Libs hail bid to power up new Basslink

THE listing of a second Bass Strait power cable as a priority nation-building proposal has been hailed by the State Government as a win for its energy plan while Labor has called on Canberra to “show us the money”.

The case for a another $1 billion electricity interconnector between Tasmania and Victoria was given a major boost this week when the project was listed by Infrastructure Tasmania as one of five proposals in this state seen as nationally significant.

Franklin MP Julie Collins said the May Federal Budget would be an ideal opportunity for the Government to fund some Tasmanian priorities.

Energy Minister Guy Barnett yesterday labelled the cable project’s listing as “another win for the Government’s Tasmania First energy plan” under which the State would run on 100 per cent renewable energy by 2022.

Excess energy would be sold to the mainland and the profits returned to Tasmanians through lower power prices.

“A second interconnector will help achieve that as well as further enhancing energy security,” Mr Barnett said.

He also revealed the Government is seeking $122 million in damages from Basslink over the extended power cable outage in 2015. Government lawyers have formally lodged a notice of dispute with Basslink Pty Ltd, claiming damages.

Mr Barnett said the notice of dispute detailed expenses in mitigation of losses incurred as a result of the outage, totalling $122 million. The matter will now progress through a dispute resolution process, which may lead to arbitration.

A business case for the second cable is being developed by TasNetworks and the Australian Renewable Energy Agency and is due to be completed later this year. The Tasmanian Liberal team — Senators Eric Abetz, Richard Colbeck and Joanthon Duniam — said a second interconnector would allow Tasmania to become Australia’s “battery” while ensuring the state had back-up if the primary interconnector were to fail as it did in 2015.

Ms Collins says the Turnbull Government needed to stop dragging its feet and commit to funding new infrastructure in Tasmania.

“The Government’s own Budget papers show federal infrastructure investment in Tasmania will decline from $174 million this financial year to $53 million in 2019-20. Everything on the priority list has been there for some time,” Ms Collins said.

Other than the Bass Strait cable, other initiatives listed as priorities were an upgrade of Tasmania’s sewerage infrastructure and establishing a road and rail freight corridor between Burnie and Hobart.