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, the Hon Warwick Smith AM, with support from the departments of the Environment and Industry, Innovation and Science, along with the Tasmanian Government. The Australian Energy Market Operator 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.
The terms of reference of the study are:
- Analyse the extent to which a second interconnector would:
- address long-term energy security issues.
- facilitate the development of Tasmania’s prospective large-scale renewable energy resources
- allow the development of dispatchable and balanced renewable energy into the National Electricity Market (NEM)
- 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.