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Second power interconnector under Bass Strait would end summer blackouts, key report finds

A second power interconnector under Bass Strait would provide energy security to mainland states, ending summer blackouts, a key report concludes.

An interim feasibility study is to be released in coming days and promises to propel Tasmania and its proposed second interconnector into the national energy debate. Picture: Istock
An interim feasibility study is to be released in coming days and promises to propel Tasmania and its proposed second interconnector into the national energy debate. Picture: Istock

A second power interconnector under Bass Strait, backed by expansion of Tasmania’s hydro and wind generation, would provide energy security to mainland states, ending summer blackouts, a key report concludes.

An interim feasibility study — part of a broader $20m assessment — is to be released in coming days and promises to propel Tasmania and its proposed second interconnector into the national energy debate.

Dubbed “Project Marinus”, it would deliver an additional 1200 MW that could be exported to mainland states at times of peak demand in summer; a period of low demand in cooler Tasmania.

Tasmanian state-owned power infrastructure company TasNetworks, conducting the Marinus feasibility study with co-funding from the Australian Renewable Energy Agency, said the project could avoid blackouts such as those seen in Victoria late last month.

“If there was a 1200 MW interconnector in place, as well as the current Basslink interconnector, Victoria would have not required load shedding,” said Benjamin White, TasNetworks head of stakeholder relations.

“So those 200,000-odd homes and businesses (in Victoria) would not have had to turn their power off. At the same time, South Australia would not have needed to turn on its diesel generators.

“The cost of the rolling blackout events is considered to be $1.1b across Victoria and SA.”

Early estimates suggested a second 1200 MW interconnector between Victoria and Tasmania would cost $2.5b to $3b, including upgrades to networks on both sides to accommodate the extra transmission.

The Tasmanian government is advocating a “beneficiary pays” model to fund Marinus, meaning buy-in from mainland states, as well as potentially the federal government, would be required.

“Our economic analysis suggests the bulk of the energy market benefit goes interstate; it’s not in Tasmania,” said Mr White. “And therefore the share of the costs of the infrastructure should be borne by the beneficiaries.”

While all jurisdictions would benefit, those with most to gain were Victoria, NSW and SA.

Tasmania is investigating up to 14 pumped hydro projects, constituting a combined 2,500 mw, in addition to a number of new, large wind farms under construction or planned.

Combined, these could more than double energy production in Tasmania, allowing for large-scale power exports to the mainland.

Integrated use of wind and hydro can negate the intermittency of wind. Wind generation is used when conditions suit; allowing hydro storages to build, which in turn are used when wind generation falls.

“We’re offering a product and service interstate, pushing wholesale prices down and coming good on firm, on-demand energy on to the mainland,” Mr White said.

Marinus could deliver this faster and at less cost than the Snowy 2.0 pumped hydro projects proposed for NSW, he said, although he stressed the two were not in competition.

The Marinus interim feasibility report was due for imminent release, with a final report by the end of the year.

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Original URL: https://www.theaustralian.com.au/business/mining-energy/second-power-interconnector-under-bass-strait-would-end-summer-blackouts-key-report-finds/news-story/6b4d9eb4d244cdd481d7840f010f927f