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Category: Electricity Energy and Utilities / States and Territories

Hydro Tasmania to fire up Tamar power station

Wednesday, 28 Sep 2016 11:25:41 | Richard Baines

The Tamar Valley power station at Bell Bay will come on line in mid-October. (ABC News)

Hydro Tasmania will fire up the Tamar Valley Power Station next month as it moves to build up its water storages.

The ABC has been told the costly station will be fired up in mid-October and its operation will depend on rainfall levels.

Hydro hired 12 temporary workers last December at what was then a mothballed operation, less than two months after making 12 positions redundant.

There were plans to sell the station by the State Government, but that has since been scrapped after low dam levels and a cut to the Bass Strait power cable combined to create a state energy crisis.

Workers will now get the station operational again.

The news comes as Tasmania's biggest power users demand 12 months' worth of power stored in Hydro dams.

In a highly critical submission to the state's Energy Security Taskforce set up to review the crisis, the Minerals and Energy Council suggested increased power storage was the key to energy security going forward.

The council, which represents big industrial power users, wants 12 months' worth of storage in future.

"Build storages such that the 'normal' lower limit [prior to autumn/winter rains] still has a minimum 12-month reserve about the lower practical limit," the submission said.

"Limit 'power export' via Basslink in order to build storages to an effectively safe minimum — in line with targets and milestones."

In a statement, Hydro Tasmania's chief executive Steve Davy said the government business was working on storage while the taskforce considered its 31 stakeholder submissions.

"While the taskforce considers that new evidence, Hydro Tasmania is applying additional conservatism to storage management," he said.

"We're also taking interim steps to further enhance our climate modelling and planning assumptions."

Mr Davy said "overreacting" to the energy crisis "could be very expensive for Tasmanians".

Second Bass Strait cable a distraction, stakeholder says

Tasmania's biggest power user, Bell Bay Aluminium, has argued the Federal Government's big-ticket election promise for a second undersea cable was unhelpful.

"Discussions focussed on a second Basslink is a concerning distraction which can only lead to increased costs and therefore conflicts with the overarching direction of using energy to grow Tasmania's economy," its submission said.

Gauge at dry Lake Gordon in south-west Tasmania Photo: Tasmania's hydro dam levels reached a record low of 12.8 per cent during the crisis. (ABC News: Richard Baines)

Bell Bay Aluminium's submission questioned the economic viability of what would be a multi-million dollar major infrastructure project.

It suggested other alternatives.

"For the future of Tasmania's economy and energy security, a much better investment would be in economic renewables, pumped storage, increased efficiencies or expanding installed hydro generation base," it said.

"This would drive prices down, create economic growth in the state and meet [the] intent of the Government's Energy Strategy."

The Treasurer Peter Gutwein, who is also one of Hydro Tasmania's shareholding ministers, would not be drawn on the criticism .

"These are matters that will be discussed and considered through the independent panel," he said.

Taskforce head not surprised by Bass Strait cable concerns

The head of the taskforce examining Tasmania's Energy Security, Geoff Willis, said the concerns were not a surprise, given a Federal Government-commissioned feasibility study of the project was also underway.

"It's very topical, and there is a parallel process going on now," he said.

The taskforce was formed in response to the energy crisis, and Mr Willis, a former Hydro executive, was appointed to head it.

He said interim findings would be handed to Energy Minister Matthew Groom by Christmas.

"The taskforce is tasked by the Minister, and we will be reporting to the Minister and interim report in December, and final report by June of next year," Mr Willis said.

"The consultation paper and the responses we've received are very timely."

It will be at the discretion of the State Government as to whether the report is made public.

There are no plans for the taskforce to hold public hearings.

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