Hydro Tasmania to run combined cycle gas turbine for “commercial reasons”

Hydro Tasmania expects to run the Combined Cycle Gas Turbine (CCGT) at the Tamar Valley Power Station from tomorrow (Tuesday 5 September, 2017).

The decision has been made for commercial reasons, and is not related to energy security. Hydro Tasmania storages are above 41 per cent, which is very secure for this time of year (the highest level in four years for this time of year).

Mainland electricity prices are currently high. The CCGT will be operated to help reduce the amount of electricity Hydro Tasmania needs to import from Victoria over the drier months, therefore reducing overall cost.

The CCGT is expected to run as long as it’s commercially favourable to do so.

There’s been heightened media interest in the operations of the CCGT and TVPS following the 2015/16 energy supply challenge, and while the Tasmanian Energy Security Taskforce was deliberating. Hydro Tasmania has made this announcement accordingly.

Decisions about when and when not to operate the CCGT are a routine and regular part of Hydro Tasmania’s operations, and are unlikely to be accompanied by a media announcement after today. Its operation can be monitored online, in the context of Tasmania’s overall generation.

The High Reliability Level concept has been developed by the Energy Security Taskforce to help Tasmanians monitor energy security directly for themselves. It should also help prevent unnecessary speculation about energy security when it comes to routine operation of the CCGT.