Fourteen possible pumped hydro developments with potential to create about 3000 jobs in regional Tasmania have been identified.
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Federal Energy Minister Josh Frydenberg said the sites in the North-West, West and Central Highlands would now be subject to a 12-month pre-feasibility assessment.
He said that would include “surveying to the highest available accuracy, modelling of both the market and water resource and identifying environmental, cultural and social impacts”.
He will visit the North-West on Wednesday to announce the sites, which Hydro Tasmania identified as having high potential for pumped hydro.
“Early modelling shows, if developed, the construction of the PHES (pumped hydro energy storage) potentially would create up to $5 billion of investment and around 3000 jobs in regional Tasmania over 10 to 15 years,” Mr Frydenberg said.
“This project forms part of the initiative announced by the Prime Minister in April 2017 and to which $2.5 million has been committed by the Turnbull Government through ARENA (the Australian Renewable Energy Agency).
“The initiative, which includes a bundle of proposed projects, such as redeveloping existing hydro-electric power stations, would double Tasmania’s existing storage capacity and, along with the business case study for a second Tasmanian interconnector, would improve the affordability and reliability of the National Electricity Market.”
Premier Will Hodgman said: “Tasmania’s pumped hydro scheme has the potential to be this generation’s version of the historic hydro-electric development.”
“This is state-building and nation-leading, and will cement Tasmania’s position as the country’s clean, reliable and affordable energy powerhouse.
“This will unlock massive investment, job creation, and ground-breaking engineering for Tasmania, and take our energy industry to the next level.”
Five sites are at Lake Cethana, five on the West Coast and one each at Lake Rowallan, Lake Parangana, the Great Lake and Lake Echo.
Braddon Liberal candidate Brett Whiteley said: “If realised, this second generation of Hydro development will underpin economic development in the West and North-West for decades to come.”
“The West Coast of Tassie was made with the original Hydro developments.”
“Now this second generation of development has the potential to take it to a whole new level.
“This is just another example of Liberal governments in Canberra and Tasmania working together to create jobs and boost investment in Braddon.”
Tasmanian Energy Minister Guy Barnett said the project further strengthened the case for a second interconnector across Bass Strait.
“Tasmania is a renewable energy leader that can more than double our energy supply by 2033 while delivering thousands of new jobs and low-cost clean energy,” Mr Barnett said.
“These pumped hydro developments are important building blocks of a long-term plan.
“This report is compelling evidence in support of further interconnection to help drive down energy prices and underpin our growing economy.
“Our Tasmania First energy policy builds on Tasmania’s renewable energy advantage to unlock more development, growth and jobs”.
Mr Frydenberg explained pumped hydro as “pumping water uphill to a storage reservoir and releasing it through a turbine to provide additional energy into the electricity grid when it is needed”.
“It can be dispatched rapidly, meaning it is well placed as backup for renewable energy and during times of peak demand.”