The power of renewal
BOLD vision often pays off in the long term but it is never without risk. Modern Tasmania enjoys the benefit of bountiful renewable energy, the dividend of investments made in hydroelectric infrastructure mostly made during the post-war period. The state government is pinning its hopes on the Marinus Link cable project similarly transforming the state’s energy — and economic — future.
The $3.5 billion proposal involves the construction of twin 750-megawatt cables from northern Tasmania to Victoria, plugging the state even more firmly into the national electricity grid. The intention is that the cables will bolster the export of Tasmania’s excess hydro energy — which will be grown via pumped hydro and new wind farm projects coming online.
At a time when renewable energy is at a premium, Tasmania is lucky to have a bounty of wind and water, but we need to make the most of that good fortune.
Labor and the Greens have raised questions about who will pay for the construction of the cables and who will own them into the future, something that has yet to be determined. A lot of work has been done on the financial viability (as well as the technical feasibility) of the twin cables, so it is to be hoped that there would be no great difficulty in attracting private investment if that is determined to be the appropriate model. It is also possible that governments might also see the cables project as an attractive investment in a
AT A TIME RENEWABLE ENERGY IS AT A PREMIUM, TASMANIA IS LUCKY TO HAVE A BOUNTY OF WIND AND WATER, BUT WE NEED TO MAKE THE MOST OF THAT GOOD FORTUNE
regulated market or some mix of government and private money.
The 2020s are a time of uncertainty and of rapid change and the world’s energy markets reflect that. The state can draw on the experience of Basslink — the existing 500-megawatt interconnector which was built in 2003 — which includes a lengthy outage and accompanying drought which nearly saw the lights go out. But there remain major unknowns around the supply of electricity from the ageing coal-fired generators which dominate in the mainland states and there is uncertainty around the future of the major local electricity users who account for an outsize share of onshore consumption.
The government is pursuing Marinus Link at the same time as it also eyes growing Tasmania’s share of the green hydrogen market — also using energy from hydro and wind projects.
Only the passage of time will tell whether it is a case of not putting too many eggs in the one basket — or of having too many balls in the air.
Tasmania has shown a world-leading approach to energy over an extended period. Marinus Link is a bold and evolving vision but it is not beyond our reach. Of course, it is not without risk, risk which will exist in various forms over not just the construction phase but over the entire life of the project. But against those risks, there is the possibility of long term reward: in terms of jobs and investment, energy security, export and investment income and in playing our part in reducing the nation’s carbon footprint plus benefits we may not yet foresee. The risks will need to be managed, but just as in the postwar hydro-industrialisation push, the opportunities for the state seem too great to be ignored.
Responsibility for all editorial comment is taken by the Editor, Jenna Cairney, Level 1, 2 Salamanca Square, Hobart, TAS, 7000