CopperString 2.0 would create a 40-year electricity tax on mums and dads and then leave a $1 billion taxpayer debt, rival power group APA says.

APA, which operates the Diamantina Power Station complex in North West Queensland, said it was deeply concerned that the transmission scheme had the potential to cause material adverse impacts on the region and Queensland more generally.

The comments came in a submission from APA strategy and commercial group executive Julian Peck for the Consultation Regulatory Impact Statement for electricity supply options for the North West Minerals Province.

Meanwhile CuString’s CRIS submission indicates its proposed transmission network linking the region to the national grid would save major electricity users in the North West Minerals Province at least 40 per cent of their delivered electricity costs.

Mr Peck said the only way the proposed CopperString 2.0 connection could deliver power to the North West Minerals Province at proposed prices was to smear more than a quarter of the total project costs
across all Queensland electricity users.

“Oakley Greenwood concludes this could see large customers face a staggering $57,000 hike to their yearly electricity bills,” he said.

“Even with massive subsidies from Queensland energy users and taxpayers, CuString Pty Ltd’s
claimed $90/MWh price for electricity is highly improbable.

“Modelling by Oakley Greenwood commissioned by APA, shows that the mining customers are likely to pay $150/MWh for energy delivered by CopperString 2.0.”

Mr Peck argued there were far superior alternatives for lowering cost and improving sustainability in the North West Minerals Province.

“For example, progressive development of renewable generation around Mount Isa and augmentation of the local network is a much cheaper, more reliable and environmentally sustainable option than building a 1100km transmission line,” he said.

“Under the government’s own ‘greater renewable penetration scenario’, anticipated pricing would be $76-
82/MWh in the medium to long term, which is even lower than CuString Pty Ltd’s claims of $90/MWh. This is backed by Oakley Greenwood’s analysis.”

He said also the business case for Powerlink to deliver a transmission connection (under the RIT-T process)
was $244 million cheaper than the CopperString proposal.

“APA has also identified an opportunity to duplicate the network connection between the Diamantina Power Station complex and the existing grid at a cost of $50 million, which is 2 per cent of the cost of building CopperString 2.0, ” Mr Peck said.

“A second connection will prevent a repeat of the supply disruptions in 2021 caused by faults in the network connections – not faults at the power stations, which were fully available.”

Mr Peck said APA’s long-term vision for the region was to develop a hybrid energy grid that aimed to reduce
carbon emissions and lower energy costs, while continuing to provide firm, dispatchable energy
through APA’s Diamantina Power Station complex.

“This would build on our decision to construct the 88MW Mica Creek solar farm to supply renewable electricity to existing APA customers, MMG Dugald River and Mount Isa Mines Limited,” he said.

“The Mica Creek Solar Farm will reduce the emissions intensity from APA’s entire Mount Isa generation fleet, taking it well below the Australian and Queensland average.”

Mr Peck said that given uncertain demand in the North West Minerals Province and low confidence that
CopperString 2.0 could deliver any meaningful cost savings, investment in CopperString 2.0
would create an unacceptable risk for Queensland electricity customers.