced with polymer bushings so are in good condition. The building cladding is currently in good condition and does not require any refurbishment or replacement in the foreseeable future.
Submarine cables
Surveys using an ROV show that the three power cables are in good condition and generally well supported by the seabed. Due to the nature of the marine environment, corrosion of areas of exposed armouring on the cables is expected, with cathodic protection needed on the cables. Yet the ROV surveys and diving inspections have shown virtually no corrosion of the armouring to date. No further natural cathodic protection investigations are planned, and neither is any further prevention action planned at this stage because the evidence shows that, at present, corrosion does not appear to be a significant issue. Currently, cables 4 and 5 are undamaged and in good condition while cable 6 has had one fault repair undertaken.
2.2.4 Maintenance Requirements

This subsection describes the maintenance requirements of the HVDC asset fleet, including the underlying drivers and rationale. These requirements have informed the maintenance strategies discussed in section 4.4. This subsection also sets out a high-level overview of historic maintenance expenditure for these activities. The most common types of maintenance carried out on these assets are: preventive maintenance, including: line patrols and condition assessments
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servicing
corrective maintenance, including: fault response repairs
maintenance projects.
Maintenance projects are programmes of works (essentially made up of small projects) used to address repetitive issues identified through preventive and corrective maintenance. The Maintenance Lifecycle Strategy provides further details on our approach to the above maintenance works, and the specific maintenance requirements are included in the relevant service specification documents. Preventive maintenance The following sections discuss the preventive maintenance works on each major asset type.
Converter stations
Preventive maintenance of the converter station assets is planned on a regular basis, with the frequency dependent on the type and known condition of the asset. We schedule an annual maintenance outage in summer when demand for inter-island HVDC transfer is relatively low. The majority of maintenance works are carried out then. Regular condition assessments undertaken for the converter station assets may include: periodic visual inspections thermographic checks out-of-service diagnostic inspections transformer dissolved gas analysis (DGA) continuous monitoring of the performance of the HVDC cooling systems via the valve cooling control systems thyristor diagnostic inspection in line with manufacturer requirements frequent inspections of filter bank circuit breakers because of the high frequency of switching required.
Electrode stations
The Te Hikowhenua electrode station has undergone 3-monthly lifting inspections of the 2 pilot electrodes and 6-monthly lifting and cleaning of salt deposits on all electrodes while the system has been operated as mono-pole. With the operation of Pole 3 and return to bipolar operation, cleaning will only be carried out as required.
Cable stations
Preventive maintenance of the cable terminal stations is usually planned around annual shutdowns. Regular condition assessments undertaken on the roof bushings include: visual and UV camera inspection monitoring of corrosion in the sealing and central flange area
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hydrophobicity testing monitoring of internal bushing gas pressure and top-up intervals bushing gas analysis.
Roof bushings are also regularly cleaned to maintain hydrophobicity at a required level.
Submarine cables
Maintenance of submarine cables is complicated by the marine environment, requiring specialised equipment and techniques such as the ROV and divers. The submarine cables can be severely damaged by contact with fishing trawling devices or ship anchors. So preventive maintenance of the submarine cables includes regular patrolling of the area by vessel and helicopter to identify and deter ships (particularly trawlers) from operating illegally in the vicinity of the submarine cables. The marine patrol enforces the law prohibiting fishing and anchoring within the CPZ and educates ship operators in the area on CPZ law. The Ministry of Transport undertakes prosecutions for illegal fishing activity in the CPZ, based on evidence provided by the patrol vessel. One third of each cable is condition assessed each year using an ROV and diver (so every cable is assessed in any 3-year period). This has been dependent on the weather and the availability of resources. At times, condition assessments have been delayed when resources have been diverted to repairs to the HVDC or fibre optic cables. Also, there is a need to move sandbags and other protective equipment every 2 to3 years because the seabed conditions change over time. An electrical cable test is undertaken every 10 years, with the last one being carried out in 2011. Corrective maintenance We carry out a wide range of corrective maintenance due to the diverse types of assets included in the HVDC fleet. Corrective work ranges from the relatively simple replacement of failed assets, such as capacitor cans, through to major repairs and replacement of complex assets, such as the converter transformers and submarine cables. In some cases, corrective work requires the involvement of overseas technicians and experts, particularly those from the original equipment manufacturers. One of the largest and most complex cases of corrective maintenance is submarine cable repair. In 2005 we repaired a submarine cable fault in shallow water in Oteranga Bay. This was a large and complicated procedure supported by overseas expertise, and required maintenance support equipment to be custom-built for the procedure, including the retrofit of a barge. The repair of a cable fault in deep water would be more difficult and complicated, requiring specialist vessels and equipment from overseas. It is important to quickly cut and cap the cable in the event of a cable fault, to prevent excessive water ingress. In deep water, the water ingress could be relatively rapid, reaching a length beyond the length of spare cable. This would necessitate purchasing replacement cable. Procurement of submarine cable can take 2 to 3 years. Repairs will generally need to be made in relatively calm weather, and may not be possible in winter. Depending on the time of the year and the complexity of the repair, it could take between 3 and 9 months to repair a cable.
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Maintenance projects Maintenance projects typically consist of relatively high value planned repairs or replacements of components of larger assets. Maintenance projects would not be expected to increase the original design life of the larger assets. Maintenance jobs are typically run as a project where there are operational and financial efficiencies from doing so. The drivers for maintenance projects include asset condition, mitigating safety and environmental risks, and to improve performance. A number of maintenance projects have been undertaken for the HVDC fleet, including: Haywards maintenance projects: reactor painting busbar corrosion
Benmore maintenance projects: Supervisory Control and Data Acquisition (SCADA) cards repairs valve busbar corrosion.
The maintenance projects planned for the RCP2 period are described in subsection 4.4.3.
2.2.5 Interaction with Other Assets

The HVDC system is mostly physically separate from the rest of the transmission system assets. However, a number of assets in or associated with the converter stations (including synchronous condensers, AC power transformers, AC switchyard equipment and Transmission Lines) are covered by other asset strategies. These assets need to be managed, taking into account any interactions with the HVDC system and any additional performance or spares holding requirements. The HVDC system is reliant on reactive power assets, particularly the Haywards synchronous condensers and STATCOM and the transmission circuits around them.
2.3
Asset Performance
This section describes the historic performance of the HVDC fleet together with any risks and issues.
2.3.1 Reliability Performance

Achieving an appropriate level of reliability for our asset fleets is a key objective, as it directly affects the services received by our customers. Failure of the assets within the HVDC asset fleet can lead to an outage of the inter-island connection or a portion of the connections capacity. In many cases this would lead to a large price discrepancy in the electricity market, between the North Island and the South Island.
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Major failures
Converter stations
There have been no major failures at HVDC stations between 1990 and 2012. We define major failures as those that have caused a long-term (greater than one week) outage of at least one pole.
Electrode stations
There have been no failures of the electrode stations significant enough to cause an outage of the HVDC link.
Submarine cables and cable stations
HVDC submarine cable performance has been very reliable, with only one failure due to an internal electrical fault in Cable 6 in October 2004. There have been no failures attributable to mechanical damage. The 2004 cable failure reduced the capacity of the HVDC link from 1,040 MW to 886 MW. The failure occurred in shallow water in Oteranga Bay, and this meant it was feasible to undertake repairs by converting a locally available barge. The repairs to Cable 6 took almost six months. The greatest risk to the cables is damage caused by boats illegally fishing or anchoring in the area. While the current cables have not failed due to boat activity, it is suspected that the failure of one of the old decommissioned cables in 1991 (Cable 2) was caused by a fishing operation. The Maintenance section (section 4.4) describes the activities that will be undertaken to reduce the risk of this occurring. The original Pole 2 350 kV porcelain roof bushing at the Oteranga Bay Cable Station failed in service in 1996 after only four years of service, damaging the building and causing a lengthy forced outage. Replacement roof bushings using composite technology have been installed and, although there have been problems with deteriorating condition, there have been no further major failures. Availability The availability of the HVDC link varies from year to year, depending on the number and length of planned and forced outages. The availability from 2003/04 to 2011/12 is shown in Figure 2.
HVDC AVAILABILITY
100%
95% 90% 85%
80%
75% 2003/04 2005/06 2007/08 2009/10 2011/12
Figure 2: HVDC Annual Availability
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Pole 1 was generally less reliable than Pole 2 towards the end of its operation. Pole 1 was decommissioned in September 2007, which is why the availability is higher after 2007 when the data only relates to Pole 2. In 2010/11 and 2011/12 the availability was lower than previous years because a relatively large number of planned outages were required for the construction of Pole 3.
2.3.2 Safety and Environmental Performance

Subsection 2.2.1 described the characteristics of the HVDC assets that impact safety and environmental performance. This subsection reports on the actual safety and environmental performance of the fleets. There have been no major safety incidents involving the HVDC fleet in recent years. The number and nature of environmental incidents involving the HVDC assets have not been clearly recorded in the past, although recording and management of this information has begun recently so future versions of the fleet strategy will be able to provide improved environmental performance data.
2.3.3 Risks and Issues

