Tassie in energy box seat, says MP

TASMANIA’S abundant renewable energy would provide the state with a significant opportunity under the Turnbull Government’s National Energy Guarantee, Energy Minister Guy Barnett says.

The COAG energy council met yesterday and agreed to progress to a detailed design of the NEG.

“A well-designed National Energy Guarantee can deliver significant opportunity for Tasmania because of our abundance of renewable energy, particularly hydro generation,” Mr Barnett said.

But he said there was a lot more work to do to protect and promote Tasmania’s interests.

Mr Barnett said COAG had agreed to prioritise work on the transmission system.

“This would strengthen the case for a second Bass Strait interconnector and underpin our Battery of the Nation ambition, unlocking major investment in renewable energy projects and more jobs in Tasmania,” he said.

Hydro Tasmania is looking to develop up to 15 pumped hydro sites and increase generation capacity by 2500MW to 5000MW.

Federal Energy Minister Josh Frydenberg said: “Modelling undertaken by the Energy Security Board shows that wholesale electricity prices will decrease by 23 per cent under the guarantee, flowing through to households and businesses.’’

But it appears the NEG will have little effect on Tasmanian prices because the State Government is set to legislate to cap power prices at the consumer price index (CPI) for the next three years.

It has also promised to unlink Tasmania from the National Electricity Market in terms of prices.