One of Tasmania's oldest hydro schemes will be transformed under plans to double the state's clean energy capacity.
The Australian Renewable Energy Agency has provided $2.5 million, to be matched by Hydro Tasmania, to assess the feasibility of upgrading or replacing the Tarraleah Power Station and improve other parts of the Tarraleah scheme.
The proposal more than doubles the scheme's capacity from 104 megawatts to 220 megawatts, contributing to the overall boost of 2,500 MW planned for Tasmania, Hydro Tasmania said in a statement on Thursday.
Feasibility work is expected to take about 18 months, with the redevelopment potentially costing up to $500 million over three years and supporting hundreds of jobs.
Hydro Tasmania CEO Steve Davy the 'battery of the nation' project was about locking in energy security and giving Tasmanians the lowest possible power prices.
"This upgrade will also transform Tarraleah into Tasmania's first truly 21st century hydropower station - adding stability and flexibility to Australia's future clean energy market," Mr Davy said in a statement.
"It offers a future that's clean, reliable and affordable.
"Doubling Tasmania's clean energy would also create a surplus, beyond our island's needs, to support mainland Australia.
"That's crucial to replace the coal power that's being phased out."
Hydro Tasmania recently identified 14 options as the state's best pumped hydro storage opportunities, delivering up to 4800 megawatts of energy, but it says these will now be whittled down to about 2500 megawatts of capability.
Modelling has shown the 'battery of the nation' and other clean energy opportunities would create up to $5 billion of dollars of investment and 3000 jobs in regional Tasmania over 10 to 15 years, the government enterprise says.
Australian Associated Press
