Tasmania could become ‘battery of the nation’, report suggests
It could provide 20pc of dispatchable electricity needs at 20pc less than the cost of relying on gas, a report suggests.
Tasmania could become “the battery of the nation”, providing 20 per cent of dispatchable electricity needs at 20 per cent less than the cost of relying on gas to replace declining coal generation, a report suggests.
Commissioned by the Australian Renewable Energy Authority, the study released today finds a massive expansion of Tasmanian generation — via upgraded hydroelectric schemes, new pumped hydro and new wind — could play a key role in national energy security.
Combined with up to five cable interconnectors to export power to the mainland, it finds Tasmania could “meet 20 per cent of the total need for dispatchable capacity through to 2040”.
While authored by Hydro Tasmania, which could be said to have a vested interest as it pushes the cause for a second interconnector under Bass Strait, the report was hailed by ARENA as proving Tasmania could play a “significant” role.
“Tasmania’s vast pumped hydro and renewable energy reserves place it in a great position to increase capacity to the National Electricity Market,” said ARENA chief executive Ivor Frischknecht.
“As renewable energy grows to comprise a larger percentage of the nation’s electricity the importance of storage for reliability also increases. (Tasmania’s) ‘Battery of the Nation’ (concept) has the potential to provide for the future needs of the NEM.”
Tasmania, home to the Roaring 40s winds, has vast untapped wind generation potential. If used in conjunction with hydro-electrical storage, this could provide increased dispatchable energy.
On Wednesday, a separate report identified 14 “high potential” sites for pumped hydro plants at existing Tasmanian dams, with a combined potential capacity of up to 4800MW, and a cost below or comparable to that of Snowy Hydro’s pumped hydro plans.
The $500,000 Future State NEM analysis report released today is part of a $2.5 million investigation into the feasibility of Tasmania’s “Battery of the Nation Project”.
ARENA has also committed $10 million to a technical and commercial feasibility study for a second interconnector between Tasmania and the mainland.
A fault in the existing Basslink cable plunged Tasmania into an energy crisis in 2015-16, while a further extended outage was only resolved this week.
Hydro Tasmania chief executive Steve Davy said the latest analysis showed the Battery of the Nation concept “stacks up very well” and could put “downward pressure on Tasmanian and mainland prices”.
“Initial modelling shows these opportunities can reduce national reliance on open cycle gas generation for capacity,” Mr Davy said. “This is because flexible hydropower can be used more for system capacity support.
“This could translate to a 20 per cent reduction in energy costs and an additional reduction of up to 9 million tonnes of greenhouse gas emissions per year.”