Sites earmarked for Tasmania’s $5b pumped hydro project

THE Tasmanian Government’s $5 billion Battery of the Nation vision is charging forward with the identification of 14 high-class pumped hydro opportunities in the state.

THE Tasmanian Government’s $5 billion Battery of the Nation vision is charging forward with the identification of 14 high-class pumped hydro opportunities in the state.

Premier Will Hodgman, Energy Minister Guy Barnett and Federal Energy Minister Josh Frydenberg will reveal today that the sites have a potential capacity to generate 4800MW.

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The potential of the identified sites, which are located in Tasmania’s Central Highlands and on the North and West Coasts, is higher than initially anticipated.

It is understood initial studies have found that the development costs per megawatt of Tasmanian pumped hydro is competitive with the Snowy 2.0 scheme championed by Prime Minister Malcolm Turnbull.

Fourteen Hydro sites across the state have been identified as having potential for pumped hydro power stations.

Premier Will Hodgman said the project was a leap forward for jobs, investment and energy security in Tasmania.

“Tasmania’s pumped hydro scheme has the potential to be this generation’s version of the historic hydro-electric development” Mr Hodgman said.

“This is state-building and nation-leading, and will cement Tasmania’s position as the country’s clean, reliable and affordable energy powerhouse.

“Early modelling shows the construction could create up to $5 billion of investment and around 3000 jobs in regional Tasmania over 10 to 15 years.”

Hydro Tasmania will now commence in-depth investigations into the 14 proposed opportunities across eight sites to establish which ones could best provide the equivalent of about 2500 megawatts of power.

Australian Renewable Energy Agency CEO Ivor Frischknecht, left, and Hydro Tasmania CEO Steve Davy at the Cethana Power Station last September. Picture: CHRIS KIDD

The renewable energy generated by pumped hydro is required over the next decade to fill the void created by the closure of coal-fired power stations such as Hazelwood in Victoria and Lidell in NSW.

Pumped hydro, combined with extensive wind farm development in the state, is contingent on a second Bass Strait interconnector which is believed to cost in the vicinity of $1 billion and take up to seven years to realise.

Energy Minister Guy Barnett said the studies strengthened the case for the second interconnector.

“This report is compelling evidence in support of further interconnection to help drive down energy prices and underpin our growing economy,” Mr Barnett said.

He said pumped hydro offered the chance to double Tasmania’s energy supply by 2033 while delivering thousands of new jobs and low-cost clean energy.

Mr Frydenberg is pushing for all states to back a National Energy Guarantee which is aimed at meeting emissions standards and increasing reliability of supply.

HOW PUMPED HYDRO WORKS

Pumped hydro storage systems have an upper reservoir and a lower reservoir. The water is stored in the upper reservoir and run through a turbine, thereby generating electricity, to a lower reservoir when electricity is needed — such as when the sun is not shining or the wind is not blowing.

The water can be pumped back uphill to the upper reservoir for storage when there is excess electricity in the system — such as when the wind is blowing strongly at a time of low demand.