*Pic: Lake Gordon from the summit of The Wedge, by Daniel Patman, Flickr
The preliminary report to the Australian and Tasmanian governments is now publicly available for viewing.
The preliminary report sets the context for the feasibility study, discusses a range of key issues and outlines what Mr Smith sees as the fundamental questions and considerations to be addressed over the next six months, as he develops his final advice.
Feasibility of a second Tasmanian interconnector – Preliminary Report (PDF 4.1MB) ( http://industry.gov.au/Energy/Documents/Preliminary-Report-Feasibility-of-a-second-Tasmanian-interconnector.pdf )
Submissions for this preliminary report are invited, and will be accepted until 30 September 2016. Submissions can be made to the taskforce who can be contacted at:
Extract from Preliminary Conclusions, p.38, in the Preliminary Report June 2016:
“My preliminary conclusion is that, if viable, a second interconnector would support long term energy security in Tasmania, assist in the integration of Tasmanian renewable energy into the NEM, support the operation of the NEM and could open the path way for more than 1000 megawatts of new renewable energy development in Tasmania.
Given these opportunities, one of my interim recommendations is that the Australian and Tasmanian Governments should commit to supporting a second interconnector, subject to my final report demonstrating there is a likely long term benefit to consumers from its development.
In making this judgement I acknowledge that there are a complex set of benefits, challenges and risks that are in play. These will need to be closely considered to better understand the prospects for, and interplay between, the case for proceeding with developing a second interconnector and the development of the Tasmanian renewable energy industry, compared to other options for how the NEM might evolve.
Over the next six months my taskforce and I will work closely with the Australian and Tasmanian Governments, AEMO and the CEFC in order to develop credible future scenarios of how a second interconnector might be developed.
Detailed modelling will be undertaken of these future scenarios to understand underlying electricity market dynamics and to support exploration of associated regulatory, financial and business models.
Based on this work, my taskforce and I will then assess the feasibility of a second interconnector through the dimensions of:• Its potential role in facilitating the potential development of large-scale renewable resources in Tasmania
• Its contribution to energy security in the NEM, including Tasmania; and
• The long- term costs and benefits to consumers, both in Tasmania and the NEM more broadly, with the aim of addressing the requirements of the Australian and Tasmanian governments for this study, as set out in the Terms of Reference.
I will also examine the related parallel case for how to best use and develop Tasmania’s large scale renewable energy resources, considering both the case for this investment with and without a second interconnector in place.
As noted earlier in this report, the feasibility of a second interconnector and any associated renewable energy development are closely linked. Investment in a second interconnector will likely be contingent upon extensive investment in supporting renewable energy development, which in turn will be dependent on the interconnector proceeding. These linkages will need to be closely explored, in particular to better understand likely sources of financing and the sensitivities of potential financiers.
I expect that input and feedback from the CEFC will be invaluable as I develop this aspect of the report. More generally, the CEFC can play an important role both in this work and any related business cases for the interconnector, associated renewable energy investment and for any supporting hydro related investment and I am of the view its financial expertise and resources should be utilised more.
There are close links between this study and other complementary reviews underway, including the activities of the Tasmanian Energy Security Taskforce and work underway by the Tasmanian Government in conjunction with Hydro Tasmania to consider the feasibility of a second interconnector.
My work will be complementary to, however distinct from, these efforts, through the national perspective I intend to bring to my analysis. In order to best coordinate and leverage related efforts, I will work closely with the Tasmanian Energy Security Taskforce to integrate, where appropriate, key work streams of mutual interest and will draw on the work of Hydro Tasmania in informing my final report.
In alignment with the work of the Tasmanian Energy Security Taskforce, and as requested, I will provide my final report to the Australian and Tasmanian Governments in December 2016. While this will be soon after the Tasmanian Energy Security Taskforce completes its interim report in November 2016, I am confident that the study’s findings and recommendations will be highly valuable as a key input to the Taskforce as it considers its final report, which is due to the Tasmanian Government around the end of May 2017.”
From HERE:
http://industry.gov.au/Energy/Pages/Tasmanian-Energy-Taskforce.aspx
• Pete Godfrey in Comments: Does anyone else find it strange. The politicians decide that it is a good idea, and whammo out comes a flaky report saying just that too. I wonder where the donations came from to push for this thought bubble. It was Basslink that caused our recent lack of supply, now we are supposed to think another cable will fix the problem. Hopefully this cable will go via one of the islands such as King or Flinders, drop some power off there on the way and also facilitate easier fault finding next time a ship drops anchor or dredges up the cable.
• Jack Gilding in Comments: Note that Warwick Smith has departed this role. See “Tasmania power blow as Warwick Smith suddenly resigns review role”, Matthew Denholm, The Australian, 15 Aug 2016 ( HERE (if you can get through News Corp paywall). To the best of my knowledge the inquiry will continue. It is worth making submissions, including raising the question, “If we had a billion dollars to increase Tas Energy Security, would another interconnector be the best way to invest it?”
