In April 2016, the Australian Government and the Tasmanian Government established this study of the feasibility of a second electricity interconnector (2IC) between Tasmania and Victoria. The study was initiated in response to energy supply challenges in Tasmania during 2015–16 caused by an extended outage of Basslink combined with low hydro water storage levels resulting from low rainfall.
The Terms of Reference for this study call for a feasibility assessment of a 2IC and advice on whether it would address energy security issues, facilitate development of Tasmania’s large scale renewable energy resources, and integrate with the Victorian electricity market and the wider National Electricity Market (NEM). The study was also to advise on implications for electricity consumers and related regulatory and financing issues.
A preliminary report by The Hon Warwick Smith AM was published in June 2016