This subsection briefly discusses the most significant risks and issues facing the asset management of the HVDC asset fleet. Strategies to manage these risks and issues are set out in chapter 4.
Submarine cables risk posed by marine vessels
The main risk to the submarine cables is damage caused by fishing activity where heavy trawl nets and associated equipment makes contact with the cables. There is also potential for anchor damage from large and small vessels to place the cables at risk. The Submarine Cables and Pipelines Protection Act 1996 provides legal protection for a CPZ across Cook Strait. In 1995 we started marine patrols of the Cook Strait CPZ, initially focusing on the hoki fishing season from June to September. Incidents of damage to the submarine fibre optic cables, and efforts by fishermen to circumvent the part-time patrol led to fulltime patrolling, which has now been in place for some years. There are about 4,000 vessel movements in the vicinity of the cables every year. Roughly 300 of these are of interest for gathering of evidence of possible infringements, and around 20 require follow-up. Information about alleged infringements is passed to the Ministry of Transport. There is a prosecution every 1 to 2 years. The marine patrol service includes continuing efforts to communicate with the fishing industry to help mitigate risk. The cables are laid separately to minimise the likelihood of all three cables being damaged in one incident.
Consequences of submarine cable failure
There is no backup for the submarine power cables and restoration times range from at least 6 months for a repair to 24 months for total replacement. Failure of any one power cable can result in a reduction in HVDC cable capacity to 1000 MW (there are 3 cables, each rated to carry 500 MW). The current total capacity of the link is 1,000 MW due to other constraints, but this is due to increase to 1,200 MW by the end of 2013 when the new Haywards STATCOM is commissioned. So a cable failure in the immediate future would reduce redundancy but not reduce the capacity of the link. It should also be noted that 84% of the time the transfer on the HVDC link is less than 500 MW.

Issue 1 October 2013 Severe environment at Oteranga Bay cable station
The HVDC cable station at Oteranga Bay faces severe environmental conditions, with regular gale-force and storm-force winds from north and south. The high wind speed and constant windborne salt pollution significantly reduces the life of the outdoor roof bushings. The harsh environment also affects the speed of deterioration of the station building cladding. As outlined in subsection 2.2.3, the building cladding at Oteranga Bay is currently in poor condition and needs to be replaced in the next five years. In response to the extreme environmental conditions, maintenance activities for the Oteranga Bay cable station are more regular to identify any rapidly accelerating corrosion. In addition, the design of new assets for the site must carefully consider the environmental factors. For example, we are planning to replace the current corroded roof cladding with aluminium cladding, which has superior corrosion resistance compared to most cladding options. The strategy for the Oteranga Bay cable station building is set out in subsection 4.1.2.
Cable stations roof bushings
HVDC transfer depends heavily on the performance of the roof bushings at the cable stations. The cable stations are located in remote areas and have difficult access for the heavy lifting equipment that is required for bushing replacement. If there is an emergency that requires a bushing replacement at short notice, a forced outage will be required for at least three days.
Pole 2 VBE and TCUs
Once stage 2 of the Pole 3 project is complete, the Pole 2 VBE and TCUs will be the only 1990 vintage controls left in the HVDC system because the other parts of the control system are being replaced as part of the Pole 3 project. The VBE and TCUs are critical parts of the control system and are nearing the end of their useful lives as they have a design life of approximately 20 years. We have very limited spares for this equipment and there is a risk that failure rates will start to increase due to age-related condition deterioration. It is becoming increasingly difficult to procure spares because of the age of the equipment. The strategy for the Pole 2 VBE and TCUs is set out in subsection 4.1.2.
Pole 3 seismic resilience
The new Pole 3 equipment has been designed to withstand higher-intensity earthquakes than Pole 2 (1 in 2,500 compared to 1 in 1,000 year event). In addition, the seismic resilience of Pole 2 equipment was estimated by analysis alone, while Pole 3 equipment had its seismic resilience estimated with the use of shake table testing. In the event of a relatively large earthquake, it is expected that Pole 3 could continue to operate while Pole 2 may not. Yet Pole 3 is dependent on several parts of the Pole 2 system (that lack readily available spares). In particular, the Haywards switchyard B insulators and disconnectors are a seismic risk for Pole 2 and Pole 3. The strategy for improving the seismic performance of Pole 2 equipment is set out in subsection 4.1.2.
Pole 2 Thyristor valve water cooling system
The Pole 2 thyristor valve uses stainless steel couplings in its cooling water distribution system. In the early 1990s, corrosion in similar components in another HVDC thyristor valve

was identified as the probable cause of cooling water leakage, leading to flashover and catastrophic failure of the complete thyristor valve. Condition assessment of the stainless steel couplings in the Pole 2 valves has identified increased corrosion and accumulation of aluminium hydroxide. Since the time of Pole 2 commissioning in 1991, there has been annual monitoring of corrosion rates by sampling of 6 out of 194 couplings at each converter station. Programmes of complete replacement of these couplings have been undertaken, and annual condition monitoring continues, to ensure that this risk is managed.
HVDC capacity constraints
The commissioning of the Pole 3 converter stations has substantially increased the capacity of the inter-island HVDC link to 1,000 MW. Yet the capacity of the link is still constrained by several factors, including voltage stability, capacity of existing submarine cables, and the overload capability of Pole 2. The capacity will be extended to 1,200 MW by 2014, on completion of Stage 2 of the Pole 3 project. Long-term future studies, as outlined in subsection 4.1.1, will assess the economic case for further investment to relieve other constraints so as to provide additional inter-island HVDC capacity.
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OBJECTIVES
Chapter 3 sets out asset management related objectives for the HVDC fleets. As described in section 1.4, these objectives have been aligned with our corporate management objectives, and higher-level asset management objectives and targets as set out in the Asset Management Strategy. Our overarching vision for the HVDC fleet is to provide an energy balancing system that matches generation and demand in the North Island and the South Island. In addition, the HVDC link facilitates the transfer of renewable energy from the South Island generation centres to the North Island load centres. Further objectives have been defined in the following five areas: Safety Service performance Cost performance New Zealand communities Asset management capability.
These objectives are set out below, while the strategies to achieve them are discussed in chapter 4.
3.1
Safety Objectives
We are committed to becoming a leader in safety by achieving injury-free workplaces for our employees and to mitigate risks to the general public. Safety is a fundamental organisational value and we consider that all incidents are preventable. Safety Objectives for HVDC Fleets Zero medical treatment injuries arising from the maintenance or operation of the HVDC assets. Ensure that risks to the public from the operation of HVDC ground electrodes are as low as reasonably practical.
3.2
Service Performance
Ensuring appropriate levels of service performance is a key underlying objective. The overall service performance objectives for the Grid in terms of Grid Performance (reliability) and Asset Performance (availability) are set out in the Asset Management Strategy. Grid performance objectives state that a set of measures are to be met for Grid Exit Points (GXPs) based on the criticality of the connected load. In addition, asset performance objectives linked to system availability have been defined, including a target of 97.5% HVDC system availability during RCP2.
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Service Performance Objectives for HVDC Fleets3 Availability Pole 3 forced energy unavailability: 0.5% or less. Pole 2 forced energy unavailability: 0.5% or less. Pole 3 scheduled energy unavailability: 1.0% or less. Pole 2 scheduled energy unavailability: 1.0% or less.
Outage rates Pole 3 forced outage rate: 5 outages or less each year. Pole 2 forced outage rate: 5 outages or less each year. Bi-pole forced outage rate: 0.1 outages or less each year.
Grid effects Minimal harmonic distortion. Minimal interference to customer ripple control systems.
3.3
Cost Performance
Effective asset management requires optimising lifecycle asset costs while managing risks and maintaining performance. We are committed to implementing systems and decisionmaking processes that allow us to effectively manage the lifecycle costs of our assets. Cost Performance Objectives for HVDC Fleets Minimise whole-of-life cost in asset management decision making (such as evaluation of replacement versus refurbishment, and capital versus maintenance expenditure). Minimise cost of major submarine cable repairs by maintaining necessary resources to undertake a prompt cut and cap operation in the event of a fault.
3.4
New Zealand Communities

Asset management activities associated with the HVDC fleets have the potential to impact on both the environment and on the day-to-day lives of various stakeholders. Relationships with landowners and communities are of great importance to us and we are committed to using asset management approaches that protect the natural environment. New Zealand Community Objectives for the HVDC Fleets No noise complaints from the public regarding the converter stations. No significant release of oil to the environment. SF6 emissions as low as reasonably practical. Reduced corrosion impacts of the Bog Roy electrode on the neighbouring farm.
These targets only cover the performance of the converter stations, and exclude outages of the HVDC assets caused by faults in other fleets, such as faults in the transmission line conductors.
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Effective relationships with landowners of the access routes to cable terminal and electrode stations. Effective relationships with the fishing industry in relation to the CPZ.
3.5
Asset Management Capability

We aim to be recognised as a leading asset management company. To achieve this, we have set out a number of maturity and capability related objectives. These objectives have been grouped under a number of processes and disciplines that include: Risk Management Training and Competency Asset Knowledge Continual Improvement and Innovation.
The rest of this section discusses objectives in these areas relevant to the HVDC fleets.
3.5.1 Risk Management

Understanding and managing asset-related risk is essential to successful asset management. We currently use asset criticality and asset health as proxies for a fully modelled asset risk approach. Asset criticality is a key element of many asset management systems. We are currently at an early stage of developing and implementing the approach as we work towards formal and consistent integration of asset criticality into the asset management framework. Asset health has not yet been implemented for the HVDC fleets. Risk Management Objectives for HVDC Fleets Up-to-date assessment of spares requirements and current availability. Reduced likelihood of a bi-pole fault. Development of criticality framework to differentiate HVDC assets.
3.5.2 Asset Knowledge

We are committed to ensuring that our asset knowledge standards are well defined to ensure good asset management decisions. Relevant asset knowledge comes from a variety of sources including experience from assets on the Grid and information from the manufacturers. This asset knowledge must be captured and recorded in such a way that it can be conveniently accessed. Asset Knowledge Objectives for HVDC Fleets Comprehensive understanding and experience of Pole 3 assets recorded.
3.5.3 Training and Competency

We are committed to developing and retaining the right mix of talented, competent and motivated staff to improve our asset management capability. This is particularly important for the HVDC fleet because of the specialised nature of the knowledge and work required.

