Tasmania: A second interconnector to improve security?

April 29, 2016

Water pipeline to Hydro-Electric power station at Tarraleah, Tasmania

The Commonwealth and Tasmanian governments will conduct a feasibility study of whether building a second interconnector would help address long-term energy security issues. It will also provide advice on how best to use and develop Tasmania’s current and prospective large-scale renewable energy resources.

The study will be undertaken by the former Member for Bass, Warwick Smith, with support from the departments of the Environment and Industry, Innovation and Science, along with the Tasmanian Government. The Australian Energy Market Operator (AEMO) and Clean Energy Finance Corporation (CEFC) will be actively involved during the course of the study.

The study will provide options for consideration by the Commonwealth and Tasmanian governments including:

analysing the extent to which a second interconnected would allow the development of dispatchable and balanced renewable energy into the National Electricity Market (NEM), and integrate with the Victorian electricity market and the wider NEM
investigate how best to use and develop Tasmania’s current and prospective large-scale renewable energy resources, noting the system security benefits provided by Tasmania’s hydroelectricity generation
advise on regulatory and financing issues and potential cost impacts on electricity customers

The study will incorporate work already undertaken by the Tasmanian Government and will be framed within the existing energy market regulatory framework.

A preliminary report will be provided in June 2016. The final report is to be completed by year end in alignment with the work of the Tasmanian Energy Security Taskforce.

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