State-run Hydro Tasmania CEO Steve Davy said the year-long feasibility work revealed the 600MW TasWind wind facility was not economically viable as a stand-alone project or as a staged connection to Tasmania.
The company will now focus on investigating the feasibility of a second inter-connector across Bass Strait.
The analysis also showed the project’s capital costs could increase by around $150m due to changing economic conditions. Moreover, extending the project as a staged connection to Tasmania would cost more than other direct connection options between Tasmania and Victoria.
Unveiled in late 2012, the project was planned to generate power, which will be transferred to the National Electricity Market (NEM) thorough a high-voltage underwater cable across Bass Strait to Victoria.
The 200-turbine wind farm was expected to generate 2,400GWh of renewable energy, which is enough for about 240,000 homes.
Steve Davy said: "Our investigations eventually found that TasWind was not viable even if the RET was maintained at the existing level.
"We have exhausted all avenues by which this concept could progress and now do not believe it appropriate to continue with the feasibility study. We will now focus our resources on further investigating the benefits and viability of a second inter-connector as outlined in the Tasmanian Government’s recent state budget."
Davy said a second inter-connector could provide significant strategic advantages for Tasmania such as support for further renewable energy development, including increased output from hydropower and wind, as well as greater market competition.
Image: Australia is considering the current Renewable Energy Target (RET) to determine the future of major renewable energy projects across the country. Photo: courtesy of dan/FreeDigitalPhotos.net.
