Frequently asked questions about energy
Some years we have less rain, and some years we have more rain. On average we can expect to have enough rain so that inflows to Tasmania's hydro dams are sufficient to generate a robust 9 000 gigawatt hours per year. Some years we may have less, but this will be balanced by the years when we have more. In the years when we have more rainfall, we will be able to generate more than 100 per cent of our baseline needs. And this is when we will be on net export – selling reliable, renewable energy into the national grid.
Not quite. That is why we refer to meeting our target on a "net basis". Hydro Tasmania will still import electricity via Basslink, and we may still, on occasions, need to use gas-fired generation at the Tamar Valley Power Station.
The way the national electricity market works means that we can import electricity from the mainland at times when Victorian prices are particularly low. This means that we can keep water in our major storages, our “batteries”, so that we have enhanced energy security. It also means that when electricity demand and prices in Victoria are higher, we can export electricity to the mainland.
The Energy Security Annual Report, issued by the independent Monitor and Assessor, notes that the Tamar Valley Power Station (TVPS) at Bell Bay provides diversity and acts as a safeguard in Tasmania' s energy mix. It contributes to Tasmania' s energy security, though its utilization has been decreasing with the development of wind generation in the State.
Tasmania currently has around 31 000 customers with connected solar PV systems[1]. Much of the generation is used by the households or businesses where it is installed and cannot be independently measured. It is estimated that solar contributes in the order of 200 GWh per year, or around 2 per cent of consumption[2]. This includes both the electricity consumed on the premises as well as exported to the grid.
[1] OTTER Energy in Tasmania Annual Report (PDF), February 2020
[2] Source – Opennem.org.au, based on data from AEMO Bureau of Meteorology and the Australian PV Institute
The target relates only to renewable sources for electricity generation. Gas and other fuel sources still have a place while they are the most practical and economic options, particularly for direct heat and for transport.
Future innovations, including the opportunities presented from hydrogen technology, and the potential for electric vehicles, will provide greater opportunities for emissions reductions beyond the electricity generation sector.