Training and Competency Objectives for HVDC Fleets Service providers suitably qualified for work on specialised HVDC assets.
3.5.4 Continual Improvement and Innovation

Continual improvement and innovation are important aspects of asset management. A large source of continual improvement initiatives will be ongoing learning from our asset management experience. Continual Improvement and Innovation Objectives for the HVDC Fleets Development of understanding in regards to HVDC and dynamic and variable line rating. Improved long-term strategic planning approach to capital investment, such as the timing for the fourth submarine cable.
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STRATEGIES
Chapter 4 sets out the specific strategies for the management of the HVDC fleet. These strategies are designed to support the achievement of the objectives in chapter 3 and reflect the characteristics, issues and risks identified in chapter 2. The strategies are aligned with our lifecycle strategies below and the chapter has been drafted to be read in conjunction with them. Planning Lifecycle Strategy Delivery Lifecycle Strategy Operations Lifecycle Strategy Maintenance Lifecycle Strategy Disposal Lifecycle Strategy
This chapter also discusses personnel and service provider capability related strategies which cover asset knowledge, training and competence. Scope of Strategies The strategies focus on expenditure that is planned to occur over the RCP2 period (2015 2020), but also include expenditure from 1 July 2013 to the start of the RCP2 period and some expenditure after the RCP2 period (where relevant). Capex planned for the RCP2 period is covered by the strategies in sections 4.1 and 4.2, and opex is covered by the strategies in sections 4.3 to 4.6. The majority of the capex consists of asset replacements, which is described in subsection 4.1.2.
4.1
Planning
This section describes our strategies for the Planning lifecycle. Planning activities Planning activities are primarily concerned with identifying the need to make capital investments in the asset fleet. The main types of investment considered for this fleet are enhancement, development, replacement, and refurbishment works. We support the planning activities through a number of processes, including: Integrated Works Planning (IWP) cost estimation.
The planning lifecycle strategies for the HVDC fleet are described in the subsections below. Capital investment drivers Categories of capital investment generally have specific drivers or triggers that are derived from the state of the overall system or of individual assets. These drivers include demand growth, compliance with Grid reliability standards and failure risk (indicated by asset criticality and condition). Specific examples that drive capital investment in the HVDC asset fleet include:
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asset replacement, driven by condition increased capacity requirements, driven by demand for HVDC energy transfer enhancement of existing assets, driven by safety and performance.
4.1.1 Enhancement and Development

This subsection describes enhancement and development investments for the HVDC fleet. Enhancement and development investments in HVDC assets have been undertaken in response to a number of drivers including supply and demand forecasts, and the need to maintain appropriate levels of availability. Supply and demand forecasts determine the required capacity and associated investments for the inter-island link. The need to maintain appropriate levels of availability sometimes involves new improved equipment, while in other cases it involves auxiliary and maintenance equipment to help support the reliability of the HVDC equipment.
The strategies below consider the long-term implications for these drivers as we extend our planning horizon as part of our programme of asset management improvement.
Pole 3 Project
Continue the Pole 3 project, including stage 2 in 2013/14 and the investigation of stage 3. With the addition of Pole 3 in 2013, we have substantially increased the capacity of the inter-island HVDC link to 1,000 W, although the link is still constrained by several factors, including voltage stability, capacity of existing submarine cables, and the overload capability of Pole 2. Stage 2 a major capex proposal (MCP) of the Pole 3 project involves replacing existing Pole 2 control system (task completed), and improving voltage stability by adding filter banks and a STATCOM, which will increase the HVDC capacity to 1,200 MW. Stage 2 is due to be commissioned by 2014. Stage 3 of the Pole 3 project is currently being considered as a potential MCP. This would include at least one more submarine cable, a second STATCOM, and additional filter banks, which would allow the HVDC link to operate at 1400 MW. Stage 3 is unlikely to begin before the end of RCP3 as supply and demand forecasting suggest that current capacity is expected to be sufficient until 2030. This is dependent on a number of factors, such as overall South Island demand. Currently, the majority of generation projects being planned until 2020 are based in the North Island, where the majority of demand growth is expected.4 One aspect outside the MCP is the upgrade of the RTDS with new processor cards during RCP2, which is forecast to cost approximately $100,000.
4.1.2 Replacement and Refurbishment

Replacement is expenditure to replace substantially all of an asset. Refurbishment is expenditure on an asset that creates a material extension to the end of life of the asset. It does not improve its attributes. This is distinct from maintenance work, which is carried out
4
A list of all publicly known generation projects is maintained and provided by the Electricity Authority, available from www.ea.govt.nz/industry/monitoring/forecasting/long-term-generation-development/list-of-generation-projects/
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to ensure that an asset is able to perform its designated function for its normal life expectancy. Specific interventions have been defined for HVDC assets based on their condition and informed by their relative criticality. These interventions and their rationale are set out below. As described in subsection 2.2.3, the submarine cables are currently in good condition and expected to remain reliable for many more years, although a robust estimate of life expectancy is not available. Life expectancy is not well understood because of the lack of experience from overseas of this type of cable in such a rough environment. Replacement is not planned until after 2020, unless an unexpected catastrophic failure occurs and replacement is more cost-effective than repair.
Bog Roy electrode arms
Replace deteriorated electrode arms at the Bog Roy land electrode station at a rate of one electrode arm each year until 2018/19. The deterioration of the Bog Roy electrode arms is described in subsection 2.2.3. We plan to replace the eroded arms at a rate of one each year during RCP2, after which the remaining electrode arms will be in a reasonable condition and the ongoing rate of corrosion will be minimal due to the operation of Pole 3. The replacement electrode arms will be of a new improved design, which will improve the performance and safety of the electrode station. Electrode arm replacement will cost approximately $1.6m over the RCP2 period.
Pole 2 filter bank circuit breakers
Replace and refurbish Pole 2 filter bank circuit breakers before the risk of failure escalates. Frequent changes of HVDC power transfer also require frequent switching of the Pole 2 filter bank circuit breakers. There are a total of 10 circuit breakers and they operate between 50 and 750 times each year. The original Pole 2 circuit breakers had design lives of 2,000 operations and the newer circuit breakers have design lives of 10,000 operations. The 2,000 operation circuit breakers have been refurbished to give them a revised life of 4,000 operations. It is recommended that these circuit breakers be replaced or refurbished based on the number of operations rather than on invasive testing. Two of the original circuit breakers were replaced in 2005 and five others were refurbished between 2007 and 2010 to extend their lives to cover the next 2,000 operations. A further two circuit breakers were replaced in 2012. Table 6 shows the number of operations that have been reached by the filter bank circuit breakers as at March 2013.
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Unit
BEN 752B BEN 752A BEN 692B BEN 692A HAY 762 HAY 762A HAY 762B HAY 722 HAY 722A HAY 722B
Installed
Designed Life Expectancy (Operations)

10,000 2,000 10,000 2,000 2,000 10,000 10,000 2,000 2,000 2,000
Revised Life Expectancy (Operations)

10,000 4,000 10,000 4,000 4,000 10,000 10,000 4,000 4,000 4,000
Frequency
March 2013 Operations Count

