We’re seeking proposals from the industry for the project’s construction and the supply of generation equipment for the proposed new power station.

The Tarraleah hydropower scheme is in central Tasmania. It’s one of state’s oldest schemes built progressively since the mid-1930s. That makes some parts more than 80 years old. Working alongside our clever colleagues at Entura, we’ve carefully examined options for Tarraleah’s future.

We determined that fully redeveloping the scheme would provide the most value to Tasmania. This would see Tarraleah generate more clean energy to help meet the forecast growth in energy demand, and help power the state for generations to come. Plus, it will be part of the solution for Australia’s decarbonisation challenge and transition away from fossil fuel.

Kicking off procurement

We’re now seeking an EPC (Engineering, Procurement and Construction) contractor to work alongside a supplier for the critical electrical and mechanical components of the new station. 

The first stage of procurement is a prequalification process ahead of the start of the Request for Proposal phase. The next stage, once approved, will be an Early Contractor Involvement process. This is a collaborative (and competitive) process designed to optimise the project’s final design and ensure value for money.

Our CEO Rachel Watson said that the project would offer opportunities for businesses, large and small.

“We are going out to the market to request proposals from construction contractors suitably qualified to build the reimagined scheme. We’re also making sure that local businesses will have ample opportunity to subcontract to the project,” Ms Watson said.

Ms Watson said that procurement was an important part of ensuring a high degree of confidence and certainty in the project constructability and the final cost estimate.

“The Tarraleah Scheme has given more than 85 years of faithful service. But it is reaching the end of its operational life and there is no ‘do nothing’ option for its future.

“Our proposal is to fully redevelop the scheme, building a more efficient water transfer system and a new power station that can generate more energy from the same amount of water.

“Investing in the scheme’s future means more energy and flexible capacity to meet the forecast growth in demand, address the risks posed by ageing assets and increase revenue and value that can be returned to Tasmanians.”

Ms Watson said that Tarraleah was one of two major hydropower construction projects proposed. The second is a long duration pumped storage project at Cethana.

“The Australian Energy Market Operator (AEMO) confirmed that long duration storage is essential, with hydro and pumped hydro central to Australia’s grid reliability,” Ms Watson said.

“In an energy future based increasingly on wind and solar, our proposed 750MW pumped hydro project at Cethana will help underpin future energy reliability.”

Background and project status

Hydro Tasmania is calling for requests for proposals to construct the proposed Tarraleah redevelopment from suitably qualified, interested parties. This is the first part of a staged procurement process and will provide more confidence in what it will take to construct the project and what it will cost to build. The project has not yet reached a Final Investment Decision. It will require environmental and planning approvals as well as approval by the Tasmanian Parliament.