2016 Tasmanian energy crisis

The 2016 Tasmanian energy crisis is an ongoing energy storage situation in the state of Tasmania, Australia in 2016. Two years of high volumes of energy exported to Victoria via the Basslink HVDC cable, followed by low rainfall, and a fault which rendered the cable inoperable, resulted in record low storage levels in Tasmania's hydro-electric system. This resulted in a number of contingency plans to be enacted by Hydro Tasmania and the Hodgman Government.

Background

Graph of Hydro Tasmania's system storage levels from March 2010 to March 2016. The blue line represents energy in storage. The green represents the period where the carbon tax was in place, and the red represents the period when Basslink was out of service.

Tasmania's electricity generation is primarily hydro-electric, having been gradually developed since 1914. As a result, the state is highly dependent on rainfall for electricity generation. An energy shortage in the 1960s resulted in the construction of the oil-fired Bell Bay Power Station. However, this station was only used as a contingency - as of 2015, hydro-electricity continued to be the primary generation method.[1] The state was self-reliant until 2005, when the Basslink HVDC interconnector to Victoria was completed. Basslink was intended to both provide energy security, in case of drought; and provide renewable energy to Victoria, which relies heavily on coal as a fuel source.[2]

Tasmania's reliance on hydro-electricity was further increased by the decommissioning of the Bell Bay Power Station in 2009, and the mothballing of several units of its replacement, the gas-fired Tamar Valley Power Station, including considering selling parts of the station.[3] Conversely, this reliance was reduced in part by the expansion of the Woolnorth wind farm in 2007 and the construction of the Musselroe wind farm in 2013.

In July 2012, an Australian carbon pricing system came into effect, providing renewable electricity generators with a competitive advantage over greenhouse gas-emitting generators. The Abbott Government had promised the repeal of the scheme in the lead-up to the 2013 federal election, in which they were successful. Anticipating that the carbon pricing scheme would be short-lived, Hydro Tasmania capitalised by increasing generation and running down storage levels over the period from July 2012 until the carbon price was repealed in July 2014. Hydro Tasmania's storage levels peaked around 62% in late 2012 before declining to 28% capacity on 1 July 2014.[4][5] Whereas Hydro Tasmania's target minimum storage levels on 1 July each year was traditionally 30%, in September 2012 it lowered this target to 25%.[5]

Hydro Tasmania's storages did not recover significantly during the second half of 2014 or 2015, despite above average inflows from May to August 2015. Storage levels began dropping sharply from September 2015 due to extremely low inflows; October inflows were just 7% of the long-term average for that month.[5]

Basslink outage

On 22 December 2015, Basslink announced[6] that the HVDC cable had experienced a fault two days earlier (20 December) and was unable to transmit electricity in either direction.[7][8] The location of the fault was identified as approximately 100 km off the coast of Tasmania. Basslink informed the Australian Energy Market Operator that the interconnector would experience an outage of up to 60 days.[9]

To diagnose the fault, Basslink contracted a range of specialist companies, including cable joiners from Italy and the submarine cable laying ship, Ile De Re.[10] The ship, which typically services communications cables, underwent modifications in the port of Geelong to suit HVDC cables.[11] The problem continued into February 2016,[10][12] and is considered to be an expensive problem to fix.[13]

On 8 March 2016, Basslink announced they intended to cut the cable within a week and have the cable back in service by late May,[14] with the cable actually being cut on the 11th.[15]

At the end of March 2016, the fault had been identified, and the recovery date for Basslink had been put back to mid June 2016 [16]

By the second last week of April 2016, the first stage of the repair was reported as complete [17]

Response

Actions taken to minimise the consumption of water from Hydro Tasmania's storages include:

Also at a political level, the unresolved problem seems to have no cross party agreement on the issues.[22] Long term ramifications are also being considered.[23][24][25] The prospect of the Basslink connection being lost permanently also is being considered.[26] The dam makers of the early dam making era of Hydro Tasmania also have offered their reflections[27] with no allowance or concession to any of the alternatives that were offered in the 1980s as viable energy generating infrastructure.

