[Greens-Media] Tas Greens_Bell Bay Unit Blow-up Revealed at Hydro Estimates_K Booth MP

[greens at parliament.tas.gov.au]

ENERGY STRATEGY IN TATTERS

- As Hydro Admits Bell Bay No.1 Unit Non-Functional &
- Uncertainty Over Tamar Valley Power Station's Connection to Grid

Kim Booth MP
Greens Shadow Energy spokesperson

Tuesday, 2 December 2008
Contact: State Parliamentary Offices of the Tasmanian Greens, (03) 6233
8300

www.tas.greens.org.au


The Tasmanian Greens today said that revelations from the Hydro Tasmania
Government Business Estimate Committee Hearings that the Bell Bay Power
Station No. 1 Unit is inoperational is extremely serious as it means
that approximately 120 megawatts have been removed from the energy
system at a time of growing concern over the impacts that the drought is
having on the hydro generating capacity.

Greens Shadow Energy spokesperson Kim Booth MP, who managed to get Hydro
Tasmania to confirm concerns over the status of the Bell Bay unit, also
forced Hydro to concede that the newly Aurora re-acquired Tamar Valley
Power station still has FCAS issues (Frequency Control Ancillary
Services Agreement) and grid stability restraints which has resulted in
the station being downgraded from its approximate 200 megawatt capacity.

Mr Booth also said that the capacity loss experienced by the Bell Bay
station represents approximately 50% of the state's non-hydro (water and
wind) generation when excluding Basslink and the non operational Tamar
valley station, and it is extremely alarming that the Minister, David
Llewellyn, was unable to detail any start date or funding  of any new
energy generating project.

"It is very telling that neither the Minister nor Hydro Tasmania saw fit
to inform the public that the gas-driven Bell Bay No. 1 Unit has
experienced a serious fault to the extent that it has 'shorted to
earth', which has resulted in approximately 120 megawatts being removed
from the State's total energy generation, but instead had to have this
update prised from them by the Greens during GBE hearings," Mr Booth
said.

"The cost of this shut down could be in the millions with estimates
being that it is costing Bell Bay approximately $70,000 per day and
unknown costs of repair."

"It was laughable for Hydro and the Minister to try and dismiss the shut
down of unit 1, given that both the Auditor-General and Ernst & young
have cited an increased reliance upon the Bell bay power station."

"The Auditor-General's report refers to  "the increased generation from
the Bell Bay thermal plant" (1), and Ernst & Young states that there
will be a need for Hydro Tasmania to "increase Basslink imports and
utilisation of the Bell Bay Power Station" (2).

"The Minister is spinning on the spot when he tries to say that Bell Bay
Unit 1 blowing up, and the subsequent loss of 120 megawatts capacity, is
not significant, when at the same time Hydro is concerned about
decreasing capacity due to the ongoing drought conditions."

Mr Booth also revealed during questioning that the newly re-acquired
Tamar Valley Power Station is experiencing serious FCAS issues which has
seen it's generational capacity downgraded

"Although the figure that has been flagged with me is that the Power
station has been downgraded to 135 megawatts was dismissed, the Minister
refused to detail the actual extent of the capacity downgrade."

"The loss from the Bell Bay power station represents 50% of the State's
non-hydro generation capacity, excluding Basslink and the
non-operational Tamar valley power station, a situation which the
Bartlett government would have been happy to have kept from the public
but which was dragged out into the light of day during these hearings,"
Mr Booth said. 

Sources:

(1)  Report of the Auditor-General, No. 2 2008, Volume 2; pg 42.

(2)  Ernst and young report, May 2008; pg 8.




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