The past 12 months have demonstrated the capacity of Hydro Tasmania to meet the challenges of a changing world.

With drought impacting on our hydro storages and increasing the price of power across the country, Hydro Tasmania managed its water resources and other generation and trading opportunities to meet its contractual obligations and maintain continuity of supply. At the same time we continued to invest in our ageing infrastructure, looked overseas for new business opportunities and provided jobs for around 800 people in Tasmania, interstate and overseas. And we did so while returning a profit.

This result was achieved during a time of significant uncertainty. Twelve months ago, the business had just begun operating in the National Electricity Market (NEM) utilising Basslink, national energy policy was unclear, our joint venture vehicle Roaring 40s was largely unproven, and Hydro Tasmania continued to experience below average inflows into its storages. Organisationally there were significant strategic decisions to be made about the way forward in a new and challenging environment.

I can report that in the year just gone - my first as CEO - the environment in which Hydro Tasmania operates has changed considerably.

We have sold the Bell Bay Power Station site and gas turbine assets to Alinta, which has confirmed it will develop a new gas-fired power station in the Tamar Valley to add to electricity supply security in the State. Basslink has more than proved its worth at a time of the lowest inflows to our storages in Tasmania in 40 years.

At the same time, the national response to climate change is now a key issue for the Australian community with Hydro Tasmania currently developing its strategic position. Roaring 40s is now recognised as the leading foreign wind energy developer in China and is poised for significant growth in Australia.