New energy pipeline from Tasmania could boost renewables investment

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This was published 6 years ago

New energy pipeline from Tasmania could boost renewables investment

By Cole Latimer
Updated

Tasmania is partnering with the Australian Renewable Energy Agency (ARENA) to begin work on a study for a second energy pipeline between the state and the mainland, creating new opportunities for renewables investment.

The pipeline across the Bass Strait would allow Tasmania to supply increased levels of renewable energy to Victoria, and encourage the development of more renewable energy generation, providing additional backup energy supplies for the National Electricity Market.

It comes the same day as the Coalition of Australian Governments gathers in Tasmania to discuss the National Energy Guarantee, which will set out measures to increase Australia's energy security, and is seeing pressure to include a greater percentage of renewable energy under its auspices.

Tasmania's major energy supplier Hydro Tasmania's chief executive Steve Davy said that as the east coast faces an energy crisis, the need for a second energy pipeline was only increasing.

The second energy pipeline will increase opportunities for investment in renewable energy in the state by opening up the market.

The second energy pipeline will increase opportunities for investment in renewable energy in the state by opening up the market.

"More interconnection will signal that Tasmania's own energy security is beyond assured, and the rest of Australia can benefit from our surplus of clean electricity," Mr Davy said.

TasNetworks chief executive Lance Balcombe told Fairfax Media the study is a major step in establishing the economic viability of another pipeline.

Mr Balcombe said a second pipeline will encourage additional renewables investment in Tasmania, particularly wind generation in the state's north-west, as it will open the market further for Tasmanian energy.

"TasNetworks is excited to work with ARENA to explore the potential for a second interconnector which could unlock huge potential for Tasmania to become a major energy exporter," Mr Balcombe said.

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He said due to the complexity of the project, the study will likely run between one and two years.

"However, much work is required to finalise the scope and secure funding from ARENA during the first quarter of 2018," he added.

ARENA chief executive Ivor Frischknecht stated that this study will have national impact, advancing Australia's transition to more renewable energy and ensuring reliability of supply.

"These scoping studies are the first step towards increased interconnection between Tasmania and the mainland which could ultimately deliver secure and reliable energy to millions of Australian consumers," Mr Frischknecht said.

Tasmania, unlike the majority of other Australian states and territories, has no coal-fired power generation, with energy produced via wind, solar, gas, and hydro-electric generation.

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The $20 million study will expand the earlier Tamblyn review into the economic potential of a second energy pipeline, and use findings from Hydro Tasmania's 'Battery of the Nation' research to justify its construction.

The Battery of the Nation concept aims to have Tasmania provide additional peaking and intermittent power to the east coast's grid through pumped hydro storage usage.

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