Advancing our renewable energy capability

By 2021 we will be:

• Maximising the generation of renewable energy in meeting the State’s electricity needs and supporting national electricity security and affordability; and
• Using energy more efficiently to reduce emissions and electricity costs for households and businesses.

Tasmania has an enviable renewable energy profile. Approximately 90 per cent of our electricity generation is from renewable resources, putting us in a unique position to pursue national opportunities. Approximately 10 per cent of our renewable energy comes from wind, and the remainder from hydro-electric generation, which delivers base load and peaking electricity for Tasmania’s major industrials, small businesses and households.

Our current energy profile is built on over 100 years of investment in hydro-electric generation. This system has supported the Tasmanian community and economy, and has positioned Tasmania well for the transition to a low-emissions economy. The Tasmanian Government is focused on generating electricity as efficiently as possible. In the past two years, Hydro Tasmania has spent close to $150 million and is planning to spend $400 million in the next four years to upgrade and modernise its ageing generation assets.

Tasmania has the opportunity to become a net exporter of electricity, which would support improved energy security and reliability, not only in Tasmania but also across the National Electricity Market (NEM). Tasmania’s flexible hydro-electric generation may assist in balancing the intermittent nature of other renewable energy sources across the NEM. The Interim Report released by the Tasmanian Energy Security Taskforce identifies a deficit of up to 1,000 gigawatt hours of average annual electricity generation for Tasmania to become a net exporter of electricity over the long term. Increasing the energy efficiency of our homes and businesses may reduce the draw-downs from Tasmania’s hydro storages, further enhancing the potential for renewable energy generation to meet the State’s electricity needs and improving our energy security.

The Council of Australian Governments (COAG) Energy Council has agreed to an independent review of national energy security and the reliability of the NEM, with advice on a coordinated, national reform blueprint.

The Australian Renewable Energy Agency (ARENA) will work with Hydro Tasmania on feasibility studies to assess a number of new pumped  hydro-energy schemes that could deliver up to 2,500 megawatts of additional capacity for the NEM and augmentation of the existing hydro system with the redevelopment of the Tarraleah Scheme and efficiency improvements at Gordon Power Station. This will enhance Tasmania’s hydro-electric and renewable energy supply for the benefit of the national market transition to a lower carbon emission future. The ARENA work will build on the joint study on the second interconnector by Dr John Tamblyn. This report found that a second interconnector has the potential to deliver significant benefits, but its full potential will depend on the ongoing development of the electricity system in both Tasmania and the NEM.

Tasmania will invest around $1 billion in maintaining and refurbishing the State’s existing hydro-power assets over the next 10 years. With the continued promotion of further renewable energy opportunities, Tasmania is well placed to become the renewable energy battery for Australia.

Maximising our renewable energy contribution to Australia’s electricity market represents an opportunity for new investment in Tasmania. The Tasmanian Government supports engagement between renewable energy developers and energy utilities that reduces barriers for new renewable energy projects.

Reducing energy consumption through cost-effective energy efficiency actions will reduce electricity bills for businesses, government agencies and households, and will also improve the management of Tasmania’s electricity supply network.

The Tasmanian Government has established the $10 million Tasmanian Energy Efficiency Loan Scheme (TEELS) that provides no-interest finance to households and small businesses to install energy efficient equipment and appliances.

The actions for this priority area focus on:

• Continuing to invest in existing hydro-electricity assets to ensure the maximum potential renewable energy is generated to assist in lowering emissions;
• Assessing opportunities for increasing Tasmania’s renewable energy resources and progressing viable commercial opportunities;
• Assisting small businesses and households to reduce their energy use and save money on electricity bills by overcoming barriers such as up-front capital costs;
• Undertaking a feasibility study into energy efficiency financing options such as Environmental Upgrade Agreements (EUA’s);
• Supporting the improvement of street lighting energy efficiency by helping to overcome barriers related to metering and ownership of lighting infrastructure and hardware; and
• Improving the energy efficiency of Tasmanian Government owned and leased facilities by monitoring energy usage, capacity building, conducting energy audits and capital upgrades.