Hydro Tasmania has welcomed the Federal Government’s progress towards implementing its commitment to expanding the Mandatory Renewable Energy Target (MRET) to deliver 20 per cent renewable energy by 2020.

CEO Vince Hawksworth said Hydro Tasmania had a strong pipeline of projects that will increase the overall level of renewable energy generation in Tasmania as well as new projects on mainland Australia, particularly through Roaring 40s – a 50-50 joint venture between Hydro Tasmania and China Light and Power.

“This will provide a more secure and diverse energy supply and further build Hydro Tasmania’s capacity and expertise and position as Australia’s leading renewable energy business,” Mr Hawksworth said.

“These projects will make a contribution toward Hydro Tasmania’s objective to become carbon neutral by 2012. The expanded MRET will provide incentive for improvements in the efficiency of the existing hydro generation and options for greater diversity of renewable energy generation technologies, further protecting Tasmania from the ongoing impacts of drought.”

Hydro Tasmania recently announced a 1000GWh project, which will identify and potentially develop - under the right market conditions - an additional 1000GWh of capability from the Hydro Tasmania generation system with a potential investment value of up to $400 million.

“Unlocking this and other vast renewable energy investment potential can be achieved quickly and easily by simply expanding the existing MRET scheme and providing the investment certainty necessary,” Mr Hawksworth said.

MRET is a proven and effective policy measure delivering significant investment and jobs in rural and regional Australia including Tasmania.

“The expanded MRET will be essential for realising these projects until an emissions trading scheme is fully implemented and a sufficient carbon price is reached. This may take some time.”

Mr Hawksworth said Hydro Tasmania looked forward to engaging in the design of this measure over the coming months.