Hydro Tasmania is a Government Business Enterprise owned by the State of Tasmania.
Hydro Tasmania is Australia’s leading renewable energy company, principally generating renewable energy and providing consulting services for environment and catchment management, renewable energy and power engineering.
Hydro Tasmania has a generating capacity of 2615 megawatts (MW) and produces on average 10,000 gigawatt hours (GWh) of electricity per annum with generation assets worth about $3.4 billion. Hydro Tasmania has gas-fired generation capability, owns one wind farm, 28 operating hydropower stations, numerous lakes and 64 dams in the State of Tasmania. Further wind capacity is held through a joint venture, Roaring 40s, with wind farms in Tasmania, South Australia, China, India and more under development.
Hydro Tasmania is committed to creating a sustainable future for our business and for future generations
Hydro Tasmania’s approach to business is underpinned by five values:
In 2006/07, Hydro Tasmania operated under strained conditions due to drought. Rainfall was an estimated 69.5 per cent of that expected and our water storages fell below 20 per cent for the first time since 1967 when similar inflows led to power restrictions, the introduction of daylight saving to Tasmania and finding over 100 MW of other generation sources. It was also the catalyst for building the then oil-fired Bell Bay Power Station.
At the end of the reporting period, the Bell Bay Power Station site and the gas turbines were sold to Alinta. Hydro Tasmania will continue to operate the station until at least 2009. Fortunately, the Basslink interconnector was in place for 2006/07 and, with gas-fired generation from the Bell Bay Power Station and gas turbines, Hydro Tasmania met electricity demand in Tasmania without interrupting customers’ supply.
On 13 February 2007, Hydro Tasmania announced an organisational restructure that included the integration of business lines and centralisation of shared functions to meet the changing market environment, reduce costs and to meet the challenges and opportunities that climate change brings.
Market and customers
Hydro Tasmania sells electricity and electricity derivatives products in the Australian National Electricity Market. Telecommunications services are provided to the Tasmanian electricity industry. Under the brand Hydro Tasmania Consulting, engineering and environmental consulting services are provided to a world-wide market in the areas of renewable energy, hydropower and transmission developments and environmental and water management. In 2006/07, services were provided to clients throughout Asia, Australia, India and the Pacific islands. Clients include electricity suppliers and distributors, catchment authorities, government and local councils and renewable energy developers.
Hydro Tasmania’s hydropower generation system is located in Tasmania, Australia. Hydro Tasmania Consulting clients are concentrated in Australia with an increasing geographical spread across the globe.
Its activities outside Tasmania are governed by the same values, governance, processes, policies, conditions and rules as apply to its Tasmanian activities.
*Adelaide office closed after the reporting period, on 31 July 2007
**New Delhi office officially opened on 17 February 2007. Staff are employed by Hydro Tasmania Consulting India Private Limited
***Port Moresby closed on 8 September 2006 with Melbourne office managing ongoing business
Hydro Tasmania’s scale at 30 June 2007
Subsidiaries and joint ventures
Additional information for subsidiaries (controlled entities) and joint ventures are in the notes to the Financial Statements on pages 136-140. The Hydro-Electric Corporation holds the following controlled entities at 30 June 2007.
All the joint ventures are 50 per cent owned by Hydro Tasmania.
Bell Bay Power Station operations and maintenance (Transfield BRW)
Information technology support services (LogicaCMG)
Hydro Tasmania currently identifies and engages with stakeholders likely to be impacted by its operations on a project-by-project basis, and with whom we have shared issues of interest or concern. Key stakeholder groups include:
- business partners
- Stakeholder and Portfolio Ministers, Government of Tasmania
- State, Federal and local government agencies and regulators
- community and special interest groups and bodies
- industry associations
- academic and scientific communities
- State and Federal Parliamentarians
- local and national media
- Tasmanian community.
Membership of associations
Hydro Tasmania is a financial member of the following strategic industry associations:
- International Hydropower Association (IHA) * #
- Environment Business Australia
- Renewable Energy Generation Association * #
- AusWind (Australian Wind Energy Association) *
- AP6 Renewable and Distributed Energy Generation Task Group *
- esaa (Energy Supply Association of Australia) *
- National Generators Forum (NGF) * #
- Australasian Emissions Trading Forum Business Roundtable
- Australian Financial Markets Association (AFMA)**
- Australian Energy Alliance *
- IEA Wind Hydro Integration Working Group *
- Canadian Electricity Association Technologies
- Australian Science Teachers Association *
- Australian Institute of Energy *
- Australian Water Education Network. *
* denotes committee membership
# denotes a position held in governance bodies
Hydro Tasmania is the trading name for the Hydro-Electric Corporation, which is a registered business,
100 per cent owned by the State of Tasmania.
It operates under, and is subject to, two State Acts - the Government Business Enterprises Act 1995 and the Hydro-Electric Corporation Act 1995. Its water licence is issued pursuant to the Water Management Act 1999.
The Honourable David Llewellyn MHA, Minister for Energy, has portfolio responsibility for Hydro Tasmania.
Governance structure as at 1 August 2007
Figure 2 Hydro Tasmania Governance Structure