<
https://reneweconomy.com.au/pumped-hydro-is-vital-to-the-future-grid-so-why-does-gas-exploration-get-all-the-tax-benefits/>
"Australia’s electricity system is entering a decisive decade. As renewable
energy dominates new supply, one question will determine whether the transition
succeeds or fails: can we keep the lights on when the wind doesn’t blow and the
sun doesn’t shine?
The Australian Energy Market Operator’s draft 2026 Integrated System Plan makes
the scale of the task clear. By 2050, the National Electricity Market will
require around 55 gigawatts and 618 gigawatt-hours of storage to maintain
reliability and affordability.
This is not a system that can be stabilised with short-duration solutions
alone. It requires storage that can deliver for days, provide inertia and
system strength, support frequency control, ramp rapidly, and restart the grid
after outages. On every one of these measures, pumped hydro is indispensable.
Yet despite its economic and system fitness, pumped hydro remains chronically
under-incentivised in Australia’s policy framework.
If offshore gas exploration qualifies for grossed-up deductions and uplifted
carry-forward because it is nationally important and risky, long-duration
storage should receive the same treatment given its role as critical
infrastructure in a decarbonised grid.
When gas companies drill a dry hole, the tax system shares the loss; when we
‘drill a dry hole’ for pumped hydro, we carry it alone.
Australia is not merely suitable for pumped hydro, it is uniquely advantaged.
Research led by Professor Andrew Blakers at the Australian National University
has identified around 22,000 potential pumped hydro sites nationwide, with an
estimated 67,000 gigawatt hours of storage potential.
To put that figure in context, modelling shows a fully renewable Australian
electricity system would need only about 450 gigawatt hours of storage.
Australia possesses close to 150 times more potential than required, allowing
developers to be highly selective and focus only on the best sites."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
