House debates

Monday, 18 June 2018

Private Members' Business

Infrastructure (Question No. 823)

Photo of Bob KatterBob Katter (Kennedy, Katter's Australian Party) Share this | | Hansard source

asked the Deputy Prime Minister and Minister for Infrastructure and Transport, in writing, on 14 September 2017:

(1) Is the Minister aware of the hydroelectricity proposal that was originally launched as the 'Tully Millstream', promised by the LNP in 1995 and then soon after abolished by LNP Energy Minister Gilmore, and which resurfaced as the 'Reverse Tully Millstream' and has now evolved into the 'Southern Tablelands Development Scheme' (STaDS).

(2) Is he aware that this scheme adds 50,000 ha of irrigated (sugar cane) farm lands south of Ravenshoe West of Tully and moves the project from north of Tully, to south of Tully, and should deliver 600 MW of hydro and pump storage power from Tully.

(3) Is he aware that the Snowy Mountains 2.0 is ineffective in providing security on the north Queensland grid (1 million people), since that grid is nearly 5,000 km from Snowy Mountains 2.0 and line losses over that distance would be prohibitive, making the STaDS proposal a necessary adjunct to Snowy Mountains 2.0.

(4) Is he aware that when STaDS is added to the 'triangle of power' (Hell's Gates Dam, Kidston Pump Storage and Big Kennedy Wind Farm), the resulting 'quadrangle of power' will add 2,200 MW of baseload power and 400 MW of hydro.

(5) Is he aware that north Queensland's existing renewables will then be providing over 8 per cent of the entire national grid, which when added to the existing 6 per cent, will deliver nationwide 14 per cent renewables and that to go higher than 20 per cent would jeopardise the cheap $28 per MWh coming out of existing coal fired power stations, versus renewables at over $90 per MWh.

(6) As the STaDS proposal will provide 300 MW of hydro peaking power and 300 MW of pump storage peaking power; 300 million litres of ethanol; 300,000 tonnes of sugar (piped as liquor) to the Tully Mill for processing; and will fatten 500,000 cattle each year off algae ponds (grown from CO2 emissions which will be entirely 'carbon captured' in the algae ponds); when will the Minister commit to the Tully Hydro promised to the people of North Queensland and people of Tully/Ravenshoe 21 years ago.

Photo of Michael McCormackMichael McCormack (Riverina, National Party, Leader of the Nationals) Share this | | Hansard source

The answer to the honourable member's question is as follows:

(1) Yes. The Australian Government is providing $750,000 from the $580 million National Water Infrastructure Development Fund for the "Tablelands Irrigation Project Feasibility Study". This feasibility study will investigate the financial viability of this proposal and identify options for multi-purpose water use in the Upper Herbert catchment to support regional growth. The feasibility study will be completed by 30 April 2019.

(2) Yes.

(3) The Australian Energy Market Operator is responsible for maintaining power system security and reliability.

(4) Yes.

(5) The Australian Government places a high priority on the reliability and affordability of energy supply, while also meeting our international commitments. We must ensure that households and businesses have access to affordable and reliable power.

In this context, the Government has just announced a new National Energy Guarantee (Guarantee). The policy builds on the Finkel Review, which recommended the creation of the Energy Security Board (ESB) that has now recommended this program design. The Guarantee integrates energy and climate policy and will deliver a more reliable and lower emissions energy system, which puts downward pressure on prices. It requires retailers to manage their energy needs to deliver low cost, reliable and low emissions generation that guarantees reliability across the grid while meeting our international emission reduction commitments.

The Government will work with the ESB and the states through the Council of Australian Governments to implement the Guarantee.

(6) The Queensland Government is responsible for planning to meet current and future water and energy demand in Queensland and projects cannot proceed without that government's support. The Australian Government is open to considering proposals from the Queensland Government.