04 December 2025
Our Market Engagement Approach has now been finalised, and endorsed by our Board of Directors, following a consultation process earlier this year. Thanks to everyone who contributed their thoughts. Feedback we received through the consultation process has been reviewed and incorporated.
The Market Engagement Approach sets out the principles and processes to explore contracting opportunities with Hydro Tasmania. It aims to provide clarity and confidence for proponents and outlines the stages for engagement as well as how evaluation criteria will be used to reach any potential agreements.
Tasmania’s energy demand is expected to increase over the next few decades, largely driven by increased consumption and electricity-intensive industries. To meet growing demand, we need more sources of clean energy.
Case study: TasRex solar farm
In December 2024, we finalised key terms for an offtake agreement local renewables company TasRex that will accelerate the development of a major renewable energy project for Tasmania.
Under the agreement, we will buy energy generated at a new $500 million solar farm, to be built by TasRex at Connorville Estates, near Cressy in the Northern Midlands.
At 288 MW, the solar farm will be capable of powering around 70,000 homes. When operating at full capacity, it will be Tasmania’s fourth largest generator after Gordon and Poatina hydropower stations, and the Tamar Valley Power Station.
Our EGM Strategy, Erin van Maanen, said the agreement demonstrated Hydro Tasmania’s support for new renewable development in Tasmania.
“The deal gives TasRex the confidence to proceed with this major development and deliver an important new source of renewable energy to help power Tasmanian homes and businesses,” Erin said.
About our approach
The Approach aligns with Hydro Tasmania’s Ministerial Charter by aiming to support the lowest possible power prices for Tasmanians and enabling economic growth and job creation in Tasmania. It emphasises accountability and transparency, while prioritising engagements that deliver long-term benefits for the state.
We seek to undertake these activities in a manner which will:
We’re open to engagement with a range of market participants and only projects that demonstrate clear economic benefits, financial viability, and long-term value to Hydro Tasmania will advance.
Head here to read more about our Market Engagement Approach.
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