Hydro’s power paydays as Basslink cable exports energy to mainland at full capacity

The heatwave in Victoria is proving a boon for Hydro Tasmania with the electricity generator exporting power across Bass Strait and earning as much as $7 million an hour.

Basslink cable.

THE heatwave in Victoria is proving a boon for Hydro Tasmania with the electricity generator exporting power across Bass Strait and earning as much as $7 million an hour.

Acting director of Wholesale Energy Services Allan Jones said the heatwave conditions on the mainland this week had seen Hydro Tasmania, at times, exporting energy at the Basslink cable’s full capacity.

“Typically, the highest exports occur during the afternoon and evening when airconditioning load is the highest, but this can vary from day to day and week to week,” Mr Jones said.

MORE NEWS:

SURVEY UNCOVERS TASMANIANS’ TOP CONCERNS

STAFF CUTS AT SOCIAL HOUSING SITE

“We have been balancing this by also importing energy during periods when demand is lower [typically overnight or on weekends].”

Marc White, of Goanna Energy Consulting, said Tasmania had a natural advantage when local demand was relatively low and demand peaked interstate.

He said while the average spot price for energy sits around 9c-11c/kWh, at peak times the price soared as high as $14.50/kWh.

That means the Hydro could make as much as $7 million every hour — usually for a maximum period of one to two hours.

Basslink cable being fed into Bass Strait.

“You must remember that Tasmania still has a winter peak in demand but during the 2018 calendar year the Hydro exported 1.8TWh and imported 0.8TWh, for a net export of about 1TWh.”

A TWh is 1000 million kWh. Mr White said while that sounds like a lot of income, the Hydro had to pay $90 million a year facility fee to use Basslink and that contract has 12 years still to run.

Hydro Tasmania recorded a profit of $168 million for the 2017-18 financial year — well up on the $20 million recorded the year before.

Yesterday the spot price for energy in Tasmania was $14.029/kWh.

At maximum capacity the Basslink undersea cable can export 630 megawatts but its owner 9is continuing to limit its availability for exports to a maximum of 500MW.

Aerial view of Basslink's cable to the mainland.

Hydro’s total energy in storage sat at 38.4 per cent on Monday, which Mr Jones said was a very secure level for this time of year and well above the high reliability level.

The hot conditions have also bought challenges to Tasmania with 70 fires — started by dry lightning strikes — burning around the state.

“None of the fires currently burning in Tasmania are posing a threat to generation assets, and there is no threat to energy security. We continue to monitor the situation,” Mr Jones said.

REX GARDNER: FACING A SINISTER ENEMY

WARNINGS OVER CENTRAL PLATEAU FIRE

Basslink put a limit on Basslink’s capacity in late 2017 after the measure was recommended by a report commissioned after its failure in 2015 plunged Tasmania into an unprecedented energy crisis that cost the Government $180 million to secure supply.

The feasibility of building another cable between Tasmania and Victoria is now being considered.