On 8 March 2016 Tasmanian Energy Minister Matthew Groom delivered a statement on energy security, summarising the government's actions to date and announcing future steps to manage the energy crisis, including the formation of a Tasmanian Energy Security Taskforce.[28]

The cutting of the basslink cable also severed part of the internet link to Tasmania,.[29][30][31][32]

The state government has considering requesting funding for a second cable,[33] while the fault seeking on the first cable was apparently unsuccessful.[34]

The subsequent comments from the Opposition regarding the growing crisis were rebutted as scaremongering.[35]

The energy crisis elicited a response for inquiries and examination of issues, including recent Hydro Tasmania management [36][37]

Issues of residual capacity

By March 2016 Tasmanian media were discussing the extent to which Hydro Tasmania would be able to draw upon very low water levels in dams and still create energy from the downstream power stations.[38][39]

In late March 2016, with no resolution to issues in sight,[40][41][42] saw the upgrading of the Tamar Valley Power Station gas turbine capacity [43]

Some commentators see the crisis as requiring consideration of the issues arising as imperative for the states future [44][45]

Some businesses and business groups took steps to safeguard their power supplies regardless of official pronouncements about power cuts [46]

By late March 2016, Hydro Tasmania was to state lower levels on dam holdings than previously stated [47] and the state of the major dam of the system Lake Gordon has been recorded in its lowest record level [48] leading some commentators to suggest the option of bringing up an issue from some decades before, of the draining of the hydro-dam created new Lake Pedder back to the level of the original Lake Pedder [49]

Energy use

Concern of change of weather conditions and potential increased energy usage was noted in March [50] with the Minister for Energy Matthew Groom calling for sensible energy usage [51][52][53]

A series of diesel generators were installed at Meadowbank Power Station, to be part of the apparent short term solution until June.[5][54]

The ABC news website explanation of the issue of energy use is regularly updated [55]

In April 2016, Hydro Tasmania commenced advertising for conservation of energy by Tasmanians with newspaper advertisements [56]

Financial and political impact

Regardless of the timeline or subsequent resolution of some of the issues, the impact of the crisis, financially and politically, on banks [57] and the Tasmanian government, was expected to be substantial [58][59] However for industry, there is a different expectation in relation to power supply for industry [60]

Outside perspectives and comparisons

A few commentators from outside Tasmania have tried to put perspective on the issues relative to the larger picture of how political and Hydro Tasmania level decisions affected the current energy issues [61][62][63]

Recent Hydro Tasmania board decisions also have been under the spotlight from former staff [64][65]

Many mainland commentators also focus upon the need to change current policies and practices relative to energy [66]

Resolution

The Power crisis is expected to be resolved by the Basslink repair (was expected to be mid-June 2016),[67] and increased rain for hydro storages, however strategies prior to the resolution involve further utilisation of Diesel power units being delegated to Power Stations [68]

The Minister for energy in March 2016 stated:[69]

"The Government can't control the rain, the Government can't control the timing of Basslink," he said. "What we can control are contingencies that we can put in place to make sure that we can meet Tasmania's ongoing energy requirements."

In April, there was a suggestion that unseasonal weather in June (18 consecutive clear days on Bass Strait) was required for a successful re-connection to occur, put the question of possible further delays [70]

Senate Inquiry

Early in 2016, members of the Australian upper house, the senate decided to hold an inquiry into the crisis,[71] and it was planned to occur in April 2016 [72]

The Tasmanian minister for energy's response to the impending inquiry on the 14th of April is a claim he has not been asked to attend [73] While the Premiers perspective was to criticise the Inquiry as a Federal election time political game, in the face of internal documents showing serious concern from within Hydro Tasmania regarding its water levels [74][75]

The inquiry commenced on the 14th [76] and Hydro Tasmania staff would not be attending:-

Mr Groom has said Hydro staff should not be distracted during the energy situation

[77]

During the enquiry, a range of issues raised before the committee sat were downplayed by the Minister and government staff.[78] The Tasmanian Treasurer has refused to publicly reveal costs of the crisis.[79]

Blackouts and plans

It was claimed in early April that

“active discussions” for more than three months about enforced blackouts and brownouts

[80]

However this does not agree with the public statements of the Minister.[81]

Various sectors of the Tasmanian community, as well as regions, were concerned at the prospect of loss of energy available to support their industries [82][83]

May 2016

The explanation of how the issue developed continues in the media [84] as well as delays due to Bass Strait conditions [85]

