INCREASING wind generation and exporting it through a second Basslink would be a “big economic opportunity” for Tasmania, according to Prime Minister Malcolm Turnbull.
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Mr Turnbull announced in Hobart on Thursday the federal government would contribute towards a feasibility study for a second electricity interconnector.
“The combination of hydro power, which is dispatchable at any time, and wind, would enable Tasmania to deliver on a much larger scale dispatchable renewable energy right across the nation,” Mr Turnbull said.
“This has the potential of being a very big, significant economic investment, and a big economic opportunity for Tasmania.”
The $40,000 study will begin “immediately” and will look at the economics of a second cable.
It will be led by former Bass MHR Warwick Smith.
“We believe it is very likely to have real commercial viability,” Mr Turnbull said.
Mr Turnbull said an “obvious avenue” to fund a cable would be through the Clean Energy Finance Corporation.
“The interconnector should be built as soon as it found to be economically and commercially feasible,” he said.
He said the proposal had an energy security dimension to it also.
“If you’ve got two links, obviously if one is broken you’re not completely cut off,” he said.
We believe it is very likely to have real commercial viability
- Prime Minister Malcolm Turnbull
“But there is potential for enormous additional investment in renewable energy in Tasmania.”
The Basslink cable has not been operational since December, and is due to come back online in mid-June.
Due to dry conditions, Tasmania had been importing 40 per cent of its power through the cable.
Braddon Liberal MHR Brett Whiteley said the study would incorporate work already undertaken by the state government.
“Developing these sorts of projects will cement Tasmania’s role as the renewable energy power hub of Australia, with the North West front and centre,” Mr Whiteley said.
Labor supports the study.