TURNBULL’S SNOWY HYDRO ANNOUNCEMENT UNRAVELS BY LUNCHTIME

March 16, 2017

Malcolm Turnbull’s Snowy Hydro announcement has unravelled within hours with the Prime Minister’s “$2 billion commitment” turning into a $500,000 feasibility study by midday.

After the Prime Minister’s office briefed journalists that the project involved a commitment of $1.5 billion - $2 billion to add 2000 MW of new generation capacity, Snowy Hydro itself has now confirmed the commitment from the Government is actually $500,000 for a feasibility study “ which could support ” the possibility of up to 2,000 MW of new storage , not new generation.

This funding is to come from ARENA, the Labor established agency the Abbott-Turnbull Government has repeatedly tried to abolish. In fact, Malcolm Turnbull himself voted twice to abolish ARENA.

The Turnbull Government’s Snowy Hydro announcement is a feasibility study on an unfunded project that at best won’t deliver storage capacity for the best part of a decade.

It won’t create any new generation capacity, won’t resolve the investment uncertainty that is crippling new electricity sector investment, and it won’t deliver a solution to the energy crisis gripping Australia.

The Prime Minister’s former energy adviser, Danny Price, has describe the scheme as “a thought bubble”.

He went on to say “We have an emergency that needs to be managed now, not with thought bubbles”.

The real challenge for the electricity market is to support new generation now, not in five or ten years’ time.

A feasibility study followed by years of construction isn't going to support the industries and jobs that are under threat today.