See also

External links

References

  1. ↑ "Annual Planning Report, 2015, figure 3-3" (PDF). TasNetworks. Retrieved 25 February 2016.
  2. ↑ Electricity Supply Industry Expert Panel (December 2011). "Basslink: Decision making, expectations and outcomes" (PDF).
  3. ↑ "Tas Government flags partial sale of gas-fired Tamar Valley power station". Australian Broadcasting Corporation. 4 December 2014. Retrieved 25 February 2016.
  4. ↑ "How much new renewable energy does Tasmania need?". RenewEconomy. 22 February 2016. Retrieved 25 February 2016.
  5. 1 2 3 4 "Ministerial Statement on Energy Security". www.premier.tas.gov.au. Retrieved 2016-03-11.
  6. ↑ Basslink interconnector outage, Basslink Media release. 22 December 2015
  7. ↑ "Tasmania forced to be self-reliant on power after Basslink cable outage". Basslink is planning a major operation to repair its undersea power cable which has been shut down, halting power imports to Tasmania. ABC News. 23 December 2015. Retrieved 1 April 2016.
  8. ↑ Martin, Corey (22 December 2015). "Fault found in Basslink electricity cable". Basslink has been advised that there has been no impact to Tasmanian or Victorian residential or commercial customers to date as a result of this outage,” Mr Eccles said. (Fairfax Media). The Examiner. Retrieved 1 April 2016.
  9. ↑ "Busted: Basslink out of action". The Examiner. 22 December 2015. Retrieved 26 February 2016.
  10. 1 2 "Basslink still searching for cable fault". ITNews. 28 January 2016. Retrieved 26 February 2016.
  11. ↑ "Repairs to start on Basslink power cable". The Examiner. 27 January 2016. Retrieved 26 February 2016.
  12. ↑ "Tasmania power crises may worsen". Australian Broadcasting Corporation. 25 February 2016. Retrieved 25 February 2016.
  13. ↑ "Tasmanias energy crisis explained". Australian Broadcasting Corporation. 23 February 2016. Retrieved 26 February 2016.
  14. ↑ "Basslink homes in on underwater cable fault". Australian Broadcasting Corporation. 8 March 2016. Retrieved 8 March 2016.
  15. ↑ "Basslink repairs hit internet users in Tasmania". Australian Broadcasting Corporation. 11 March 2016. Retrieved 15 March 2016.
  16. ↑ http://www.abc.net.au/news/2016-03-29/basslink-pinpoints-fault-in-undersea-cable-tasmania/7280820?WT.ac=statenews_tas
  17. ↑ http://www.abc.net.au/news/2016-04-22/basslink-repair-on-track-and-should-be-completed-on-schedule/7350978?section=tas
  18. ↑ "Another big industrial trims demand as Tasmania energy crisis deepens". RenewEconomy. 1 March 2016. Retrieved 8 March 2016.
  19. ↑ "Power rationing". Australian Broadcasting Corporation. 23 February 2016. Retrieved 7 March 2016.
  20. ↑ "Environmental watchdog fast tracks diesel generators". Australian Broadcasting Corporation. 4 March 2016. Retrieved 7 March 2016.
  21. 1 2 "Tasmania battles to keep lights on with cloud seeding and diesel generators". The Examiner (Tasmania). 4 March 2016. Retrieved 7 March 2016.
  22. ↑ "Energy Minister set for grilling". Australian Broadcasting Corporation. 23 February 2016. Retrieved 7 March 2016.
  23. ↑ "Tasmanian frontbencher Matthew Groom". Australian Broadcasting Corporation. 22 February 2016. Retrieved 7 March 2016.
  24. ↑ "Hydro Tasmania in uncharted territory". Australian Broadcasting Corporation. 7 March 2016. Retrieved 7 March 2016.
  25. ↑ "Tasmanian government considers long term loss of Basslink cable". Australian Broadcasting Corporation. 23 February 2016. Retrieved 7 March 2016.
  26. ↑ http://www.themercury.com.au/news/opinion/talking-point-cable-and-company-may-be-sunk/news-story/c27abfae07080db30a9ee97138960b53
  27. ↑ http://www.themercury.com.au/news/opinion/talking-point-blocked-dam-would-have-added-security/news-story/98daa7e26ce79b51c436fe3ae61d90d0
