Nearly $2m compo paid to company over scrapped Macquarie Point power plan

Waste and energy company Veolia will receive a kill fee after the state government changed tack on its preferred power supply at Hobart's stadium site.

It comes as multiple businesses are paid significant sums to abandon plans for the site.

The cost of power connection is being finalised with TasNetworks.

The Tasmanian government has paid about $2 million not to build a thermal power plant at Macquarie Point, the site of the planned Hobart stadium.

The government is in final negotiations with BESIX Watpac to build the 23,000-seat stadium at the 9.3-hectare site on Hobart's waterfront.

Waste and energy company Veolia had signed an agreement with the Macquarie Point Development Corporation (MPDC) to develop a District Energy Infrastructure Scheme (DEIS), including a thermal energy plant.

However, it will not go ahead, as the government looks for other options to power the site.

The minister in charge of the precinct, Eric Abetz, has now written to Tasmanian Greens Deputy Leader Vica Bayley to reveal the cost of exiting that agreement.

"The final invoice received was $1,788,236.50 plus GST and was paid on June 24, 2026," Mr Abetz wrote.

Minister Abetz said connecting to the current network was "lower risk and cost" than continuing with the thermal energy plant concept.

He said the cost was not included in the stadium project budget of $1.13 billion.

"The DEIS predated any discussion on the development of a stadium on site and is not required for, or part of, that project," he wrote.

The cost is on top of $667,407 paid to a Melbourne-based firm, Renewable Intelligence, for earlier project work.

Mr Bayley said it was another example of "the slow-moving train wreck that is the Macquarie Point stadium".

"The fact that the government's so willing to just throw away millions of dollars of money, not to proceed with projects that they thought were important once upon a time — it just shows an absolute wilful disregard for our money, the taxpayers' money," Mr Bayley said.

In his letter, Mr Abetz said Veolia's work would "inform the final power supply and mechanical design solution".

"To deliver power to the stadium, an electrical supply connection will be made from the North Hobart substation, using capacity in the existing network which I understand is more cost effective than proceeding with the DEIS thermal power plant," Mr Abetz wrote.

He said the cost of connecting the stadium was still being finalised, and was not included in the current cost estimates.

Mr Abetz told a budget estimates committee earlier this year the stadium would require 9.7 megavolt-amperes (MVA) of power.

However, documents obtained by the ABC show TasNetworks has told MPDC the precinct would require 15.7 MVA — more than the existing capacity within the Hobart network.

At the time, the network operator put forward three potential locations for a new substation, either at Macquarie Point or the nearby suburb of Glebe.

Property developer Milieu was paid $1.257 million to abandon its plans for the Escarpment housing project, slated for Macquarie Point.

The Hobart Brewing Company was also paid $1.84 million to terminate its 10-year lease of The Goods Shed.

Meanwhile, the ABC revealed last week that an unsuccessful bidder for the stadium construction tender would be reimbursed $2 million for its costs.

The figure was revised up from the original cap of $250,000.

While the stadium was priced most recently at $1.13 billion, it is widely expected to cost more due to worldwide inflation caused by the Middle East war.

When announcing BESIX Watpac as the preferred construction bidder last month, Premier Jeremy Rockliff refused to repeat his commitment to cap the state's contribution at $875 million.

He has committed to releasing the cost before a final contract is signed.