6,480 306 168 232 256 423 3,789 3,943 2,541 2,553
% of Revised Life Left

35% 92% 98% 94% 94% 96% 62% 1% 36% 36%
2005 1992 2012 1992 1992 2012 2005 1992 1992 1992
High Low High Low Low High High Low High High
Table 6: Filter Bank Circuit Breaker Operation Counts
Based on the operations counts above, we expect five5 Pole 2 circuit breakers to reach their revised life expectancy during RCP2 and require replacement. One further circuit breaker is expected to reach its designed life expectancy and require refurbishment. Based on historic outturns and supplier information, installation of new circuit breakers is expected to cost approximately $620,000 each, while refurbishment is expected to cost $130,000. The five new circuit breakers and one refurbishment are therefore estimated to cost $3.2m. The expected schedule of these costs is provided in Table 7.
Works
Replacement Refurbishment Total
2015/16
$620k $130k $750k
2016/17
$620k $620k
2017/18
$620k $620k
2018/19
$620k $620k
2019/20
$620k $620k
Total
$3.1m $130k $3.2m
Table 7: Circuit Breaker Replacement and Refurbishment Schedule
Pole 2 Valve Base Electronics and Thyristor Control Units
Replace the Pole 2 valve base electronics (VBE) and thyristor control units (TCU), without replacing the valves. In 2015/16, we intend to replace the Pole 2 VBE and TCUs at Haywards and Benmore as well as the fibre optic links between VBE and TCUs. The Pole 2 VBEs are located in the Pole 2 control rooms and the TCUs are located in the valve halls. The reasons that replacement is required are discussed in subsection 2.3.3.
BEN CB752B, HAY CB722A, HAY CB722B, HAY CB762B, and HAY CB722.
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The existing VBE is powered by a 24 V DC battery bank. However, it is expected that the new VBE and TCUs will be powered directly by the substation supply, so 24 V DC batteries will no longer be required for the VBE. A supplier has recently advised us that the Pole 2 VBE can be updated to a modern equivalent without replacing the valves (which would involve significant cost). Based on capital cost estimates provided by that potential supplier and the Pole 3 project tender and contract documentation, it is estimated that this project will cost $7.6m, including installation and material costs.
Seismic improvement works for Pole 2 era equipment
Replace Pole 2 disconnectors and insulators in Haywards switchyard B. As described in subsection 2.3.3, the majority of the Pole 3 system is designed to withstand a 1 in 2,500 year earthquake, except for a very small number of assets that Pole 2 and Pole 3 depend on. The Haywards switchyard B insulators are type C12, which are not as seismically resilient as C18 insulators. There are approximately 200 C12 type insulators that require replacement with C18 insulators to improve the seismic resilience of both poles. It is estimated that the cost of these replacements is approximately $2,500 for each insulator. The original Pole 2 pantograph disconnectors also fail to meet the seismic standards of Pole 3. It would be practical to replace these at the same time as the outages planned for the switchyard B insulator replacements. It is estimated that each disconnector replacement will cost approximately $100,000 and there are 6 disconnectors that need to be replaced. Therefore, the forecast cost of replacement of disconnectors during RCP2 is $600,000. The total cost for the seismic improvement works is forecast to be approximately $1.2m during RCP2, including the cost of interest during construction. Further seismic works may be required in RCP3 following the RCP2 maintenance project planned to assess the condition of Pole 2 asset damping systems.
Oteranga Bay cable station cladding replacement
Re-clad the roof and walls of the Oteranga Bay cable station building. As described in subsection 2.3.3, Oteranga Bay is an extremely harsh environment, and the roof and cladding systems are in a deteriorated condition. The building is no longer fully weather-tight. It is proposed that the roof and wall cladding be replaced during the RCP2 period, with a design that is better suited to the environment so as to protect the valuable equipment inside the building (including switchgear, instrument transformers and surge arresters). This cladding is likely to include the use of marine aluminium, which is more resistant to corrosion in coastal areas. The re-roofing works may be lengthy due to the weather, as roof installation is only possible in winds of 15 km/hour or less. We forecast that the re-cladding of the roof will cost $1.2m and the exterior walls will cost $800,000. The total cost, including interest during construction, is forecast to be approximately $2.2m.
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Issue 1 October 2013 Benmore and Haywards substation fire water systems replacement
Decommission an existing off-site 1,000,000 litre water tank and pipework and replace it with a new 500,000 litre tank on the Haywards site and replace water supply at Benmore. We have water deluge systems at Haywards and Benmore that can suppress or extinguish any fire prior to the arrival of the NZ Fire Service (which may be delayed due to the need to assess and address safety issues prior to access). The relevant National Fire Standard (NZS 4541) requires the fire suppression systems to have a primary water source and a backup water source. Haywards The Haywards water system consists of three elements. A new steel 500,000 litre tank, pumps, and reticulation system was recently installed as part of the Pole 3 project. This is the primary water supply. An existing reinforced concrete 1,000,000 litre tank is located on an easement on New Zealand Transport Agency (NZTA) land adjacent to State Highway 58, which feeds the Haywards site reticulation system via a single pipe. This is the current backup water supply to the Haywards site for fire water systems, synchronous condenser water cooling systems and potable water. The tank is filled from the Greater Wellington Regional Council (GWRC) bulk supply main and is also used to fill the new 500,000 litre tank (primary supply). As a backup plan, it is possible for the Haywards site reticulation system to connect to the GWRC bulk supply main running up State Highway 58 (which runs past the substation). However, access to the main was provided by GWRC on the basis that it was a temporary solution. So this second backup supply will not be available in the future.
The existing supply pipe between the 1,000,000 litre tank and the site water supply manifold is in poor condition and, although the connection has sufficient pressure, the relatively small diameter means the flow rate is insufficient to provide backup for either Pole 2 or Pole 3 converter transformer deluge fire protection systems. Given the criticality of the Haywards site, it is important to have reliable N-1 fire fighting facilities. We have determined that the existing tank on the hill should be replaced with a modern equivalent located on the Haywards site. The two tanks will also be given independent connections to the GWRC bulk water supply main to improve the level of redundancy. Benmore The Benmore fire water system consists of two elements. A new steel 500,000 litre tank, pumps, and reticulation system is planned to be installed as part of the HVDC Pole 3 project. A water supply from Meridian is tapped off their auxiliary generators.
Meridian has indicated that it wishes to decommission its Benmore auxiliary generators to free up space for a new switchyard. Without remedial works, this would shut off the water supply to our fire water reticulation system.

If the auxiliary generators are decommissioned, we will reconfigure the fire water connection to the auxiliary generator penstock at an estimated cost of $500,000. However, this will leave us dependent on Meridians decisions, including whether they will agree to our proposed water connection re-configuration. If Meridian does not agree to our proposal, the alternative is to add a second 500,000 litre tank and associated equipment (such as piping and pumps), at an estimated cost of $1.3m. Costs The total cost is estimated to be approximately $1.8m ($1.3m for Haywards and $500,000 for Benmore).
Te Hikowhenua electrode station cabling and knife switch replacements
Replace the underground earthwire cables and knife switches at the Te Hikowhenua electrode station. The Te Hikowhenua electrode cable station includes approximately 10 km of buried copper earthwire covered in special polyvinyl chloride (PVC) insulation. The earthwire connects between the Te Hikowhenua switchhouse and the 42 electrode cells, with one cable for every two electrode cells. Knife switches in the switchhouse allow individual cable/electrode cell combinations to be removed for maintenance. The buried earthwire cables are starting to disintegrate and need to be excavated and replaced to avoid failure. Knife switches are rarely in use around the world because of safety issues; the function is usually provided by safety switches. Due to their open mechanism, knife switches are prone to arcing and the exposed conducting materials pose a risk of electrocution. The replacement of the underground earthwire cables and knife switches is forecast to cost $200,000 and will be undertaken during RCP2.
HVDC station building works
Replace and refurbish the HVDC site buildings and grounds infrastructure and building services as required. During RCP2, it is expected that the HVDC sites will require the buildings and grounds replacement and refurbishment works shown in Table 8 to continue to provide the infrastructure for the HVDC assets at a suitable level of safety, security, and functionality. It should be noted that we directly manage our HVDC buildings and grounds internally, rather than via the Facilities Maintenance management service provider used for the AC substation building and grounds.
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Location
Haywards and Benmore
Works
Replacement of sound proofing (T23/T28) Pole 2 building air conditioning, ventilation, and management systems replacement Replacement of Pole 2 thyristor halls indoor lighting fittings (incl. emergency lighting) Replacement of switchyard B outdoor lighting Sealing substation roads
Reason
The material is degrading and birds are pulling it out (which is then getting into transformer radiators). Systems at end of expected life. Air quality and temperature important for maintaining the condition of the HVDC equipment. Current lighting system is obsolete. There are significant cost savings to be made if the system is replaced at the same time as bulb replacements are required, because the largest cost is access (scaffolding or elevated work platforms). The lighting systems are obsolete and insufficient. Access routes have changed post Pole 3 construction, but new access routes have not been sealed. The bushings accumulate material on them, particularly salt, so require a safe method of cleaning them during periods of infrequent rain. An extension is required to adequately store the necessary equipment (cable, ROV tools, and so on) in one place near Cook Strait. The building also requires minor earthquake strengthening to meet our seismic policy. Seismic strengthening is required to reduce the chance of structural damage in a severe earthquake so that the cable stations are not a weak point in the HVDC systems seismic resilience.
Forecast Cost
$120,000
$1,000,000
$80,000
Haywards and Benmore Haywards and Benmore
$80,000k
$400,000
Fighting Bay
Portable bushing cleaning system
$30,000
Miramar
Miramar cable store extension and seismic strengthening
$60,000
Oteranga Bay and Fighting Bay
Cable station seismic strengthening works
$100,000
Total
$1,9000,000
Table 8: HVDC Buildings and Grounds RCP2 Works Forecast for RCP2
As detailed in Table 8, the cost of these works is forecast to be approximately $1.9m during RCP2.
Additional spare components
Acquire spare capacitor cans, control system cards, and other necessary spares for the HVDC fleet. To determine the number and location of spares required we use our operational experience to assess the number of failures that are likely to occur of any one asset type. In addition, at least one spare is held for major equipment. For example there is one spare Haywards converter transformer and one spare Benmore converter transformer. The HVDC spares are stored in multiple locations (Bunnythorpe, Haywards, Benmore, and Addington). We are currently auditing the Pole 2 spares inventory to document the quantity
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and condition of spares. The Pole 3 spares requirements were thoroughly investigated and documented for the Pole 3 contract. The existing Pole 2 capacitor filter banks installed in the early 1990s will be 25+ years old during the RCP2 period, which is the extent of their original design life expectancy. Yet rather than replacing the complete capacitor banks at 25 years, it will be more economical to keep the capacitor banks in place and increase the stock of spare capacitor cans to manage the expected increasing failure rate of individual capacitor cans. The failure of individual capacitor cans does not generally result in an outage of the whole bank. The cost of the additional capacitor cans is forecast to be $520,000. A new control system is being put in place so that Pole 2 and Pole 3 control systems are modern and compatible. This control system will be commissioned in December 2013 and will have a warranty in place until December 2018. When the warranty period is over, we will need to have suitable stocks of spares on hand and also a stock of strategic spares if obsolescence becomes an issue, particularly with specialised control card components. So we will increase the stock of these assets during RCP2 at a forecast cost of $520,000. A large number of spares were specified and supplied in the Pole 3 project. However, we have not previously managed the same types of assets that are used in the new Pole 3. So we will assess the failure rates of the assets over RCP1 and, based on this assessment, will increase the spares stock of the assets with the highest failure rates. Based on engineering judgement and discussions with relevant specialists, it is estimated that the additional spares for Pole 3 will cost approximately $520,000. The total expenditure on additional spares for the HVDC fleet over RCP2 is forecast to be approximately $1.6m.
4.1.3 Integrated Works Planning

