TasNetworks has told a House of Representatives committee examining the future need for dispatchable energy generation the proposed Marinus Link will be vital for bringing new skills to the energy development workforce.
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An inquiry on the need and potential for dispatchable energy generation and storage capability in Australia was established in March after a referral from Energy Minister Angus Taylor.
TasNetorks general manager for Project Marinus, Bess Clark, in a submission said the company's findings from analysis on the proposed Bass Strait link showed it could support workforce participation by fostering the development of skills related to the energy industry as it transitioned from coal-fired power generation.
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She said there would be 2800 direct and indirect jobs during peak construction and a further 2350 jobs in the energy sector once the project was complete.
Ms Clark said the capital cost of pumped hydro storages in Tasmania was about 30-per-cent lower than other sites in the national electricity market.
"Tasmania's existing hydro capacity is a significant source of value to mainland Australia's electricity customers, given the forecast coal plant closures and the projected growth in variable renewable generation," she said.
It is predicted that at least 19,000 megawatts of coal-fired generation is forecast to retire around the country by 2040.
Hydro Tasmania's Andrew Catchpole said the Battery of the Nation initiative with Marinus Link would be able to provide 1500 megawatts of additional transmission interconnection between Tasmania and Victoria.
He said prioritising longer duration storage and increasing interconnection would result in a more robust and low-cost energy market.
Mr Catchpole said pumped hydro storage with interconnection would address the variability of wind and solar energy resources.
"Hydropower and pumped hydro energy storage is the most cost competitive storage option for long duration storage, which can also respond flexibly to shorter-term market signals," he said.
Mr Catchpole said state and federal governments should explore options to develop targeted policies to support hydropower investments.
"Sufficient investment signals and market certainty is required to deliver flexible, dispatchable capacity and long duration energy storage at the right time and lowest cost," he said.
"Focus should not just be on greenfield investments, but also incentivising modernisation and redevelopment of existing assets - particularly hydropower - to ensure they are appropriately set to support the future energy system."
Sixty per cent of Tasmania's hydroelectric stations are more than 50 years old.
Mr Catchpole said Hydro Tasmania had an asset management plan that sought to modernise and refurbish it assets.
There has been no final date scheduled for the committee to report back to Parliament.
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Political reporter for Australian Community Media, based in Hobart.
Political reporter for Australian Community Media, based in Hobart.
