Media release – Hydro Tasmania, 1 August 2022
Energy storages secure amid historic low rainfalls
Hydro Tasmania’s highest priority is managing water storages in light of historic low rainfalls, which will provide Tasmanian homes and businesses with a secure and reliable energy supply.
Due to an extremely dry summer and autumn, Hydro Tasmania’s storages are lower than usual for this time of year. Despite storages steadily increasing over recent weeks, the total energy in storage figure of 32.7 per cent has crossed the Prudent Storage Level today.
Tasmania’s Energy Security Framework includes measures to monitor energy security during drier periods, including the High Reliability Level (HRL) and above that, the Prudent Storage Level (PSL). Tasmania’s energy storage position remains secure, and Hydro Tasmania – working closely with the State Government – is actively managing water storages.
Generation Manager, Jack Penny, said the Framework was introduced following the 2016 energy supply challenge to help manage storage security.
“We’ve had the driest summer to autumn period on record and unseasonable low rainfalls in July, so our storages are lower than usual at this time of year,” Mr Penny said. “Dropping below the PSL is not cause for alarm – storages crossed the threshold in 2019, and Hydro Tasmania adjusted its operations accordingly to maintain water storages.
“This is exactly how the Energy Security Framework is supposed to operate.” Hydro Tasmania is preserving storages. As a result, Tasmania is importing more energy and exporting less. If required, the Combined Cycle Gas Turbine (CCGT) at the Tamar Valley Power Station can be brought online.
More information on the Energy Security Framework can be found on Hydro Tasmania’s website https://www.hydro.com.au/clean-energy/secure-energy.
Background
The total aggregate amount of water in our storages is known as Total Energy in Storage (TEIS). It’s the headline storage figure you often hear. Tasmania’s energy security is measured by comparing the storage figure against the High Reliability Level (HRL). As the name suggests, this figure represents a level where we have high reliability of energy supply – at this level, even with very dry weather AND a six month Basslink outage, we would still have enough energy in storage to meet Tasmania’s needs over that six month period.
The HRL is reviewed and updated as more generation is built in Tasmania. It was recently downgraded to reflect new wind farms coming online, which makes sense because having more sources of energy generation means we are less dependent on hydropower and need less ‘water in the bank’. Above the HRL is another line – the Prudent Storage Level (PSL). The gap between the two lines is effectively a ‘buffer zone’. There’ll be times when storages drop below the Prudent Storage Level – for example, during drier than usual seasonal conditions. That isn’t a big deal. It’s just an early indication that we may need to take some steps – for example, generating from gas or importing more energy for a short time – to avoid dropping further towards the HRL.
Media release – Guy Barnett, Minister for Energy and Renewables, 1 August 2022
Winter and Labor out of their depth on dam levels and energy security
Today’s announcement by Hydro is another demonstration why Tasmania must remain in the National Energy Market.
After one of the driest winters on record, Hydro Tasmania has adjusted its energy generation profile for the coming months and is prudently managing its water resources.
This is a sensible and conservative approach that will ensure dam levels are maintained appropriately and will result in Basslink being used more to maintain its storage levels during this time, which we support.
Importantly, there are no concerns with Tasmania’s energy security and Tasmanians can continue using energy as they normally would.
Hydro Tasmania’s dam storage levels are actively monitored against benchmark storage levels, which was an additional safeguard put in place following significant challenges to Tasmanian energy supply during 2015-16 – and the system is working.
This is exactly why Tasmania remains connected to the NEM – to safeguard against adverse weather events such as this, not to mention the immense opportunities it allows in terms of jobs and investment.
Dean Winter should admit Labor’s policy to delink from the National Energy Market belongs in the past and shows he is totally out of his depth in this portfolio.
He should also stick to the facts. This calendar year Tasmania has been a net importer of energy and not exporting heavily as falsely claimed by Mr Winter.
Media release – Dean Winter MP, Shadow Energy Minister, 1 August 2022
Government must provide Parliament with energy security update next week
It was only a few years ago when the Tasmanian Liberal Government almost blacked out the state. Tasmanians are right to not trust this government with energy security.
Hydro Tasmania has today disclosed that it has drawn dam levels down below the Prudent Storage Level.
This is a regulated level updated by Energy Minister Guy Barnett only last year – supposedly to protect Tasmania’s energy security.
While it is true that rainfall has been lower than expected, it also true that Hydro Tasmania has been heavily exporting since the national energy crisis commenced.
It is extraordinary that Minister Barnett has allowed this to occur less than a year after he made the Energy Co-ordination and Planning Order 2021.
We have had warnings from AEMO around Tasmanian energy security for both gas and electricity – with Minister Barnett being unwilling to provide any detail on how Tasmania plans to mitigate these risks.
Minister Barnett must make a Ministerial Statement to outline Tasmania’s energy security situation in Parliament next week.
