Hobart Showground facing 91 per cent power price increase as it undergoes redevelopment
The owner of the Hobart Showground says massive new bills have forced him to fast-track plans at the site, as he gives a dire warning to other businesses about incoming costs pain >>
Tasmania
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The Hobart Showground is bracing for massive power price rises over the coming years, forcing its owner to fast-track plans to make the site fully energy self-sufficient.
Royal Agricultural Society of Tasmania (RAST) CEO Scott Gadd said he had no choice but to sign a new two-year market contract with Aurora Energy that will saddle the society with a 91 per cent average price hike.
As the war in Ukraine pushes up coal and gas prices, Australia is staring down a looming energy crisis, with the 2022-23 federal budget forecasting electricity price rises of up to 50 per cent over the next two years.
The federal government has pledged to deliver price relief, while Tasmanian Energy Minister Guy Barnett has said the Rockliff government will “monitor the [power price] situation and respond further where required”.
RAST currently spends about $140,000 a year on both network and consumption charges, but is now looking at an annual bill of nearly $200,000.
The Showground is undergoing a huge three-stage redevelopment, and Mr Gadd said the price hike meant he would be expediting renewable energy projects planned for the site.
“I wouldn’t mind betting that I’m the canary in the coal mine … and that there’s a whole bunch of businesses about to get a very rude shock,” he said.
“We’re about to go into [the] construction phase. So I need to have the power here and we need to keep whatever revenue streams we can hold throughout that period alive.”
Mr Gadd said RAST was proposing to install a “gigantic” 11 megawatt battery at the Showground, as well as a 2 megawatt solar system, which together are expected to cost $10m-20m in total.
The society hopes to sell surplus energy it produces into the grid in order to pay for the significant investment in renewables.
“Not only would we be self-sufficient but we’d potentially be able to pass on better rates to some of those businesses around us if they have a mind to want it,” Mr Gadd said.
The state Opposition wants the government to de-link Tasmania from the National Electricity Market – which it says would protect the state from price fluctuations seen on the mainland – and establish an energy rebate scheme, similar to one that was active in 2017-18.
“It is about time the government announced what its plan is – especially if they are committed to not reintroducing the rebate scheme,” Labor energy spokesman Dean Winter said.
Mr Barnett said the government was establishing a new $50m loan scheme for commercial and industrial electricity customers with consumption of more than 150 MWh per year to help them invest in long-term energy efficiency solutions.
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Originally published as Hobart Showground facing 91 per cent power price increase as it undergoes redevelopment
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