Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for the Environment and Energy, Senator Birmingham. Can the minister explain to the Senate the Turnbull government's investment in pumped hydro energy storage across Tasmania and the benefits to the north-west coast?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

I thank Senator Colbeck for his question. He is a fierce advocate for families and businesses across Tasmania, particularly in northern and north-western Tasmania. For nearly 90 years, as Senator Colbeck would well know, the Tasmanian hydro scheme has been providing reliable and affordable energy for the use of Tasmanians and, since the National Energy Market came along, for the benefit of all Australians in the NEM. Today it operates at around 30 different power stations in the hydro system, generating more than 2,200 megawatts of capacity. But the Turnbull government knows, thanks to the advocacy of strong Tasmanian Liberals, that we can get even more from the Tasmanian hydro scheme, particularly via support for pumped hydro. As Australia's Chief Scientist has acknowledged, pumped hydro is the most mature form of energy storage around the world, accounting for around 97 per cent of current energy storage.

This potential for more reliable, dispatchable and affordable energy is why we are investing further in pumped hydro. It's why we're pursuing the Snowy 2.0 scheme across New South Wales and Victoria. It is also why, through ARENA, we've identified sites around Australia, including 14 high-potential sites in Tasmania, for more pumped hydro. It is estimated that investment across those 14 sites could generate up to $5 billion worth of investment activity in Tasmania and sustain around 3,000 jobs in regional Tasmania. An outstanding example of this possibility is the Tarraleah Power Station, for which the Turnbull government is providing some $2½ million to ensure a full feasibility study into the potential for pumped hydro that would provide real economic benefits in north-western Tasmania in terms of the energy supply across Tasmania and right across Australia. Ultimately this is just another example of the Turnbull government delivering more investment in Tasmania, more jobs for Tasmania and more—and more affordable—energy for all Australians.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Colbeck, a supplementary question.

Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Can the minister inform the Senate of how the Turnbull government's National Energy Guarantee will deliver affordable and reliable energy for Tasmanians, including in the electorate of Braddon?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

The National Energy Guarantee represents the first time we have a policy that is clearly designed by the experts, comprehensively backed by business and many other groups, supported by states and, most importantly, with modelling indicating that it will cut prices and improve reliability. The NEG will do this. It will deliver more affordable, more reliable energy by ending subsidies for energy, which of course are passed on to all consumers; by creating a level playing field that ensures that all types of energy are part of Australia's energy mix rather than playing favourites; by providing certainty for investors, meaning more supply and in turn lower prices; and by reducing volatility by ensuring there is reliable and affordable power there for every Australian when they flick the switch. The modelling indicates a benefit of around $300 for each Australian household, on average—a real benefit flowing from more affordable and reliable energy. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Colbeck, a final supplementary question.

Richard Colbeck (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Can the minister advise the Senate as to how lower prices support economic growth and jobs in Braddon?

Simon Birmingham (SA, Liberal Party, Minister for Education and Training) Share this | Link to this | Hansard source

It's not just households that would benefit under the National Energy Guarantee. There's the $300 average household benefit that I spoke of. But the modelling suggests that a 23 per cent reduction in wholesale electricity prices would flow through to businesses, allowing them to invest in their enterprise, to create more jobs and to grow the economy. Small businesses, such as cafes, could save hundreds of dollars a year; medium-size businesses, such as supermarkets, could save up to $400,000 a year; and large energy-intensive manufacturers could well save millions of dollars a year. These are all instances in which businesses could invest back into their businesses—employing more staff, lifting wages, growing more jobs, doing exactly the types of things that have been happening right across Tasmania thanks to the work of the Hodgman Liberal government in Tasmania along with the Turnbull coalition government here in Canberra. That's why we've seen record jobs growth nationally, record jobs growth in Tasmania, the strongest circumstance for all Tasmanians thanks to good, strong Liberal advocacy. (Time expired)