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

The Tasmanian government has paid Veolia, a waste and energy company, approximately $2 million to abandon plans for a thermal power plant at Macquarie Point, the site for a proposed Hobart stadium. Veolia had signed an agreement with the Macquarie Point Development Corporation (MPDC) to create a District Energy Infrastructure Scheme (DEIS), which included a thermal energy plant.

However, the government is now exploring alternative power sources for the stadium site. Tasmanian Greens Deputy Leader Vica Bayley criticized the government for what he called a "slow-moving train wreck" by willingly spending millions of taxpayer dollars on abandoned projects. The final cost of Veolia's exit was revealed to be $1,788,236.50, including GST, and was paid on June 24, 2026.

The minister in charge of the precinct, Eric Abetz, stated that connecting to the current network was a lower risk and cost-effective option compared to continuing with the thermal energy plant concept. The DEIS predated any discussions on the stadium development and is not required for the project.