Our capital governance process IWP includes the creation of business cases that track capital projects through three approval gates, with the scope and cost estimates becoming more accurate as the project becomes more refined. The IWP process integrates capex across a moving window of up to 10 years in the future. This optimisation approach seeks to ensure that works are deliverable and undertaken in an efficient and timely manner. Planning of all HVDC works takes into consideration relevant site strategies, required outages and resources, and any potential synergies with other projects. As described in subsection 2.2.5, the IWP process allows for coordination across works on transmission system assets which minimises disruption and cost.
4.1.4 Cost Estimation

Cost estimation is a key stage of the capital investment process and forms a critical input into projects at various stages in the planning process. Historically, cost estimates for HVDC works were developed using proprietary systems. This has now transitioned to a central cost estimation team, which uses the cost estimation tool Transpower Enterprise Estimation System (TEES). We aim to achieve P50 cost estimates. Further details on our cost estimation approach can be found in the Planning Lifecycle Strategy document.
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Issue 1 October 2013 Customised Estimate Process to Achieve P50
Develop detailed desktop studies for scope descriptions and estimate cost using customised estimate process for large capital works. Cost estimates are to be developed to achieve a P50 confidence level. HVDC capital works do not generally use volumetric cost estimation because they are typically one-off unique projects. This also reduces the extent to which historic project costs can be relied on to forecast future projects. Therefore, the cost for each large capital project has been estimated individually, taking into account the specific context, risks and requirements of the project and the installation site using the customised estimate process.6 Cost estimation of capital works in the HVDC system will take into account the specialised equipment required, where there are only a few possible suppliers (and sometimes only one) that results in potentially reduced competitive pressures. In addition to the equipment and construction costs, a number of additional factors have the potential to impact the project cost. Depending on the project, these may include: consenting and environmental costs underground services (which may require relocation) number of outages expected (which may require additional outage planning and switching costs).
These issues are considered for each individual project to assess whether they need to be included. Estimation sources We currently use the TEES US cost estimation tool as a price-book for individual costs and unit rates. These component costs are based on historic, specific manufacturer quotes and period supply cost data. The most important source of cost information is individual estimates and supplier quotes, because equipment for HVDC projects is often specialised or unique. For example, the cost of circuit breakers used in the AC system is lower than the cost for those used in the HVDC system because of the specialised nature of circuit breakers for HVDC applications.
4.2
Delivery
Once the planning activities are completed, capex projects move into the Delivery Lifecycle. Delivery activities are described in detail in the Delivery Lifecycle Strategy. The following discussion focuses on delivery issues that are specific to the HVDC fleet.
4.2.1 Design
The design of large HVDC projects, such as the Pole 3 converter stations, is typically carried out as part of a complete turnkey solution that we procure, although our active involvement through the design stage is very important. No further major design work is expected to be required until the future Pole 4 project. Smaller-scale design work will be required for
This assessment is later refined via a Solution Study Report investigation which informs the BC3.
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possible HVDC projects, including a new submarine cable or cables and the design of a Pole 2 1,000 MW overload capability.
Management of new designs
Ensure any new HVDC asset designs or innovations are appropriately managed and followed. We will ensure HVDC assets are designed, installed and maintained to minimise lifecycle costs while maintaining acceptable levels of performance. The majority of HVDC assets are designed by third parties, so we ensure compliance with standard designs by reviewing all designs before construction. The reviews must be carried out by engineers with sufficient skills and experience as well as a thorough understanding of our standard designs. A new submarine cable or cables could be installed as part of Stage 3 of the Pole 3 project. Due to the age of the last submarine cable designs, a new submarine cable design project would be initiated once the need for new submarine cables is identified.
4.2.2 Procurement
For more details of our general approach to procurement, see The Sourcing, Supply & Contracts Approach (2011) and the Delivery Lifecycle Strategy. There is limited competition in the international HVDC market, which can impact service offerings and pricing levels, but we carry out competitive tender processes where possible. We typically procure high-risk minor components and materials, such as cooling system water treatment resins, from the original equipment manufacturer, even if it appears on first inspection to be more expensive than alternative sourcing options. This is because the potential cost saving is usually negligible in comparison to the risk of major failures of the main equipment that may result from components or materials that are subsequently found to be non-compliant or incompatible.
4.2.3 Delivery Planning

The plan for delivering HVDC capital works is managed under the IWP process (as discussed in subsection 4.1.4). HVDC works generally follow the same IWP process as works in other parts of the network, but the HVDC fleet faces some particular deliverability issues that are discussed below.
Deliverability of HVDC works
Ensure the deliverability of HVDC works through effective planning and outage management. Deliverability for major projects is a challenge due to the difficulty in getting outages on the HVDC link. We must schedule HVDC works so that they can occur concurrently during planned outages when the demand on the HVDC link is at its lowest.
4.2.4 Construction
The construction phase of an assets lifecycle is a large determinant of quality and has particular safety risks. This why the project management of construction projects is

important and is given substantial support and focus. To support the reduction of construction risks, we maintain lessons learned registers for all construction projects, which are fed back into the management of future projects. For works on the HVDC fleet the on-site presence of our staff is very important to support high-quality installation and commissioning, as are robust quality assurance processes. We ensure a significant on-site presence and are more involved in design and build projects than occurs overseas. This frequent interaction with the service providers and suppliers ensures that any possible issues are noticed and addressed as early as possible or avoided completely. For the Pole 3 project it has been particularly important to have our personnel on-site to identify and formally record defects. These defects cannot be rectified without impacting on the schedule of the project, so the record of defects will be worked through by the supplier after commissioning.
4.3
Operations
The Operations Lifecycle phase for asset management relates to planning and real time functions. Operational activities undertaken are described in detail in the Operations Lifecycle Strategy. This section describes the strategies specific to the operation of the HVDC asset fleet and identifies where and how these strategies relate to the higher-level strategies and objectives for the overall fleet.
4.3.1 System Simulation

Real Time Digital Simulator
Apply the RTDS delivered with the HVDC Pole 3 project to help solve a range of complex dynamic scenario problems. During the Pole 3 Project, a RTDS was used to develop and test the new HVDC control software. Some of the Pole 3 commissioning tests were performed on the simulator, as they were too difficult to perform in the field. We will continue to use the RTDS to support HVDC link operations. Understanding how the HVDC system will perform in unusual conditions is vital, and can help avoid unexpected events that could potentially lead to widespread effects on the power system. We cannot test extreme scenarios in the field to make sure the HVDC controls perform as expected. We have to rely on simulation. The RTDS simulator is not limited to HVDC applications we also plan to use it to model complex scenarios in any area or element of the power system that may benefit other programmes of work.
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4.3.2 Ratings
Dynamic line rating
Develop a Pole 2 thermal model and provide HVDC input data for the dynamic line rating controls. Dynamic line rating is the real-time adaptation of the permitted maximum rating of equipment, based on the premise that an assets ability to cope with electrical load is affected by environmental factors. In particular, most electrical assets are limited by their thermal capacity because the temperature increases with the electrical load. Therefore, environmental influences on the temperature, such as ambient air temperature, will affect the amount of load that electrical assets can carry without excessive risk, wear or damage. Information on dynamic line rating is also provided in the Conductors and Insulators Fleet Strategy. Our management of line ratings is becoming increasingly dynamic to optimise the use of existing assets, particularly as the highest load is typically experienced during cold weather. To implement dynamic rating, sophisticated controls are required that can act on real-time data being analysed with thermal models. The Pole 3 project has introduced control systems that can carry out sophisticated dynamic rating, but not all of the data provision and models have been established as yet. To fully implement dynamic rating based on ambient temperature, we plan to develop a thermal model for the Pole 2 transformers and investigate installation of the necessary equipment to provide real-time thermal data to the HVDC control system. Dynamic line rating has potential application in other parts of the network, so the HVDC system could be considered as a pilot for this technology in New Zealand.
4.3.3 Outage Planning

Power system outages for preventive maintenance, corrective maintenance, and replacements must be planned to minimise disruption to customers. Grid operations identify requirements for outages (including reclose blocks) and manage the planning of outages and reclose blocks. The load carried by the HVDC system is typically greatest in spring, when there is surplus generation available in the South Island from hydro sources. So we plan HVDC outages for summer. In particular, we have an annual maintenance outage in early summer each year when other works can be carried out as well.
4.3.4 Contingency Planning

