Cable to bring jobs and dollars across the strait

Second interconnector means security and investment,

AUSTRALIAN

summer electricity challenges further cement the case for Tasmania to become the Battery of the Nation and highlights our value to the National Electricity Market.

In late January, more than 200,000 Victorian homes and businesses had their power cut or limited as electricity supply buckled under extreme heat.

Tasmania played a key role in helping to keep the lights and air conditioners on in Victoria, delivering power through Basslink.

However, our ability to help the mainland is constrained by the limited size of that single Bass Strait interconnector.

A second interconnector would have proven invaluable, with Tasmania’s capabilities having the potential to avoid rolling outages in the state.

In November 2017, the Tasmanian and Australian governments approved funding for Project Marinus, a feasibility and business case assessment into connection across Bass Strait.

A second interconnector would allow Tasmania to increase renewable energy to the national grid, increase energy security and deliver a significant injection into the Tasmania economy, in addition to the billions in investment and thousands of jobs Tasmania could see through further wind and pumped hydro investment.

Further interconnection would help provide a backup for Tasmanian and mainland customers and play an important role in supporting future National Electricity Market (NEM) needs.

In a move applauded by Tasmanian business groups, Infrastructure Australia last week added a second interconnector from Tasmania to Victoria to their 2019 Priority List, having previously announced “Marinus” forms a part of a suite of critically important NEM initiatives.

The interconnector was cited as one of the medium to long-term opportunities to boost connectivity and reliability of the NEM.

In March last year, the Australian Energy Regulator released a report on wholesale electricity prices following the closure of Hazelwood power station in Victoria.

It highlighted the price impacts on the NEM of recent and forecast closures of coalfired power stations, and gaps in the amount of dispatchable energy available in the market.

These reports highlight the value of interconnection, with the potential for Tasmania to offer hydro-electricity, pumped hydro energy storage and wind generation to the NEM, particularly to Victoria, which has recently become a net electricity importer.

Tasmania’s combined energy solutions are regarded as cost competitive against all other realistic options.

The Energy Security Board listed Tasmania’s North-West renewable energy zone as one of four critically important ones across the NEM.

Tasmania has what the rest of the nation needs, and pumped hydro is one of the best technologies available for low-cost, reliable clean energy.

Tasmania’s Battery of the Nation project has identified 14 potential pumped hydro sites that could support the NEM, double our energy capacity and provide billions in investment and thousands of jobs in Tasmania.

Developing these opportunities will help meet the aims of the Hodgman Liberal Government’s Tasmania First energy policy by guaranteeing energy security, putting downward pressure on prices and creating a huge economic boost while helping bolster the rest of the nation.

We have a target of the lowest regulated electricity prices in the nation and for the state to become self-sufficient in renewable energy by 2022.

We look forward to working with the Australian Government on progressing new energy developments in Tasmania, supported by a second interconnector.

A second interconnector is critically important to energy challenges facing the nation.