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Features Australia

Florence gets stuck in a pickle

Where’s the Snowy rescue plan?

27 May 2023

9:00 AM

27 May 2023

9:00 AM

I’m something of an expert on books for young children, having read a great many over the past decade. My four-year-old grandson is a particular fan of The Railway Series (aka Thomas the Tank Engine) written by the Reverend W. Awdry.

To tell you the truth, I find the books a bit annoying because the stories are always the same. The trains are happily performing their roles on the Island of Sodor; some disaster happens; Thomas and his friends come to the rescue; train life returns to normal.

But I was reminded of the heroic efforts of Thomas and his friends – Percy is my favourite – when reading about what has happened in the Snowy 2.0 project and ‘Florence’, the gigantic tunneller, falling through some soft ground and becoming hopelessly stuck. She is now wedged in tonnes of earth and rocks and appears to be immovable.

Sadly, for the Snowy Hydro Corporation and the newly appointed chief executive officer, there are no Thomas and his friends to solve the problem and get Florence working again. It’s not happening on the Island of Sodor but in a tricky spot, deep in the Snowy Mountains.

But who can forget the promises made by Malcolm Turnbull, then prime minister, about the potential of Snowy 2.0? Pumped hydro would be one of the missing jigsaw pieces that would enable a deep penetration of wind and solar generation in our electricity grid. It was going to cost around $2 billion, although this had the same credibility as the original estimates of the cost of the NBN, which were devised on a drink coaster.

Moreover, the figure of $2 billion never included the cost of the additional transmission needed to hook the project up to the grid. That would cost more billions and would be subject to fierce local opposition as the required pylons and cables cut an ugly swath through rural land.


Even so, those were the salad days for the project. Water would be pumped up during the day to the upper dam – electricity prices would be cheap and generated mainly by renewable energy – and released when needed to the lower dam, thereby generating electricity. OK, there’s a lot of energy lost in the process and, of course, no new electricity is actually generated. And given the capital costs, it’s not clear it would ever generate a rate of return. But what the heck, when you are saving the planet.

We were told that Snowy 2.0 would act like a giant battery, providing needed backup to intermittent renewable energy. The nominal capacity was around 2,000 megawatts, about the size of a standard coal-fired power station, although it would only be able to operate for several hours each day. It was to be ready in 2023-24, which now sounds hopelessly optimistic.

The most likely scenario now is that the project will be completed by the end of the decade and the total cost, not including transmission, will be around $10 billion. Let’s not forget that stuck-Florence is costing an arm and leg because this type of specialised machinery – she was built in Germany – is leased and daily fees will still be ticking over. One way or another, the operators will find a way around the Florence problem.

The bigger picture is this: renewable energy will simply not work without sufficient backup and it’s the backup conundrum that has everyone stumped. Even if Snowy 2.0 had gone well, it is only a tiny part of the backup solution. The trouble is that Australia’s topography simply doesn’t lend itself to multiple pumped hydro projects.

The Kidston project in far-north Queensland has been nearly a decade in the making and this was starting, by chance, with two dams at different levels that existed because of a former mining operation. The biggest capital contribution to the project has come from governments, with the investors contributing a smaller amount. When it is eventually finished, it will help power households in the area but any cost-benefit analysis would show that this project should never have gone ahead.

The hope of the side was always batteries, the bigger the better. But the assumed technology leaps have simply not occurred.  They provide a few hours of power and do help with stabilising the grid through frequency control. But given the components required to build these batteries – think lithium, cobalt, nickel – and the shortage of them, it’s not clear that batteries are a universal solution. They also remain expensive, in part because so many countries around the world are following the same path: renewable energy plus batteries.

Gas plants are the obvious solution, but they of course emit carbon dioxide. While closed-cycle gas turbines are much more efficient than the open-cycle ones – they use less gas and emit less carbon dioxide – it is the latter which are best designed for backup because they can be cranked up at short notice to cover shortfalls from renewable sources. In other words, to make solar and wind viable means of generating electricity, they need to be backed up by relatively emissions-intensive gas plants. You know it makes sense.

It’s also important to note here that the buildout of land-hungry wind and solar means that any existing coal-fired plant is made obsolete before its time. That is because these plants are simply not designed to provide backup power; rather they are designed to provide continuous power with constantly turning turbines. When made to provide backup power, their operating and maintenance costs skyrocket.

The fact is that even the pious Climate Change and Energy Minister, Chris Bowen, cannot make the wind blow or prevent the sun from setting. Even in his true-believing world, there is a need for backup power.  Building more and more solar and wind installations doesn’t overcome this problem and is highly inefficient of itself.

A number of countries, including the UK, Canada and France, have become very lukewarm about nuclear energy but are now having second thoughts. These governments are committing to substantial investments in new nuclear installations, which are not necessarily well-designed to provide backup but can do so without any emissions.

Over time, these governments may conclude that it’s just easier (and cheaper) to go fully nuclear and forget the turbines and solar panels. After all, these renewable installations wear out quickly – probably off-shore turbines last only 15 years – and will need to be replaced. This will leave Australia in a pickle, with a motley collection of wind, solar, gas plants, ugly big batteries and possibly Snowy 2.0, adding up to unreliable and expensive power.

Just perhaps a future government will see sense and take a different path that involves nuclear power. This could be about the same time that Florence is finally rescued from her uncomfortable resting spot.

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