5 years ago
PUMPED HYDRO INVESTMENT NEEDS LABOR’S RENEWABLE POLICY
MARK BUTLER MP
Modelling confirms Tasmania’s Marinus Link and related investments, and Snowy Hydro 2.0 projects only make sense under Labor’s renewable energy policies.
The Feasibility Study for the Tasmanian Marinus Link project, which will see a new Tasmanian interconnector support pumped hydro and wind generation investment, confirms that under a ‘business as usual’ neutral scenario, the project doesn’t stack up.
The feasibility study states: “in the neutral scenario the costs of Marinus Link would exceed the benefits it would provide, even after including other benefits not captured by EY’s model.”
In the ‘neutral scenario’, the cost-benefit of a 600MW interconnector investment is a net cost of $270 million, meaning the project fails to deliver a net benefit to Australia.
However, under a ‘’High Emission Reduction Scenario’ which is broadly consistent with Labor’s 50 percent 2030 renewable energy commitment, the project delivers a net positive benefit of $490 million for a 600 MW interconnector.
More damning for the Government, the net cost of a 600 MW interconnector increases to $377 million if Snowy 2.0 is also built, as the Government today confirmed is their intention.
The only scenario in which the Marinus project delivers a positive net benefit in the presence of Snowy 2.0 is also in the High Emission Reduction Scenario, with a positive net benefit of $114 million for a 600 MW link. These results are qualitatively the same for the larger 1200 MW link option.
These results confirm what we have known for years, pumped hydro investments only make sense to support ambitious renewable energy investment, and in particular, the only case in which both Snowy 2.0 and Project Marinus (and greater investment in Tasmanian pumped hydro) make sense is with Labor’s commitment to 50 per cent renewable energy by 2030.
The Prime Minister has spent two days and almost $1.5 billion dollars supporting projects that only make sense in the renewable energy future his government and his party vehemently oppose, and after 5 years of government are still fighting against.
They refuse to provide any support for new renewable investment once Labor’s Large Scale Renewable Energy Target expires in 2020, preferring to provide taxpayer support for unnecessary, expensive and polluting new coal power plants.
Only Labor has a clear, consistent and modernising vision for Australia’s energy future; with cleaner renewable energy, more storage, and a modern transmission network.
The Liberals have an incoherent, ad-hoc, chaotic approach that has more in common with a marketing strategy than a strategy for affordable, reliable and clean power for Australia.
The Feasibility Study for the Tasmanian Marinus Link project, which will see a new Tasmanian interconnector support pumped hydro and wind generation investment, confirms that under a ‘business as usual’ neutral scenario, the project doesn’t stack up.
The feasibility study states: “in the neutral scenario the costs of Marinus Link would exceed the benefits it would provide, even after including other benefits not captured by EY’s model.”
In the ‘neutral scenario’, the cost-benefit of a 600MW interconnector investment is a net cost of $270 million, meaning the project fails to deliver a net benefit to Australia.
However, under a ‘’High Emission Reduction Scenario’ which is broadly consistent with Labor’s 50 percent 2030 renewable energy commitment, the project delivers a net positive benefit of $490 million for a 600 MW interconnector.
More damning for the Government, the net cost of a 600 MW interconnector increases to $377 million if Snowy 2.0 is also built, as the Government today confirmed is their intention.
The only scenario in which the Marinus project delivers a positive net benefit in the presence of Snowy 2.0 is also in the High Emission Reduction Scenario, with a positive net benefit of $114 million for a 600 MW link. These results are qualitatively the same for the larger 1200 MW link option.
These results confirm what we have known for years, pumped hydro investments only make sense to support ambitious renewable energy investment, and in particular, the only case in which both Snowy 2.0 and Project Marinus (and greater investment in Tasmanian pumped hydro) make sense is with Labor’s commitment to 50 per cent renewable energy by 2030.
The Prime Minister has spent two days and almost $1.5 billion dollars supporting projects that only make sense in the renewable energy future his government and his party vehemently oppose, and after 5 years of government are still fighting against.
They refuse to provide any support for new renewable investment once Labor’s Large Scale Renewable Energy Target expires in 2020, preferring to provide taxpayer support for unnecessary, expensive and polluting new coal power plants.
Only Labor has a clear, consistent and modernising vision for Australia’s energy future; with cleaner renewable energy, more storage, and a modern transmission network.
The Liberals have an incoherent, ad-hoc, chaotic approach that has more in common with a marketing strategy than a strategy for affordable, reliable and clean power for Australia.