Vote of confidence in Tasmania's renewable energy potential

25 February 2019

Hydro Tasmania welcomes today’s announcement by the Federal Government that could trigger the unlocking of Tasmania’s full renewable energy potential.

The proposed additional 1200MW of interconnection capacity between Tasmania and Victoria would mean that the Tasmanian hydropower system would better support the National Electricity Market (NEM) as it transitions over coming decades. The funding announced today brings that a step closer to reality.

“Over an extended period, we’ve been investigating and supporting the case for additional interconnection, both for Tasmania’s capacity to provide much-needed support to the NEM, and for the value it would bring to the state,” said Steve Davy, Hydro Tasmania’s Chief Executive Officer.

“We’ve undertaken significant work over the past two years in collaboration with TasNetworks, the State and Federal governments and with the support of ARENA to demonstrate the value of additional Bass Strait interconnection.

“We’re seeing growing recognition in Tasmania, and nationally, of how important this development is to the state and more broadly to Australia’s energy future.

“Additional interconnection is the path to market for Tasmania’s flexible, reliable, dispatchable renewable energy; it’s also a mechanism to enhance our own energy security.”

The NEM is undergoing unprecedented change through the rapid transformation of its generation mix. This transition is bringing significant uncertainty and risk to generators and customers.

Tasmania has a unique opportunity to provide 1200 megawatts of flexible, reliable, dispatchable renewable energy to support the NEM through a period of change, by using the latent capacity in our hydropower system and developing new renewable energy and storage resources.

“We have what the nation needs and additional interconnection will make all of this work and get Tasmania’s flexible energy capacity to the national market,” Mr Davy said.

“Today’s announcement takes the Battery of the Nation from a bold vision to an actionable plan,” Mr Davy said.

“Battery of the Nation is part of the solution needed to support a national energy market in transition, and will deliver multiple benefits in Tasmania.

“Construction of more renewable generation will put downward pressure on energy prices for Tasmanians, create much-needed jobs in regional areas of the state and bring broad economic benefit to Tasmania,” he said.



Released for Hydro Tasmania by Cassandra Leigh / 0409 722359 /


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