FEDERAL Lyons MP Eric Hutchinson says that, when it comes to renewable energy, Tasmania should be looking at the big picture need for a second Bass Link cable.
Mr Hutchinson said today that most Tasmanians supported renewable energy.
“Tasmania is blessed with the capacity to generate enormous amounts of renewable energy from a diverse range of sources whether it’s hydro, solar, wind, wave, tidal, geo-thermal or bioenergy,’’ Mr Hutchinson said.
“Hydro Tasmania is Australia’s biggest producer of renewable energy so it simply makes good sense for Tasmanians to be supportive of renewable energy.”
The Federal Government has recently lifted renewable energy targets from 20 per cent of renewables to about 23.5 per cent by 2020.
It has also removed a mandatory two-year review process put in place by Labor and the Greens a couple of years ago.
“This means that there is certainty in the sector long term to encourage people who are considering investing,” he said.
Mr Hutchinson said that the Renewable Energy Target (RET) supported construction of wind turbines and roof top solar while the Clean Energy Finance Corporation was always designed to encourage investments in technology including those not already proven.
“In the case of wind, it’s the cheapest of the renewables so there is no difficulty getting finance – the market will fund wind development as we’ve seen with Musselroe and Woolnorth,” he said.
“But this is all academic in Tasmania in terms of increased investment because we are constrained in what we can send off the island without a second Bass Link cable.”
Mr Hutchinson said that the energy conversation which Tasmanians should be supporting was how the state could raise the capital to install a second Bass Link cable to enable competitive energy export.
“As a Federal MP, I would support State Government moves for a second Bass Link cable,” he said.
NSW has successfully leased its energy transmission assets with a mandate from the NSW people and this might be an option for Tasmania to consider as a way of funding major new infrastructure like a second cable, Mr Hutchinson said.
“NSW was also supported by additional funding available from the Federal Government for asset recycling,” he said.
“An option like this would enable Tasmania to reinvest in transmission assets such as a second cable.
“ It was great news a couple of weeks ago from Comalco, at Bell Bay, that it would increase its offtake of electricity by an additional 10 per cent and you would have to believe that Nyrstar will increase their demand for renewable energy with its investment announcement this week, which is fantastic.
“But the reality is that without the capacity for off island export via a second Basslink cable energy investment will be constrained.
“That’s the conversation we need to be having.”
FEDERAL Lyons MP Eric Hutchinson
