Electricity Distribution Price Review Network Hardening Business Case

This document is a business case for network hardening aimed at enhancing resilience in the AusNet electricity distribution network, which serves approximately 809,000 customers in eastern Victoria. It details the significant risks posed by extreme weather events and climate change, which have led to multiple prolonged outages. The business case outlines the investment strategy for network hardening, supported by a comprehensive analysis of climate change risks and historical outage data. Various options for rollout are assessed, including a 'do-nothing' scenario, and three different rollout percentages: 25%, 35%, and 100%. The preferred option is identified based on the highest Net Present Value (NPV) calculated from the costs and benefits of each option. The document also discusses the methodology used for risk modeling, including the Climate Resilience Economic Model developed by an independent third party. This model evaluates the expected unserved energy and quantifies the benefits of the proposed interventions in terms of improved network reliability and reduced outages.