News

Use super funds to upgrade grid for renewables: Flanery

John Thistleton18 December 2019
Large-scale solar farm

A large-scale solar farm. Photo: Australian Renewable Energy Agency.

Southern NSW hydro and solar power operator Tony Flanery says the Australian Government should use superannuation funds to pay for upgrading the national grid for renewable energy.

Australia’s aging transmission system is, according to many in the energy industry, holding back cheaper renewable sources. The Australian Energy Market Operator says the quick rise of renewables will need billions of dollars worth of new transmission lines to distribute energy to consumers.

The Flanery family-owned Hydro Power generates 30 MW from two power stations at Wyangala Dam near Cowra and Brown Mountain downstream from the Cochrane Dam near Bega. Hydro Power is also the sole investor in the proposed 26 MW Gidginbung Solar Farm north of Temora.

Gidginbung is stalled while AEMO and Essential Energy complete grid connection studies for the project.

Rule changes in February to the National Electricity Market require more onerous testing before connecting extra power to the grid, making the commissioning of the Gidginbung solar farm more expensive and time-consuming.

“On one hand this is understandable, on the other it is making it difficult,” Mr Flanery said.

The grid was designed around central, coal-fired generators serving mainly big populations. Mr Flanery says the best renewable sources are in the least inhabited areas, so maximising generation doesn’t necessarily equate to maximising distribution.

“There are solutions, it’s just the Coalition Government has a view the markets should determine how everything – demand, supply and price – is solved. That is not going to work in this instance. I think they should step in and take some control of it, really.”

Mr Flanery says a portion of compulsory superannuation funds should be quarantined to pay for upgrading the national grid for renewable energy.

“Rather than that [money] simply invested in stocks and bonds and real estate assets, my view is a portion of that should be put towards infrastructure, and a 10-year bond yield should be paid for the use of that money, back to the superannuation funds,” he said.

Money is freely available in Australia due to low-interest rates, but in Mr Flanery’s opinion it is not being distributed to where it is needed.

“Power generators and consumers are losing money because of the out-dated distribution network which drains energy from the line as it moves from its source of generation to the user,” Mr Flanery said.

“You could solve the problem by building better inter-connectors with superannuation funds.”

Tony Flanery

Farmer and solar farm proponent Tony Flanery. Photo: Supplied.

Mr Flanery said Australia was paying for a decade of in-fighting over the energy market. There was no investment, coal-fired generators knew their days were numbered and it made no sense for ‘lifetime extension’ investments.

There was no incentive for anyone to build solar or wind, “now we are throwing money at everything to try and catch up”, he said.

“A lot of government incentives are going into smaller programs. I do wonder whether if you put it towards central windfarms, distribution systems, solar farms and pumped hydro, it would be better. We are going to need back-up batteries and pumped hydro. If too much is done to undermine the pricing market, we run the real risk that the investment won’t stack up and that becomes a real problem for everyone,” he said.

Solar energy on pumps

Tony Flanery makes good use of solar energy on pumps on his properties in the Hilltops district. Photo: Supplied.

But Mr Flanery has a positive outlook on the take up of renewable energy across Australia.

“In five or 10 years’ time, I think we are going to be surprised at how much we have cut greenhouse gas emissions by virtue of transfer to renewables. I am probably surprised the government doesn’t seem to be getting a lot of traction or acknowledgement of what is out there and the uptake,” he said.

The Flanery family’s Hydro Power was NSW’s first privately owned power operator when they acquired the Wyangala Dam power station in 1991, and the last one to purchase a power station from the NSW Government in 2016, the Brown Mountain Power Station near Bega. Wyangala generates enough power for Young, Harden and Boorowa.

Original Article published by John Thistleton on The RiotACT.

What's Your Opinion?

10 Responses to Use super funds to upgrade grid for renewables: Flanery

Lisa Ashurst Lisa Ashurst 7:50 pm 20 Dec 19

Leave super funds the hell alone!

Shelly Davison Shelly Davison 4:10 pm 20 Dec 19

Using our super in that manner is theft. It’s not the governments money to touch.

Perhaps the govt should fix all those tax loopholes that mean that big corporations don’t pay tax? Then they’d have sufficient funds to create some tangible solutions. Seeing as how they haven’t been working on this, they don’t want to improve our country, they just want to improve the lining on their own pockets.

Isabel Robinson Isabel Robinson 6:35 pm 18 Dec 19

The federal government, being a generator of the sovereign currency, could pay for the up-grade. Certainly could if it cancelled one of those out-dated jets on order, or maybe one of the new subs.

Brian Curzon Brian Curzon 3:52 pm 18 Dec 19

With an Interconnected network grid with other countries they can Back Feed to us when our grid need topping up

That them earning income for their countries

Big bickies yes but worth the Infrastructure we need as an isolated Island with plenty of sun but limited water

Brian Curzon Brian Curzon 3:30 pm 18 Dec 19

Second suggestion

Use the $30 billion allocated to the high end of town

Build a Solar farm on every farmers property that that has suffered income because of the fires and some who suffered floods

The income would be annual to the farmers

Build the solar farm panels high enough for stock to graze underneath

The rain would hit the panels, soak into the ground and reduce run off

When and if there are enough solar generation Export to neighbouring countries

Those countries apply for World Bank or Aid to build there own Hydro Stations especially if they have a high tropical rain fall to store and fed their grid when the suns not out

Heather Compton Heather Compton 1:12 pm 18 Dec 19

sorry but its not the governments money to decide what they can do with my superannuation funds.

Fay Carter Fay Carter 12:41 pm 18 Dec 19

You’ve got to be kidding. !

Janne Leddin Hardy Janne Leddin Hardy 12:27 pm 18 Dec 19

Imagine the heat that is being radiated back into the atmosphere!

Lisa Kremmer White Lisa Kremmer White 11:23 am 18 Dec 19

Excellent idea. Now we just need some political will from the Canberra bubble. Not that that’s likely.

Brian Curzon Brian Curzon 11:06 am 18 Dec 19

Why not use the $30 billion promised in the budget to the top end of town

Leave our Super funds alone

That’s out insurance for our retirement

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