Media release – Nick Duigan, Minister for Energy and Renewables, 8 August 2024
Securing Hydro for the future
Tasmania’s energy fleet is being safeguarded for the next ten years with Hydro Tasmania releasing its 10-year $1.6 billion vision to modernise its hydropower network.
The increased investment secures Hydro’s position as a Tasmanian powerhouse that drives jobs creation and economic growth into the future.
Minister for Energy and Renewables, Nick Duigan, welcomed Hydro’s announcement that would prepare the state for a new era of hydropower.
“The Tasmanian Hydro had been cornerstone of Tasmania’s economic growth over the past century,” Minister Duigan said.
“With Tasmanian energy consumption predicted to continue to grow, we can’t afford to reduce our hydro generator fleet. We need it well maintained, while being safe and reliable to ensure our state has the energy it requires into the future.
“That is why this announcement to invest in the backbone of the state’s energy generation is important. This 10-year investment will ensure that Tasmanian’s Hydro generation continues to drive the state’s economy and jobs into the future.
“The significant investment will build on the important construction at Tarraleah and Cethana with further upgrades to be undertaken at 11 power stations and 5 dams.
“This long-term vision acknowledges the years of engineering and logistical planning required to deliver this scale of works.”
Under the Tasmanian Government’s Tasmanian First Energy Guarantee Policy – announced in the 2030 Strong Plan for Tasmania’s Future, we have already rewritten Hydro Tasmania’s charter and returned Hydro to its foundational principles: putting Tasmanian prices and Tasmanian jobs first.
“This 10-year plan will ensure that Hydro’s focus is firmly on supporting the lowest possible power prices for Tasmanians, while also producing low-cost renewable energy for Tasmanians, supporting the Tasmanian economy and jobs,” Minister Duigan said.
Media release – Hydro Tasmania, 8 August 2024
$1.6b to modernise infrastructure for ‘new era of Tasmanian hydropower’
Hydro Tasmania will invest $1.6 billion over the coming decade to upgrade and modernise its existing hydropower network.
CEO Ian Brooksbank today (Thursday) laid out the forward plan for capital works, including major refurbishments across 10 power stations and five dams.
“These works will extend the operational life of our power stations, improving capacity, reliability and flexibility.
“That means we’ll get more energy out of every drop of water, and we’ll be more responsive to fluctuations in demand.
“This will help us to support wind and other renewables in a modern energy system.”
Mr Brooksbank said the capital works complemented plans to redevelop the Tarraleah Hydropower Scheme and to build pumped hydro at Lake Cethana.
“Our incredible hydro network has played a significant role in fuelling Tasmania’s economic growth.
“But it can’t stand still in time. We must invest in our infrastructure for a new era of Tasmanian hydropower that will help meet the state’s energy demands now and in the future.”
The $1.6 billion investment is in addition to the approximately $100m it costs to operate and maintain the fleet every year.
Mr Brooksbank said major upgrades at Gordon and Poatina were underway, with all works carefully timed and coordinated.
“The mighty Gordon and Poatina Power Stations are the biggest in our network, with capacities of 432MW and 360MW respectively.
“Works of this scale take years of engineering and logistical planning, especially when you consider they are occurring deep underground.
“A big shout out to the team at Gordon who just lifted the 173-tonne stator. This is the heaviest lift we do and it’s a rare event involving two cranes and millimetre-level precision.”
Media release – Institute for Energy Economics and Financial Analysis (IEEFA), 8 August 2024
Pumped hydro proposals could see taxpayers financing mine rehabilitation
Pumped hydro projects are being proposed as a post mining use for the large holes left after open-cut mining, but new research from an independent think tank suggests governments – and taxpayers – should be wary.
The Australian mining sector faces a challenging task over the next few decades as it looks for ways to make use of the voids left by mining. One widely suggested option is to convert these sites to pumped hydro facilities that would provide energy storage for the electricity grid.
However, a new report from the Institute for Energy Economics and Financial Analysis (IEEFA) highlights the technical, environmental and financial risks these projects could pose. Pumped hydro has a history of delays and cost-blowouts, and projects implemented in mine voids could also entail severe contamination risks.
The report, entitled Filling the voids: Pumped hydro proposals could see taxpayers financing mine rehabilitation, also warns of the possibility these projects would effectively set a precedent of governments partially funding the rehabilitation of mine sites – a responsibility that should sit with the mine operator.
Anne-Louise Knight, Lead Analyst, Coal Industry Australia and the report’s author, says: “Rehabilitating mine sites is a legal obligation miners enter when their mining licences are approved, and they should be budgeting for this ahead of the mine’s closure. IEEFA’s research raises concerns that proposals to build pumped hydro in these final voids may potentially be a way to get governments to share some of that financial burden, with taxpayers ultimately losing out.”
Along with the risks, IEEFA’s research found these projects are unlikely to deliver significant benefits for Australia’s energy system. While large-scale, strategically placed pumped hydro such as Snowy 2.0 could play an important role providing deep energy storage to complement renewable electricity generation, most of the schemes proposed for mine voids only offer medium-duration storage. Analysis of projected storage requirements in the National Electricity Market (NEM) suggests demand for these specific projects will be limited, and might be met more competitively by alternative technologies.
Knight says, “There is little to no requirement in the NEM for the pumped hydro proposed in mine voids. The primary driver for pumped hydro proposals in mine voids appears to be an attempt to find a suitable post-mining use for mine voids rather than to fill the energy storage requirements in the NEM.”
The report argues that if final voids are permitted to be left after mining, then Australia needs a clearly defined policy that sets out the obligations of mining companies to rehabilitate or repurpose mine pits, to avoid significant financial burden on the taxpayer.
“Currently it is unclear what the rehabilitation strategies are for these giant holes dotted across the country,” says Knight. “Governments must ensure companies meet their obligations in managing the ongoing risks these structures pose, while ensuring that taxpayers are not left to pick up the bill.”
Read the report: Filling the voids: Pumped hydro proposals could see taxpayers financing mine rehabilitation