The HVDC transmission network provides a vital infrastructure service for New Zealand. Failure of the HVDC transmission service leads to an immediate impact on electricity market participants, and may result in disruption to economic activity. Some HVDC asset failures can present serious safety hazards for employees and members of the public or result in environmental damage. Therefore it is essential that we have plans in place for responding promptly and effectively to HVDC system incidents and emergency situations.
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Contingency planning for the HVDC system focuses on reviewing and maintaining the holdings of spares, and ensuring an adequate level of emergency preparedness.
Contingency response capability
Ensure there are sufficient plans, skilled manpower and emergency equipment in place to enable rapid restoration of HVDC transmission service following failure. Our main method of preparation for emergencies is the maintenance of a good stock of spares and repair capability and ensuring the timely availability of a sufficient number of skilled people so that HVDC transmission can be restored in as short a time as possible. We maintain specific contingency plans to respond to major failures of the HVDC submarine cables. These are detailed in the HVDC Cable Emergency Preparedness Manual. Ordering new HVDC submarine cable is expected to take at least 1218 months, so holding spare cable is important for restoration of the HVDC system to full capacity in a timely manner following a cable fault. We have specialised equipment required to manage the spare cable such as lift clamps, cutters, and linear tractor engines, although these may require some refurbishment before use. The method of repair using the spare cable would need to be adapted for the unique circumstances of a particular failure (such as location, resource availability, and depth). The initial priority for a cable repair is to cut and cap the cable (if the outer sheath is damaged) to prevent water ingress, because the length of cable that requires replacement is directly related to the length of time taken to cut and cap the cable. A prompt cut and cap operation will prevent the water ingress from spreading further than can be addressed with the length of spares available (3.6 km of cable) and will minimise the amount of spare cable required so that some spare cable may be left for future repairs. The full plan for such a situation is described in the HVDC Cable Emergency Preparedness Manual.
Shallow draft barge
Keep the shallow draft barge on a retainer in New Zealand waters for use in future submarine cable repairs. The shallow draft barge Brandywine was used as the support vessel for the successful repair of Cable 6 in 2005. We currently have the Brandywine on a retainer arrangement, which means that it stays in New Zealand. Although it is used for other purposes around New Zealand, we retain priority of use of the barge. It is very important that we have the appropriate equipment and skills available for submarine cable works at short notice. Without having a suitable vessel on a retainer, there could be a long lead time for procurement of an alternative, limiting our ability to achieve cable repairs in a timely manner.
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4.4
Maintenance
The maintenance of our assets spans the majority of their lives. Our approach to maintenance and the activities we undertake are described in detail in the Maintenance Lifecycle Strategy. We class maintenance tasks into the following main categories: preventive maintenance, including: condition assessments and patrols preventive maintenance/servicing
corrective maintenance, including: fault response repairs
maintenance projects.
The remainder of this section describes our maintenance activities and strategies relating to HVDC assets. It identifies where and how these strategies relate to the higher-level strategies and objectives for the overall fleet. With the recent commissioning of Pole 3, increased monitoring will be required for a short period and several investigations into the new plants performance and any faults will be required.
4.4.1 Preventive Maintenance

Preventive maintenance is work undertaken on a scheduled basis to ensure the continued safety and integrity of assets and to compile condition information for subsequent analysis and planning. Preventive maintenance is generally our most regular asset intervention, so it is important in terms of providing feedback of information into the overall asset management system. Being the most common physical interaction with assets, it is also a potential source of safety incidents and human error. The main activities undertaken are listed below. Inspections: non-intrusive checks to confirm safety and integrity of assets, assess fitness for service, and identify follow up work. Condition Assessments: activities performed to monitor asset condition or predict the remaining life of the asset. Servicing: routine tasks performed on the asset to ensure asset condition is maintained at an acceptable level.
Specific programmes of preventive maintenance

Condition assessment
The service providers undertake regular condition assessments of the HVDC assets. The condition assessment results are recorded on a range of 1 to 10, where 10 represents new assets with no problems and 1 represents severely degraded assets at increased risk of failure.
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Issue 1 October 2013 Servicing
The main ongoing preventive maintenance tasks are: replacement of cooling system resins replacement of Pole 2 cooling water couplings electrode maintenance (such as removing build-up on electrodes) converter tap changer maintenance filter banks circuit breaker maintenance servicing of air handling systems.
Submarine cable patrols and inspections
The detail of the ongoing submarine cable patrols and inspections is provided in the relevant strategies below. Preventive maintenance strategies We intend to implement the following preventive maintenance strategies to support the objectives stated in chapter 3. The strategies are largely implemented by two service provider companies who have dedicated HVDC personnel. We have a competitive tender process for selecting the service providers and attempt to keep the workload for them relatively smooth over time. We are currently investigating alternative approaches that could reduce the cost of the submarine cable inspection and CPZ patrol strategies, such as purchasing our own vessel capable of undertaking patrols and deploying an ROV.
Haywards and Benmore Pole 2 valve hall cleaning
Remove dust build-up from the Haywards and Benmore Pole 2 valve halls. A build-up of black dust has recently been observed on the walls and stacks in the Pole 2 valve halls at Haywards and Benmore. It is suspected that this is due to the construction activity from the Pole 3 project generating more dust than the air conditioning system can handle, but this has not been confirmed. The dust has been tested and shown to be mildly conductive, so it could cause flashovers. Some overseas transmission asset owners have their HVDC valve halls cleaned biennially, although our Pole 2 valve halls have not been cleaned since 1992. When we replace the VBE and TCUs in RCP2 we will also clean the thyristor modules and other valve stack components within the valve as part of the replacement project.
Pole 2 Filter banks
Increase the level of preventive maintenance on the Pole 2 filter banks. It is difficult to predict how the Pole 2 filter banks will perform in conjunction with the new Pole 3 filter banks. The Pole 2 filter bank capacitors are marginally rated, so this could cause problems. Studies indicate that there will be no problems with compatibility, but it is difficult to be sure because every HVDC system is unique. Therefore, we will increase the level of

monitoring and condition assessments on the Pole 2 filter breakers until it has been shown that there is no compatibility problem.
Inspections of submarine cables
Undertake regular inspections of the submarine cables using divers and an ROV. We will continue to monitor cable condition with an ongoing programme of inspection using an ROV. The observations from ROV surveys help us to understand the deterioration processes caused by the marine environment. We have formed an agreement with another utility to give us access to a New Zealand-based ROV at a stable, much lower price than overseas sources, and to achieve improved availability and responsiveness. To gain the maximum benefit from the ROV agreement and to ensure ROV operators remain competent, an annual ROV survey is completed. Diving inspections of the cables in near-shore seabed areas will continue to provide a check on the condition of cables, particularly in the severe environment of Oteranga Bay. Typically deep inspections (25m to 45m) will be made every five years and shallow inspections (up to 25m) every three years. Although they are costly undertakings, inspections of the submarine cables are worthwhile because they help to mitigate the risk of damage that would lead to large cost of repair or replacement of cables. In addition, early detection of problems can allow the cable to be repaired rather than replaced. The frequency of the inspections is varied for two main reasons. First, the deep inspections are done less frequently because they are more costly. Second, the Terawhiti rip area of the Cook Strait (near Oteranga Bay) is inspected more frequently, because of the rips effect on the cables resulting in a higher risk of cable deterioration in this area.
Submarine Cable Protection Zone
Undertake a full-time patrol of the submarine CPZ by sea and air to enforce the law prohibiting fishing and anchoring in the area. We will maintain a full-time marine vessel patrol service covering the Cook Strait CPZ complemented by occasional patrol by a helicopter. The patrol monitors vessel activity and enforces the law prohibiting fishing and anchoring within the CPZ as well as educating vessels in the area on the law. Prosecutions by the Ministry of Transport for illegal fishing are taken, based on evidence from the patrol vessel.
Smoothing reactors
Paint smoothing reactors to cover the black spots that develop. DC smoothing reactors attract some particulate matter, particularly products of combustion. This results in black spots on the reactors, which need to be painted over. This is required more frequently at Haywards because of airborne contaminants, resulting from the site being located next to a state highway, and exposed to salt-laden winds.
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4.4.2 Corrective Maintenance

