Australia’s energy sector is undergoing significant transformation, with a rapid acceleration of retiring coal plant expected in the late 2020s.
New analysis from Hydro Tasmania shows the Battery of the Nation initiative offers significant potential for Tasmania and Victoria to work together to achieve an affordable, reliable clean energy future.
The white paper, How Battery of the Nation can contribute to Victoria’s energy needs and objectives, outlines the challenges facing Victoria as it transitions away from fossil fuels to renewable energy.
The analysis shows Tasmania can help Victoria mitigate the risks of early or unexpected coal plan retirement, including high costs and unreliable supply, while supporting its renewable energy ambitions.
How Battery of the Nation can contribute to Victoria's energy needs and objectives
Understanding reliability in the future NEM
Analysis released by Hydro Tasmania demonstrates that additional Bass Strait interconnection would immediately unlock many hundreds of megawatts of latent dispatchable capacity in the Tasmanian hydropower system, and make it available to a transforming National Electricity Market (NEM).
The White Paper The potential of Tasmania’s renewable generation assets with more interconnection has been developed as part of Hydro Tasmania’s work to support Tasmania’s ambition to become the renewable energy Battery of the Nation.
Download the White Paper >
It’s expected that in coming decades the National Electricity Market (NEM) will rely less on coal and more on renewable energy sources like wind and solar. These changes are already starting to happen, and the late 2020s is expected to be the start of rapid change. The graph shows the rapid decline of coal from 2028 and the impact on overall generation capacity. Wind and solar are what’s called ‘variable’ energy sources (as the sun doesn’t always shine and the wind doesn’t always blow). If we rely more on these sources, there’ll be a much greater requirement for ‘firming’ capacity, to ensure energy security and support variable generation sources.
The Battery of the Nation opportunity offers economies of scale, diversity and flexible, reliable renewable energy resources. This is combined with cost-competitive, large-scale storage that can be built in stages, aligned to market drivers. This opportunity can bring significant benefits to both Tasmania and the rest of the NEM.
Tasmania has an extensive hydropower system that can be repurposed for the needs of a future market, to quickly and reliably support variable generation. The state also has significant pumped hydro potential which is very cost competitive compared to other storage options. The options can offer a diversity of storage lengths ranging from hours to several days.
Tasmania is often talked about as having the best wind resource in the world, lying directly in the path of the Roaring Forties. This wind resource is relatively untapped and plentiful. Tasmania’s other clear advantage is the different wind pattern to other states. Learn more >
Tasmania’s renewable energy solutions are lower cost than other credible options. Our wind power, pumped hydro potential and further interconnection create a credible and cost-competitive solution to address the energy trilemma. Learn more >
Affordability, security and sustainability make up the energy trilemma. The Battery of the Nation opportunity addresses all parts of this equation, in a coordinated system solution. Importantly, our analysis shows that flexible hydropower can reduce reliance on gas for firming services and will reduce energy resource costs by as much as 20%, putting downward pressure on prices to customers. Learn more >
Future energy solutions must fit with national energy market strategies and planning. Since the release of our report in June, Hydro Tasmania welcomes the first release of the Australian Energy Market Operator’s Integrated System Plan (ISP) and its support for developing the Battery of the Nation initiative.
Battery of the Nation is one of two major existing energy storage proposals (along with the Snowy 2.0 project), identified in the ISP released by AEMO.
Learn more >
The Battery of the Nation opportunity could:
The renewable energy developments proposed under Battery of the Nation are extremely cost effective compared to other realistic options. This will put significant downward pressure on Tasmanian power prices.
Thousands of megawatts of new wind generation on island and more interconnection to the mainland would mean secure long-term energy supply for Tasmania.
The investment in pumped hydro, wind generation and transmission will be incremental over decades and focused on areas outside major city centres. This will generate significant, ongoing economic stimulus in regional areas of Tasmania.
Australia is going to need huge-scale renewable development in coming years and the Battery of the Nation plan is one of the most achievable and competitive solutions to Australia's looming energy challenge. Australia now has a clear and viable solution to invest in, for building the renewable storage and wind farms our nation needs.
This will bring national benefits including:
Compared with credible alternatives, the renewable energy developments modelled under Battery of the Nation would put downward pressure on prices to customers across the NEM.
The ability to leverage existing assets and storages will enable Tasmania to provide critical system balancing and firming services to ensure reliable energy provision in the NEM.
Investing in Tasmania’s world class wind resources will help deliver Australia’s energy sustainability targets and international carbon reduction commitments.