ARENA, TasNetworks to look into case for 2nd interconnector

The Australian Renewable Energy Agency (ARENA) and TasNetworks plan to co-fund a more detailed feasibility assessment worth AUD 20 million (USD 15.2m/EUR 12.8m) for a second interconnector between Tasmania and Australia's mainland grid.

A second interconnector across the Bass Strait would allow Tasmania to provide more electricity to the grid and act like a "giant battery." ARENA chief executive Ivor Frischknecht said in a statement on Friday that Tasmania has some of Australia's best wind resources, an established hydropower system and the potential to develop pumped hydro sites.

"To harness this potential, a second interconnector would need to be constructed to enable further generation and storage capacity to be delivered to the rest of the NEM [National Electricity Market]," Frischknecht added.

The more detailed assessment will be informed by findings of the feasibility studies as part of Hydro Tasmania's Battery of the Nation project. Preliminary results from these studies suggest that the benefits of a second interconnector could outweigh the costs by AUD 500 million.

(AUD 1 = USD 0.762/EUR 0.641)

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