Corrective maintenance includes unforeseen activities to restore an asset to service, make it safe or secure, prevent imminent failure and address defects. It includes the required followup action, even if this is scheduled some time after the initial need for action is identified. These jobs are identified as a result of a fault or in the course of preventive work such as inspections. Corrective works may be urgent and if not completed for a prolonged period may reduce network reliability. Corrective maintenance has historically been categorised as repairs and fault (response) activities. Repairs include the correction of defects identified during preventive maintenance and other additional predictive works driven by known model type issues and investigations.7 Timely repairs reduce the risk of failure, improve redundancy and remove system constraints by maximising the availability of assets. Activities include: Fault restoration: unscheduled work in response to repair a fault in equipment that has safety, environmental or operational implications, including urgent dispatch to collect more information Repairs: unforeseen tasks necessary to repair damage, prevent failure or rapid degradation of equipment Reactive inspections: patrols or inspections used to check for public safety risks or conditions not directly related to the fault in the event of failure.
Repairs We may make repairs to HVDC assets where a fault has been identified that could potentially result in a failure, or when a failure has occurred. In both cases, the repairs are carried out to support the network reliability and safety objectives. Repairs are usually carried out by our service providers, although they will sometimes need a subcontractor to carry out the repair if it is particularly specialised. We also carry out some maintenance on the farm neighbouring the Bog Roy electrode station where stray currents pass through earthed metal assets on the farm (such as fences and sheds) causing premature deterioration.
HVDC station repairs
Repair assets at the HVDC converter stations as required. The most common repairs required at HVDC converter stations are fixing corrosion issues and repairing damaged assets following a failure. We will work to repair assets as soon as possible if it has resulted in a pole outage. If the problem does not result in an outage, then we will wait until the next planned outage to carry out the repair work, as long as there is not a significant safety or reliability risk. Fault response Fault response is required to restore the function of assets as quickly as possible to maintain HVDC power transfer.
7
Where the number of potential repairs is deemed sufficiently high a Maintenance Project will be instigated to undertake the repairs works.
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Issue 1 October 2013 HVDC fault response
All failures will be responded to in a timely manner, as determined by the criticality of the asset. No repairs will compromise the safety or likelihood of repeated failure of the HVDC asset so it can return to service quickly. This supports our key objectives of service performance and safety. We have established a process to determine an HVDC asset criticality framework, with assets capable of causing a bi-pole failure considered to be most critical. This will be used to prioritise fault response and determine how quickly personnel are required to respond so we can maintain efficient performance of the HVDC assets.
4.4.3 Maintenance Projects

As discussed in subsection 2.2.4, maintenance projects typically consist of relatively high value planned repairs or replacements of components of larger assets. Maintenance projects would not be expected to increase the original design life of the larger assets. Maintenance jobs are typically run as a project where there are operational and financial efficiencies from doing so. The drivers for maintenance projects include asset condition, mitigating safety and environmental risks, and to improve performance. Over the RCP2 period we intend to implement the following maintenance projects.
Te Hikowhenua electrodes
Regular maintenance will be carried out on the Te Hikowhenua electrodes to remove build-up of calcium. As discussed in subsection 2.2.3, the substantial period of mono-pole operation of the HVDC link with only Pole 2 operating has resulted in the build-up of deposits on the electrodes. The rate of accumulation of magnesium and calcium hydroxides will significantly reduce following the commissioning of Pole 3, when the link will mostly operate as a bi-pole system. The maintenance involves service providers manually chipping the deposits off the electrodes. The future maintenance is expected to cost approximately $100,000 each year, and the total cost over RCP2 is forecast to be approximately $500,000.
On-line dissolved gas analysis equipment
Install on-line DGA equipment on the Pole 2 converter transformers at Benmore in 2014/15. An increase in the short-term overloading capability of Pole 2 will ultimately be required to achieve the maximum capacity of the HVDC link following the commissioning of Pole 3. This will involve some additional risk associated with the Pole 2 converter transformers. The provision of on-line DGA equipment on the Pole 2 converter transformers will improve monitoring capability and help manage this additional risk. On-line DGA has recently been installed on the Haywards Pole 2 converter transformers, and the same type will be installed
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on the Benmore Pole 2 converter transformers during RCP1 when a suitable outage can be arranged. Note: The Pole 3 converter transformers had on-line DGA installed by the supplier before they were delivered to New Zealand.
Tap Changer Overhauls Diverter Switch Contacts and Position Indicators
Overhaul Pole 2 transformer tap changers before 450,000 operations. The efficient operation of the national electricity market requires frequent changes in the levels of HVDC power transfer. These loading changes require frequent changes of tap position of the converter transformers. There has been an average of 17,000 tap changer diverter switch operations each year on each of the six in-service Pole 2 converter transformers and up to 30,000 operations in some years. The diverter switches operate in oil and the oil quality deteriorates slightly with each operation. The number of operations in March 2013 was already 350,000 (for both Haywards and Benmore converter transformers). Therefore, it is expected that all 12 tap changers will require refurbishment before the end of RCP2 because all of the Pole 2 converter transformers are expected to approach 450,000 operations (based on an average of 17,000 operations each year) during RCP2. The actual year that the refurbishment is required will depend on the characteristics of the electricity market over RCP1 and RCP2, which affects the variability of loading of the HVDC link. During the RCP2 period, the following maintenance works will be required before the number of tap changer operations reaches 450,000 for Pole 2 transformers and 500,000 for Pole 3 transformers: replacement of diverter switch contacts on each converter transformer unit replacement of tap changer position indicators.
Each of the six HVDC Pole 2 converter transformers has two on-load tap changers. Our criterion for tap changer refurbishment every 450,000 operations is recommended by the manufacturer. For comparison, the Pole 3 warranty is dependent on similar maintenance work being scheduled for at least every 500,000 operations. Three of the Pole 2 converter transformer units at each converter station will be overhauled on site, without the oil being drained. The completion date for the programme depends on how many tap changer operations will occur over the next few years. We will also coordinate the works with the transformer tap changer evaluation maintenance project where possible. The project has already begun in RCP1, and will continue into RCP2. The total cost forecast for this project during RCP2 is approximately $600k.
Pole 2 transformer tap changer evaluation
Undertake pilot inspection and condition assessment of tap changers on one Pole 2 converter transformer at Haywards and Benmore. The tap changers on the Pole 2 converter transformers experience a large number of tap operations, and represent a potential mode of failure, with a long lead time to repair.
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To help assess and manage this risk, it is planned to undertake a pilot inspection and condition assessment to evaluate the state of the tap changers at Haywards and Benmore. One transformer from each site will be swapped out with the spare, drained of oil, and the condition of the main tap changer components will be examined. The cost for swapping out a single phase transformer is $200k. This operation is relatively expensive because it requires up to 15 personnel for 5 days to perform the task (and many special tools). If the inspection reveals that the condition of the main tap changer is poor, then this may require planning for complete tap changer replacements. It is anticipated that complete replacement of the tap changers will not be required; however, it is expected that the tap selectors will require replacement. If required, replacement of all converter transformer tap changers would cost approximately $3.6m. The cost of the pilot inspection and assessment is forecast to be $300,000 for each transformer over 2017/182018/19, with two transformers planned for evaluation (total cost of $600,000).
Pole 2 asset damping systems condition assessment
Assess the condition of the Pole 2 asset damping systems that provide the assets with seismic protection. Much of the Pole 2 equipment is supported on seismic damping/isolating devices or yielding mechanisms that were installed in 1991. It is possible that the condition of some of the seismic systems may be poor enough to prevent or partially restrict their proper function during an earthquake, such as moving parts having seized up with the lack of use in over 20 years. It is forecast that this maintenance project will cost approximately $400,000 during RCP2, for the assessment of equipment at Haywards and Benmore.
Pole 3 filter bank circuit breaker overhaul
Overhaul Pole 3 filter bank circuit breakers before the risk of failure escalates. Frequent changes of HVDC power transfer will lead to frequent switching of the new Pole 3 filter bank circuit breakers. There are a total of 5 new circuit breakers (3 at Haywards and 2 at Benmore) and they are expected to operate up to 1,000 times each year (that is, about 3 operations daily based on experience so far). The Haywards circuit breakers are 962A, 982A, and 982B in switchyard D, and the Benmore circuit breakers are 692B and 752B in switchyard B. Circuit breaker inspection is required after 3,000 operations and this will be done as part of routine maintenance, at minimal cost. After 6,000 operations, the planned circuit breaker maintenance involves disassembly and reassembly of interrupters. This planned overhaul work is in line with the manufacturers recommendations. The circuit breakers are expected to reach 6,000 operations during the RCP2 period, so a maintenance project is required for each circuit breaker. As the cost of this maintenance project for each circuit breaker is estimated to be $50,000, the total cost in RCP2 is forecast to be $250,000.
HVDC buildings maintenance projects
Carry out maintenance projects on poor-condition components of HVDC buildings.

