The Battery of the Nation initiative offers significant potential for Tasmania and Victoria to work together to achieve an affordable, reliable clean energy future.
A new analysis from Hydro Tasmania, How Battery of the Nation can contribute to Victoria’s energy needs and objectives, was developed with funding assistance from the Australian Renewable Energy Agency (ARENA) and outlines the challenges facing Victoria as it transitions away from fossil fuels to renewable energy.
The whitepaper shows Tasmania can help Victoria mitigate the risks of early or unexpected coal plant retirement, including high costs and unreliable supply, while supporting its renewable energy ambitions.
Hydro Tasmania’s Chief Executive Officer, Steve Davy, said Victoria’s least-cost options are wind and solar – variable sources that require firming to be reliable.
“Victoria will need to access significant energy storage to ensure they can meet their renewable energy targets while keeping the power system reliable,” Mr Davy said.
“Tasmania has idle capacity waiting to be unlocked by market signals and delivered through the additional interconnection required by Battery of the Nation.
“As well, Tasmania also has significant potential for development of new, low-cost, long-duration pumped hydro storage, offering the firming Victoria’s future energy mix requires.
“However, with change already underway, we need proactive support for interconnection through TasNetwork’s Marinus Link project to get the electricity to where it’s needed, along with the timely development of investment incentives to ensure supply is available when it’s needed.
“Further interconnection between Victoria and Tasmania will help manage the energy transition over coming decades, enabling practical solutions that are complementary to Victoria’s renewable energy, as well as supporting the rest of the National Electricity Market.
“By working together, Victoria and Tasmania can facilitate a smooth transition to the clean, reliable power system of the future.”
ARENA has supported the Battery of the Nation initiative with up to $5 million in funding for project studies, which is being matched by Hydro Tasmania.