TMEC CEO Ray Mostogl hits back at Tasmania's energy crisis claims

The Tasmanian Chamber of Commerce and Industry and Labor MP Dean Winter have both spoken out about the state's "energy crisis" in the past fortnight, with the former calling on the government to deliver Marinus Link as quickly as possible.

However, Tasmanian Minerals, Manufacturing, and Energy Council (TMEC) chief executive Ray Mostogl said Tasmania's reputation as a renewable energy powerhouse had taken an unjust hit.

"Tasmania is not in an electricity crisis, and certainly, it is no more challenging than the cost-of-living challenges faced by all," Mr Mostogl said.

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"Only a few years ago, opportunities to attract new industrial scale loads were told there was capacity up to 400MW.

"Since then, two wind farms have come online, and more solar panels have been installed, totalling up to approximately 430MW of intermittent electricity over the years.

"Tasmania's load profile has not increased over the last 10 years. Despite that, official communication says Tasmania's generation and demand is delicately balanced. If we are in an energy crisis, how has this happened?"

Mr Mostogl said Tasmania's electricity generation trend graph demonstrates part of the story.

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"The graph shows the 'crisis' is not a crisis, but a consequence of where electricity in Tasmania is generated from. It shows a reduction in electricity generated in Tasmania using gas since 2008," Mr Mostogl said.

"The take-up of solar appears to be driving a wafer-thin marginal reduction in overall electricity needed to be supplied by Hydro Tasmania."

Mr Mostogl said that new wind farms have enabled Tasmania's electricity needs to be met without purchasing or generating non-renewable electricity, such as gas.

"The state does benefit from this," he said.

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"There is the emissions factor - the amount of CO2 attributed to electricity is the lowest in over a decade.

"And Hydro Tasmania's profits are greater without purchasing gas, which will fund its upcoming capital program in addition to its dividend to the state government to fund essential services."

Mr Mostogl said Tasmania has more options than the rest of Australia and most parts of the world regarding its electricity system.

"Sure, we all believe we are paying too much, but let us understand and optimise the fundamentals first," he said.

"Tasmania does not need haphazard price offsets and band-aid solutions, no matter how well considered at the time of rapidly reacting."

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