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Based on current condition assessments and the expected degradation rate, we expect that the maintenance projects set out in Table 9 will be required in RCP2 to maintain the HVDC buildings to a reasonable and functional standard. These maintenance projects will help prevent damage to the rest of the buildings and the equipment inside the buildings.
Location Works
Pole 2 building guttering and downpipes replacement Pole 2 building guttering and downpipes replacement
Reason
The guttering and downpipes are of a poor corroded condition, including a number of leaks. The guttering and downpipes are of a poor corroded condition, including a number of leaks. To extend the life of the asset, due to corrosion and general deterioration it is necessary to mitigate roof cladding corrosion, re-coat the floor, and seal the walls.
Forecast Cost
$40,000
Haywards
Benmore
$40,000
Fighting Bay
Minor works roof, wall, floors
$135,000
Total
$215,000
Table 9: HVDC Buildings Maintenance Projects
4.5
Disposal
This section describes our strategies for disposal of assets within the HVDC asset fleet and identifies where and how these strategies relate to the higher-level strategies and objectives for the overall asset fleet. The HVDC system is a discrete unique system, so there are no opportunities for divestment.
4.5.1 Disposal Strategies

There are no major disposals expected to occur during the RCP2 period. We will continue the practice of donating retired equipment to education institutions if requested, or else recycling as much of the equipment as possible. The legacy Cook Strait submarine cables that are no longer used have been left in place because recovering the cables would be a difficult and risky task. The costs and risks would outweigh any benefits from recovery and recycling. There are no significant environmental effects from the old cables remaining in place.
4.6
Asset Management Capability

This section describes the specific strategies for obtaining and maintaining capability in managing and handling HVDC assets. These strategies provide medium-term to long-term guidance and direction to ensure that asset managers and their staff have the required capabilities in regard to the fleet. We require national Grid assets and equipment to be managed, maintained, tested and operated to high standards of skill, professionalism and safety supported by high-quality asset knowledge and risk management tools. This will ensure satisfactory and safe functioning of the network while minimising whole-of-life costs. The capability strategies are described under three headings: Risk Management
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Asset Knowledge Training and Competence.
4.6.1 Risk Management

Our approach to risk management is central to our asset management decision making as we weigh up the various costs and benefits of options such as replacement timing. We are developing asset health and criticality frameworks to improve and integrate our risk-based asset management. The strategies below discuss how we plan to progress this as regards the HVDC fleet.
Criticality
Refine the criticality framework to differentiate assets within the HVDC fleet. During RCP2 we will develop a means of differentiating HVDC assets by criticality and integrating this with our Grid-wide criticality framework. The most important criticality consideration is the risk of a bi-pole failure, which could be caused by the failure of an asset that both poles depend on.
Spares assessment
Carry out an assessment of the spares requirements and the current stock. We will carry out a thorough assessment of the spares that are required for the HVDC fleet and also check the current stock of spares. This is particularly important to the reliability of the HVDC fleet, because it includes a large number of highly specialised assets that often have long procurement lead times. This assessment will then be reviewed on a regular basis to maintain its accuracy and relevance.
4.6.2 Asset Knowledge

Robust asset knowledge is critical to good decision making for asset management.
Pole 3 asset knowledge
Develop knowledge and understanding of Pole 3 assets through direct involvement. We will have a number of engineers with ongoing on-site presence through construction, commissioning, and operation to develop robust understanding of the equipment, particularly the new Pole 3 assets.
Pole 2 Documentation
Update the Pole 2 documentation to include changes made during the Pole 3 project. After completing the HVDC Pole 3 Project, significant work will be required to update existing HVDC documentation. A new Pole 2 control system is included with the HVDC Pole 3 project, which interfaces with existing Pole 2 primary plant. The existing ABB documentation

for Pole 2 must be updated to reflect these changes. Maintenance standards and service specifications will also have to be updated after the HVDC Pole 3 project is completed. It is important to maintain high-quality documentation (e.g. Operations and Maintenance manuals, drawings) to maintain the reliability of the bi-pole system (Pole 2 and Pole 3), particularly if there is high staff turnover of skilled HVDC technicians.
4.6.3 Training and Competence

We require our assets and equipment to be maintained, tested and operated to high standards of skill, professionalism and safety to ensure satisfactory functioning of the network. We have the following service specifications that define the competency requirements for working with the HVDC fleet.8 TP.SS 06.21 Minimum competencies for substations maintenance and testing TP.SS 06.23 Minimum competencies for power system equipment operation TP.SS 06.25 Minimum requirements for Transpower field work.
Pole 3 training
Relevant personnel will undertake advanced training on the Pole 3 assets. From previous experience with the Pole 2 project it can be expected that additional training for our personnel and service providers will be required for familiarisation with the new Pole 3 after the equipment is fully handed over from the project team. This training will mostly be required for the control and protection systems.
Specialised technicians
Continue to employ specialised HVDC technicians. We have developed a team of HVDC field engineers so that there are people in New Zealand who have the skills to maintain this technically complex equipment (including power electronics assets). We will continue to maintain this team over the RCP2 period and increase the size of the team if necessary. The cost of having specialised HVDC technicians as permanent staff is much less than using service providers on an as-required basis. This is due to the highly specialised nature of the work, which means that it is a limited market without competitive pricing. In addition, the use of specialised HVDC technicians improves the reliability of maintenance and repair tasks.
Our service specifications are available upon request.
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4.7
Summary of RCP2 Fleet Strategies

Our individual strategies for the fleet of HVDC are summarised below for each lifecycle stage.
Planning
Enhancement and Development
Continue the Pole 3 project, including stage 2 in 2013/14 and the investigation of stage 3. Replace deteriorated electrode arms at the Bog Roy land electrode station at a rate of one electrode arm each year until 2018/19. Replace and refurbish Pole 2 filter bank circuit breakers before the risk of failure escalates. Replace the Pole 2 valve base electronics (VBE) and thyristor control units (TCU), without replacing the valves. Replace Pole 2 disconnectors and insulators in Haywards switchyard B.
Replacement and Refurbishment
Re-clad the roof and walls of the Oteranga Bay cable station building. Decommission an existing off-site 1,000,000 litre water tank and pipework and replace it with a new 500,000 litre tank on the Haywards site and replace water supply at Benmore. Replace the underground earthwire cables and knife switches at the Te Hikowhenua electrode station. Replace and refurbish the HVDC site buildings and grounds infrastructure and building services as required. Acquire spare capacitor cans, control system cards, and other necessary spares for the HVDC fleet.
Integrated Works Planning Cost Estimation
No specific strategies. Develop detailed desktop studies for scope descriptions and estimate cost using customised estimate process for large capital works. Cost estimates are to be developed to achieve a P50 confidence level.
Delivery
Design Procurement Delivery Planning Construction Ensure any new HVDC asset designs or innovations are appropriately managed and followed. No specific strategies. Ensure the deliverability of HVDC works through effective planning and outage management. No specific strategies.
Operations
Simulation Ratings Outage Planning Contingency Planning Apply the RTDS delivered with the HVDC Pole 3 project to help solve a range of complex dynamic scenario problems. Develop a Pole 2 thermal model and provide HVDC input data for the dynamic line rating controls. No specific strategies. Ensure there are sufficient plans, skilled manpower and emergency equipment in place to enable rapid restoration of HVDC transmission service following failure. Keep the shallow draft barge on a retainer in New Zealand waters for use in future submarine cable repairs.
Maintenance
Remove dust build-up from the Haywards and Benmore Pole 2 valve halls. Increase the level of preventive maintenance on the Pole 2 filter banks. Preventive Maintenance Undertake regular inspections of the submarine cables using divers and an ROV. Undertake a full-time patrol of the submarine CPZ by sea and air to enforce the law prohibiting fishing and anchoring in the area. Paint smoothing reactors to cover the black spots that develop. Corrective Maintenance Repair assets at the HVDC converter stations as required. All failures will be responded to in a timely manner, as determined by the criticality of the asset.
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Regular maintenance will be carried out on the Te Hikowhenua electrodes to remove build-up of calcium. Install on-line DGA equipment on the Pole 2 converter transformers at Benmore in 2014/15. Overhaul Pole 2 transformer tap changer at 450,000 operations. Maintenance Projects Evaluate the condition of tap changers on converter transformers at Haywards and Benmore. Undertake pilot inspection and condition assessment of tap changers on one Pole 2 converter transformer at Haywards and Benmore. Assess the condition of the Pole 2 asset damping systems that provide the assets with seismic protection. Overhaul Pole 3 filter bank circuit breakers before the risk of failure escalates. Carry out maintenance projects on poor-condition components of HVDC buildings.
Disposal and Divestment

Asset Disposals No specific strategies.
Capability
Refine the criticality framework to differentiate assets within the HVDC fleet. Risk Management Carry out an assessment of the spares requirement and the current stock. Develop knowledge and understanding of Pole 3 assets through direct involvement. Asset Knowledge Update the Pole 2 documentation to include changes made during the Pole 3 project. Training and Competence Relevant personnel will undertake advanced training on the Pole 3 assets. Continue to employ specialised HVDC technicians.
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Fleet Strategy - HVDC

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HIGH VOLTAGE DIRECT CURRENT (HVDC)

Document TP.FS 46.01 16/10/2013

HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

Replace Pole 2 Valve Base Electronics and Thyristor Control Units

Replace and Refurbish Pole 2 Filter Bank Circuit Breakers

Re-clad Oteranga Bay Cable Station

HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

Asset Management Policy

Asset Management Strategy

Lifecycle Strategies Planning Delivery Operations Maintenance Disposal

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2.1.1 Overview of Asset Fleet

2.1.2 Asset Population

Table 1: HVDC Asset Fleet

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2.1.3 Fleet Diversity

Table 2: Diversity of the Submarine Cable Fleet

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2.1.4 Age Profile

Nominal Life Expectancy

Table 3: HVDC Stations Age

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Nominal Life Expectancy

Table 4: Age Profile of Submarine Cables

Table 5: Examples of converter station spares

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2.2.1 Safety and Environmental Considerations

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2.2.2 Asset Criticality

2.2.3 Asset Condition

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HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

2.2.4 Maintenance Requirements

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corrective maintenance, including: fault response repairs

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HVDC Fleet Strategy TP.FS 46.01

2.2.5 Interaction with Other Assets

2.3.1 Reliability Performance

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Figure 2: HVDC Annual Availability

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2.3.2 Safety and Environmental Performance

2.3.3 Risks and Issues

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HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

HVDC Fleet Strategy TP.FS 46.01

New Zealand Communities

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Asset Management Capability

3.5.1 Risk Management

3.5.2 Asset Knowledge

3.5.3 Training and Competency