Hydro Tasmania ditches $2b King Island wind farm project
(Hat tip to the Galileo Movement)
ABC News (AU) — October 28, 2014
State-owned power generator Hydro Tasmania has killed off a $2 billion wind farm planned for King Island because it says the project is not economically viable.
Hydro had planned to build a 600 megawatt wind farm on the island, with the power generated to be connected to the National Electricity Market via a high-voltage underwater cable across Bass Strait to Victoria.
The wind farm was expected to produce 2,400 gigawatt hours (GWh) of renewable energy for the national market, which is enough to supply around 240,000 homes.
Chief executive Steve Davy said changing economic conditions had seen the estimated capital costs for the wind farm alone increase by around $150 million.
“We have exhausted all avenues by which this concept could progress and now do not believe it appropriate to continue with the feasibility study,” he said.
“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
Tasmania’s Energy Minister Matthew Groom said Hydro had “done the right thing”.
“Hydro Tasmania has today made a commercial decision that they won’t be proceeding with the King Island Wind Farm proposal on the grounds that the proposal unfortunately has been found to be not economically viable,” he said.
Donald Graham from the No TasWind Farm Group said “Blind Freddy could see two years ago that the project would not be feasible”. (Continue reading here….)