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Category: Hydro Energy / State Parliament / Manufacturing

Tasmania's big industries back to capacity soon as dams rise: Hydro

Tuesday, 17 May 2016 09:53:24

Nyrstar zinc works is one of five major industrials to cut production in the energy crisis. (Andrew Fisher: ABC News)

Tasmania's major industrial companies could be back at full capacity within weeks after heavy rainfall lifted hydro-electric dam levels from record lows.

The state has faced an unprecedented energy crisis as extremely dry conditions resulted in dams, which feed hydro generators, falling to record lows.

It was compounded when the undersea Basslink cable failed, leaving the state unable to import electricity until at least June.

The industrial customers of the state-owned generator, Hydro Tasmania, were forced to reduce usage during the crisis.

The companies, including Bell Bay aluminium, Nyrstar zinc works, Norske Skog paper mill, Temco manganese alloy plant and the Savage River mine use 60 per cent of Tasmania's electricity.

Hydro's Tasmania's chief executive, Steve Davy, told 936 ABC Hobart they were in discussions with the companies to get back to full capacity.

"Over the last week we have been talking to the large customers that have reduced their demand about the timing of coming back to normal operations and I would hope that we would see those customers come back to normal operations over coming weeks," he said.

Cost of crisis expected to increase

Mr Davey said the total cost of the state's power crisis was yet to be accounted for, but was likely to keep increasing.

Significant rainfall in recent weeks has allowed Hydro Tasmania to switch off costly diesel generators and the gas-fired Tamar Valley Power Station.

Mr Davy said the full cost the power generator's bottom line would be revealed at the end of the year.

"We've stated that we've spent around about $50 million installing and leasing the diesel units and then about $8 million operating those diesel units," he said.

"It would be good if that's all we spent in operating the diesel units and that we don't need to operate them again if we get sufficient rain and we don't need to put them on again and that's looking likely at the moment."

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