Basslink Operating Agreement

Hydro Tasmania provided BPL (owner of the estate) with the recommendations of its cable experts. These recommendations are under review and Hydro Tasmania will continue to review its position as new information becomes available. Hydro Tasmania is making use of its contractual right to issue these instructions due to disagreements between Hydro Tasmania and BPL over the risk Hydro Tasmania wishes to take. National broadband company Internode has signed an agreement on the use of the new Basslink fibre optic cable to significantly increase its data storage capacity between Tasmania and the mainland. Basslink operates according to design and blocks protection when ambient temperatures exceed the limits of its design specifications. Hydro Tasmania`s price directive was set out in a market statement on 18 October. Hydro Tasmania`s tenders apply to capacities of more than 460 MW in winter and early spring (June 1 to October 31) and 445 MW from late spring to fall (November 1 to May 31) for two-way flows. Hydro Tasmania believes that the tender instructions will reduce the risk of the cable exceeding its design limits. Basslink is a monopoly with metal return[14] HVDC that operates with a rated voltage of 400 kV DC. The rated power of the connection is 500 MW (670,000 hp), although it is capable of transferring 630 MW (840,000 hp) from George Town to Loy Yang for up to 4 hours. Hydro Tasmania said it believed the instructions on basslink would reduce the risk of the cable running beyond its temperature design limits.

They are based on technical analyses carried out by Hydro Tasmania`s cable experts, who concluded that an existing reduction in the cable`s operating limit when exporting electricity to Victoria was not sufficient and that further reduction was needed to reduce the likelihood of failure. . . .