Hydropower / Pumped Hydro Energy StorageProject Battery of the Nation Future State NEM Analysis (Stage 2)
The Battery of the Nation initiative is investigating and developing a pathway for future development opportunities for Tasmania to make a greater contribution to the NEM.
Australia’s National Electricity Market (NEM) is transforming. There is a significant challenge ahead to plan for, and implement, a timely and orderly transition.
Victoria has experienced firsthand the impacts of this rapid change in the supply–demand balance with the retirement of the Hazelwood coal-fired power station in 2017. This event contributed to sustained high prices and even loss of power to customers. Victoria has since depended increasingly on imports from other regions to meet demand at peak times.
Victoria recognises the need for reasonably-priced, clean and reliable electricity to support its economy and quality of life, and has strong targets for more renewable energy development. With more variable renewable energy generation comes the need for more capacity and storage, to bridge the periods when the weather restricts the ability of wind or solar to generate, and to make good use of excess generation when wind and solar are abundant. Victoria will need access to significant amounts of energy storage to ensure it can keep the power system reliable while meeting its renewable energy targets.
Tasmania’s Battery of the Nation will unlock existing dispatchable hydropower capacity and new low-cost, long-duration pumped hydro energy storage to support variable renewable energy sources across the NEM. Further interconnection between Tasmania and Victoria will add energy supply diversity, increasing both reliability and competition. This will help manage the energy transition over coming decades by providing practical solutions that complement current Victorian renewable energy objectives.
The combination of Tasmanian and Victorian renewable energy sources can facilitate a smooth transition to the affordable, reliable and sustainable power system of the future.