  28. ↑ "Ministerial Statement on Energy Security". www.premier.tas.gov.au. Retrieved 2016-03-09.
  29. ↑ "Basslink repairs hit internet users in Tasmania". Australian Broadcasting Corporation. 12 March 2016. Retrieved 12 March 2016.
  30. ↑ http://www.abc.net.au/news/2016-03-13/tasmanian-internet-users-assured-services-will-improve-by-week/7242728
  31. ↑ http://www.abc.net.au/news/2016-03-14/accc-to-look-into-concerns-about-isp-access-to-telstra-cables/7244876
  32. ↑ http://www.abc.net.au/news/2016-03-13/bryan-green-calls-for-accc-probe-into-basslink-repairs/7243256
  33. ↑ http://www.abc.net.au/news/2016-03-09/tasmanian-government-wants-federal-funding-of-second-basslink/7231714
  34. ↑ McIntyre, Damian (15 March 2016). "Tasmania energy crisis: Basslink still unsure where cable fault is, facing 'phenomenal' repair costs". Repair crews are still unsure where the fault in Tasmania's vital undersea cable is days after cutting it, Basslink chief executive Malcolm Eccles says. ABC News. Retrieved 1 April 2016.
  35. ↑ Hunt, Linda (15 March 2016). "Tasmanian Opposition accused of scaremongering over energy crisis". Tasmania's Energy Minister has accused the Opposition of scaremongering over the state's energy crisis, saying rain will eventually ease the situation. ABC News. Retrieved 1 April 2016.
  36. ↑ http://www.themercury.com.au/news/opinion/talking-point-hydro-water-assets-badly-managed-and-heads-need-to-roll/news-story/4884d8fed6ef5cfd0c8f5c1565e2fd59
  37. ↑ http://www.themercury.com.au/news/opinion/talking-point-energy-security-crisis-has-its-roots-in-basslink-business-case/news-story/f97e2e79d1eefc84280cd4f75c37e187
  38. ↑ http://www.abc.net.au/news/2016-03-24/lake-gordon-capable-power-generation-despite-record-lows/7275114
  39. ↑ http://www.abc.net.au/news/2016-03-07/hydro-tasmania-in-uncharted-territory/7227494
  40. ↑ http://www.abc.net.au/news/2016-03-22/tasmania-blackouts-likely-as-energy-crisis-deepends-union-says/7266828
  41. ↑ http://www.abc.net.au/news/2016-03-23/tasmanian-csiro-staff-warned-to-prepare-for-power-load-shedding/7269092
  42. ↑ http://www.energymatters.com.au/renewable-news/tasmania-electricity-crisis-em5399/
  43. ↑ http://www.examiner.com.au/story/3813156/gas-turbine-to-improve-energy-crisis/?cs=95
  44. ↑ http://www.themercury.com.au/news/opinion/talking-point-seeds-of-change-on-rocky-ground/news-story/a2215dcdea9c0cf7f363de406f672d44
  45. ↑ http://www.techly.com.au/2016/03/24/tasmania-looks-pretty-f-cked-heres/
  46. ↑ http://www.news.com.au/national/tasmania/businesses-ignore-ministers-assurances-over-energy-security-and-prepare-for-worst/story-fnn32rbc-1227802139818?sv=e151b283bd2f4804e027dfd734c3d677
  47. ↑ http://www.abc.net.au/news/2016-03-30/hydro-tasmanian-revises-falling-dam-levels/7284020?WT.ac=statenews_tas
  48. ↑ http://www.abc.net.au/news/2016-03-31/lake-gordon-dam-level-fall-captured-in-dramatic-video/7289020
  49. ↑ http://www.abc.net.au/news/2016-02-28/prospect-of-tapping-lake-pedder-prompts-restoration-calls/7206026
  50. ↑ http://www.abc.net.au/news/2016-03-24/tasmanian-energy-use-campaign-urged-ahead-of-winter/7272778
  51. ↑ http://www.examiner.com.au/story/3817914/groom-calls-for-sensible-energy-use/?cs=95
  52. ↑ http://www.themercury.com.au/news/opinion/talking-point-uncertainty-is-the-most-certain-factor-in-tasmanias-energy-crisis/news-story/f9997c11458011542c8e4957df3679d5.
  53. ↑ http://www.theadvocate.com.au/story/3815368/last-one-out-can-just-forget-about-the-lights/
  54. ↑ http://www.theadvocate.com.au/story/3819291/tasmania-relying-on-150-diesel-generators-for-electricity-until-june/
  55. ↑ http://www.abc.net.au/news/2016-02-23/tasmanias-energy-crisis-explained/7194234
