Australia’s energy sector is undergoing significant transformation, with a rapid acceleration of retiring coal plant expected in the late 2020s.
Hydro Tasmania has hundreds of megawatts of latent capacity and ample opportunities to optimise our existing asset base and build highly cost competitive pumped hydro development. In particular, our existing and potential long duration (deep) storages allow us flexibility in optimising our assets and operations to best meet future market requirements.
Additional interconnection would support expansion of Tasmania’s existing hydropower system, through development of pumped hydro, providing the firming capacity that will be needed to support a future Australian energy market characterised by decreasing coal plant and increasing wind and solar.
The Tasmanian opportunity represents one of the most reliable and cost-competitive solutions for meeting Australia’s future energy needs. It would put Tasmania’s energy needs beyond doubt, and ensure that Tasmanians enjoyed the lowest possible power prices. The Australian Renewable Energy Agency has committed up to $5.0 million for Battery of the Nation studies, as part of its Advancing Renewables Program.
As Australia’s transition to a greater penetration of renewables ramps up, new analysis from Hydro Tasmania examines the role of storage in supporting a reliable, resilient future energy market and further validates the case for an expansion of Tasmania’s hydropower system.
We’ve produced a series of white papers (links below), jointly funded with the Australian Renewable Energy Agency (ARENA), that take a detailed look at Australia’s future energy market and how to plan for an uncertain future.
We examine modelling and design of the future energy market (and the challenges that presents), unlocking investment in much-needed storage and how deep storage (duration of 12+ hours) is the optimal, least-cost choice to manage future uncertainty during the country’s energy transition.
We bring together key insights to show that energy storages that can operate over many hours (12+ hours) are an optimal, least-cost choice able to manage realistic uncertainty in the power system.
Our analysis demonstrates that Tasmania has an ideal opportunity to develop the cost-effective deep storage pumped hydro that Australia needs to manage these uncertainties and support a reliable future NEM.
Download the insights paper >
There is a significant challenge ahead to plan for, and implement, a timely and orderly transition for Australia’s electricity market. Substantial effort and investment into modelling will be required to try to understand the potential development options of the future NEM.
Our white paper Challenges in modelling the transforming NEM takes a close look at the challenges driving future uncertainty and how modelling must adapt to create robust options that work across a range of potential futures.
Download the White Paper >
Understanding how storage might realistically operate in the future is critical to understanding the potential reliability of Australia’s energy system.
The white paper Operation of storages without perfect foresight shows that using more realistic forecasts, we will need more and longer duration storages than currently predicted. The analysis demonstrates that longer storages are better able to manage forecast uncertainty and more likely to have energy in storage at times when it will be needed. This will better support the reliability and security of the future NEM.
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.
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. Hydro Tasmania welcomes the release of the Australian Energy Market Operator’s Integrated System Plan (ISP) and its support for developing the Battery of the Nation initiative.
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.