Power costs on the line

By Melissa Grant
UNDERGROUND power for the Wonthaggi desalination plant will cost $320 million, an estimated $8 million less than overhead powerlines, according to a power lobby group.
The Power Grid Option Group (PGOG) revealed its costing for the first time during a public meeting in Lang Lang attended by about 200 people last week.
The group’s estimate for underground power is a far cry from the $770 million to $880 million, originally estimated by the Department of Sustainability and Environment (DSE).
PGOG chairman Alan Fraser said the group’s indicative cost was directly comparable with the overhead cost of $328 million when compensation and contingency were included.
Australia’s leading economics adviser, Access Economics, and another leading accountancy firm have confirmed the group’s estimates.
Cardinia Shire mayor Bill Pearson, who attended last week’s public meeting, said it was now up to the State Government to decide the plant’s power source.
“I drew a great sense of personal satisfaction from the Secretary to the Premier (Luke Donnellan) turning up and I genuinely believe that if they (State Government) weren’t considering an underground option he wouldn’t have turned up,” Cr Pearson said.
The Cardinia Shire Council has backed the PGOG’s push to have powerlines put underground, putting up $300,000 to have the option thoroughly investigated.
Cr Pearson said the future of Cardinia’s farmers – and Victoria’s food bowl – were at stake.
“This is the finest land in Victoria for horticulture and growing vegetables, and the State Government’s reports are pointing to it (power investigation corridor) as a place they will have to grow in the future,” he said.
Mr Fraser was now confident that the State Government would adopt an underground option.
“By doing the research that should have been done by others, the group has built a case for underground, which has led to it being costed by each consortium bidding for the project – something that would not have happened otherwise.”
Access Economics’ technical adviser, Dr Robert Barr, also an electricity network and distribution expert, said the PGOG had “educated” the industry about the latest high voltage direct current (HVDC) technology.
“Just four or five years ago the underground option would not have been feasible but now, with significantly improved technology, underground power using HVDC lightweight technology meets all parameters of time, cost and reliability and is a genuine option for power supply to the desal plant,” he said.
Mr Fraser said the final decision to put powerlines above or below ground would rest with the State Government as it reviewed each proposal put forward by the consortiums bidding for the $3 billion project.
Federal Environment Minister Peter Garrett signed off on the desalination plant project last month. It is expected to supply up to 150 billion litres of water a year to Melbourne and the surrounding region.
Bids for the project closed last Friday and the State Government is expected to announce the successful bidder in September.