Snowy 2.0 to help cut power risks
MALCOLM Turnbull’s bold plan for a Snowy Hydro 2.0 power station has been given the tick of approval as the health of Australia’s energy grid has been assessed as “critical”.
A feasibility study, to be released today, says the pumped hydro project will future- proof the National Electricity Market ( NEM), help stabilise the system and deliver lower prices.
It comes as the Energy Security Board issued a stark warning about the health of the electricity network, amid rising power prices and demand from Queenslanders for electricity at peak levels. Among its findings were: • Household power bills are unaffordable and have increased by between 80 and 90 per cent over the past decade.
• The risks of the system being unreliable are increasing and face its biggest challenge since 1990s.
• Future carbon emissions policy is uncertain.
The main threat to the system is the lack of new dispatchable power coming online at the same time more intermittent renewable sources are increasing.
When power is needed to be dispatched, normally the operators with the lowest bids are given preference. But operators are increasingly being ordered to stay online, meaning they are being dispatched out of the “price merit order”, leading to the soaring power bills.
“The requirement for efficient prices and affordability is essential for a ‘ healthy NEM’. Its ‘ health’ is critical,” the report said.
The Snowy Hydro project would provide dispatchable power and involve building tunnels between the Tantangara and Talbingo reservoirs, expected to add another 2000 megawatts of capacity.
It is expected to create up to 5000 jobs and has been assessed as technically and financially viable in the business case.
Environment Minister Josh Frydenberg said a number of government plans would deliver stability in years ahead.