  56. ↑ http://www.abc.net.au/news/2016-04-02/hydro-tasmania-encourages-consumers-to-save-energy/7294332
  57. ↑ http://www.theaustralian.com.au/business/dataroom/banks-feel-the-heat-of-tassies-cable-capers/news-story/b6b5a0d9c996861ae561493f280408d5
  58. ↑ http://www.themercury.com.au/news/opinion/talking-point-hydros-mounting-money-woes-will-kinghit-state-coffers/news-story/9cdd8060f773df178fc1fab70c50e580
  59. ↑ http://www.themercury.com.au/news/opinion/talking-point-uncanny-sense-of-deja-vu/news-story/e61737d2486f46c5fad60d420a256c2a
  60. ↑ http://www.abc.net.au/news/2016-04-01/major-industry-unlikely-to-be-left-in-lurch-over-energy-crisis/7290996
  61. ↑ http://reneweconomy.com.au/2016/tasmania-missed-nine-key-energy-targets-73165
  62. ↑ http://www.theage.com.au/business/energy/cloudseeding-and-diesel-generators-tasmanias-battle-to-keep-lights-on-20160302-gn8g5h
  63. ↑ http://www.themercury.com.au/news/opinion/talking-point-opportunity-knocks-for-power/news-story/ea4559ca1a77964391fc0cbd2e0cc43e
  64. ↑ http://www.examiner.com.au/story/3674825/hydros-decisions-attacked/?cs=95
  65. ↑ http://www.examiner.com.au/story/3674633/hydro-tasmanias-performance-leaks/
  66. ↑ http://www.theaustralian.com.au/opinion/letters/tasmanias-power-crisis-should-galvanise-change/news-story/0d61cf7f90dac003affe01808072c83d
  67. ↑ http://www.afr.com/business/energy/tasmanias-electricity-crisis-wont-be-over-until-june-20160308-gndgfb
  68. ↑ Gramenz, Emilie (1 April 2016). "Tasmanian energy crisis: More diesel generators fired up to boost power grid". Hydro Tasmania has almost completed rolling out the first tranche of diesel generators to boost generation capacity, as the state's energy crisis deepens. ABC News. Retrieved 1 April 2016.
  69. ↑ http://www.abc.net.au/news/2016-03-08/energy-minister-gives-update-on-power-crisis/7228572
  70. ↑ http://www.zdnet.com/article/basslink-subsea-cable-repairs-rely-on-18-days-of-clear-weather/
  71. ↑ http://www.abc.net.au/news/2016-03-13/labor-greens-want-senate-inquiry-tasmania-energy-crisis/7243038
  72. ↑ http://www.abc.net.au/news/2016-04-02/senate-inquiry-into-tasmanias-energy-crisis-imminent/7293592
  73. ↑ http://www.themercury.com.au/news/tasmania/senate-probe-into-tasmanias-power-crisis-faces-shortcircuit-by-energy-minister-matthew-groom/news-story/917c4217fe62f22a285ec21c8e3fdf0a
  74. ↑ http://www.examiner.com.au/story/3827297/dam-levels-risk-extreme/?cs=95
  75. ↑ http://www.abc.net.au/news/2016-04-03/labor-keeps-up-pressure-over-tasmanian-energy-crisis/7295330?section=tas
  76. ↑ http://www.abc.net.au/news/2016-04-14/energy-minister-matthew-groom-to-front-senate-inquiry/7323852?section=tas
  77. ↑ http://www.examiner.com.au/story/3847084/turbine-due-for-winter-repairs/
  78. ↑ http://www.abc.net.au/news/2016-04-20/energy-minister-fails-to-say-if-aware-of-basslink-outage-concern/7340516
  79. ↑ http://www.abc.net.au/news/2016-04-16/tasmanian-treasurer-tight-lipped-on-energy-costs/7332448
  80. ↑ http://www.themercury.com.au/news/politics/tasmanian-labor-reveals-power-blackout-plans/news-story/7dd7f23eda8a23c7c40defccad9ec829
  81. ↑ http://www.themercury.com.au/news/tasmania/hydro-dam-levels-plummet-but-minister-says-small-households-dont-need-to-ration-power/news-story/bee8d3070238e27ec6ceef2420e16a07
  82. ↑ http://www.abc.net.au/news/2016-04-07/tasmania-energy-crisis-agriculture/7307220?section=tas
  83. ↑ http://www.abc.net.au/news/2016-03-31/north-west-tasmanian-businesses-urged-to-be-prepared/7287816
  84. ↑ https://www.thesaturdaypaper.com.au/news/environment/2016/04/30/tasmanias-power-crisis/14619384003188
  85. ↑ http://www.abc.net.au/news/2016-05-03/basslink-repair-delayed-another-week-by-wild-weather/7380630?section=tas
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