Recent Developments
New Developments
Tasmania's energy sector is currently undergoing its biggest period of change since the initial development of the State's hydro system. Tasmania, along with all other States and Territories, is part of the Federal Government's Energy Market Reform program. There are two nationally significant energy infrastructure projects currently under way as part of this program - Basslink and the Tasmanian Natural Gas Project.
At a State level the Office of Energy Planning and Conservation is considering policy options for feed-in tariffs for renewable energy producers.
Policy Development - Feed-in Tariffs
In 2008, as part of its strategy to combat climate change, the State Government announced that it would be considering the merits of introducing a mandatory feed-in tariff for renewable energy generated by householders where excess electricity could be fed back into the State?s electricity grid.
A Discussion Paper was prepared outlining some of the issues, costs and benefits of a feed-in tariff scheme. Submissions were invited from interested members of the public to assist in the development of a Tasmanian policy on feed-in tariffs from solar and other renewable sources of electricity which are generated by households and small business, where excess electricity can be exported to the electricity grid. Submissions closed in November 2008. The OEPC received over 40 submissions which are presently being collated and reviewed by our unit.
For a copy of the Discussion Paper please use the following link:
If you have difficulty downloading a copy of the Discussion Paper, a hard copy can be obtained from the Office of Energy Planning and Conservation, Department of Infrastructure, Energy and Resources, 10 Murray Street, Hobart, Phone (03) 6233 2009. Alternatively, you may send an email to energy@dier.tas.gov.au, and a copy will be sent to you.
Energy Market Reforms
Tasmanian Objectives
- securing additional sources of electricity generation to meet the State's future electricity needs at nationally competitive prices;
- introducing natural gas to the State to diversify the energy sector;
- developing mechanisms to effectively deal with the risks associated with drought or the loss of one or more of the State's major electricity users;
- developing the regulatory framework that maintains the reliability of the electricity supply industry and protects electricity customers, while encouraging new entrants and the development of market outcomes;
- promoting the development of Tasmania's renewable energy resources consistent with policy at the national and international levels; and
- ensuring the financial implications of reform are manageable inthe context of the Government's medium - term Fiscal Strategy.
Benefits
- significantly enhanced security of Tasmania's electricity supply
- increased flexibility in energy users choice of providers
- potential increase in incentives for industries wishing to establish a presence in Tasmania
- increases attractiveness of Tasmania for new investments
Tasmanian Natural Gas Project
The Tasmanian Natural Gas project is delivering natural gas to Tasmania for the first time and is one of the State's largest infrastructure developments of the past 20 years.
The 753km subsea and underground pipeline, costing over $400 million, was commissioned in 2002. It is delivering gas from the state of Victoria to Northern Tasmania, Southern Tasmania and Tasmania's North West.
Powerco Ltd, a New Zealand company, is currently building 700km of distribution networks throughout Tasmania, a project estimated at $100 million.
The natural gas project has significant direct benefits for the economy because the availability of gas also provides an opportunity to attract new investment from outside the State and provides existing Tasmanian businesses with a competitive alternative source of energy.
- Gas Rollout Map
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