Uncosted new works needed for Labor power plan

The state’s electricity transmission company has revealed up to a $150m hole in Labor’s cutting edge Hydrogen electricity generator, the state government says.

A “black hole” of up to $150m is hidden in Labor’s flagship election promise to build a hydrogen power plant at Whyalla, the State Government says.

Treasurer Rob Lucas says Labor’s costings for the $593m plant do not include funds for required upgrades of transmission lines and towers owned by private company ElectraNet.

But Labor insists the upgrades are not needed.

The government has seized on the potential extra cost, which was revealed in a submission by ElectraNet to the federal Australian Energy Regulator.

An artist's impression of Labor's proposed $593m hydrogen power station. Picture: Supplied

ElectraNet states in the submission that as a “contingency plan” $50m to $150m in upgrades would be needed if any additional power must go in or out of the area around Whyalla.

The company’s infrastructure spending must be approved by AER as it is recouped via customers’ power bills. ElectraNet flags that extra power going into the grid at Whyalla would cause transformers to “exceed their thermal limit of 200MW”.

“Labor’s plan would easily trigger this upgrade at a cost of up to $150m,’’ Mr Lucas said.

“(Labor Leader) Peter Malinauskas’s failure to check with anyone about the capacity of the line out of Whyalla makes a mockery of claims he is ready to lead South Australia. He could have just Googled it. Labor represents a massive risk to your taxes and your power bills – because someone will need to pay for this $1.2bn white elephant.”

Treasurer Rob Lucas says Labor’s plan is a “white elephant.” Picture: NCA NewsWire / David Mariuz

But on Tuesday Labor said it had sought – and been given – assurances by ElectraNet that its hydrogen power plant would not trigger the spending upgrade.

Labor spokesman Tom Koutsantonis said there were two transmission lines in and out of Whyalla.

“If it was a smaller (power) generation it would be connected to the 132kV line and would trigger an upgrade, but the size of our project would connect to the 275kV line and that would not,’’ Mr Koutsantonis said.

“I completely dispute what the government has said.”

Labor MP Tom Koutsantonis says he completely disputes the government’s assertions. Picture: NCA NewsWire / David Mariuz

The Advertiser contacted ElectraNet in the hope of settling the election dispute but a company spokesman said “we’re unable to comment at this stage”.

Labor has billed the hydrogen plant as a linchpin of its economic strategy, as a way to cut wholesale electricity prices to businesses, while being paid for by taxpayers.

The Liberals argue Labor has massively underestimated the cost of the hydrogen gas liquefaction process.

They claim this – and the ElectraNet revelations – would take the cost of the project to $1.2bn.