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Pumped hydro could generate 4800 MW of potential capacity across 14 sites in Tasmania, according to a study released today by Hydro Tasmania.

On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) provided $300,000 for Hydro Tasmania’s project which assessed around 2,000 potential sites for pumped hydro across Tasmania.

Out of an original shortlist of 30, Hydro Tasmania have now highlighted 14 ‘high potential’ sites for pumped hydro plants around eight existing reservoirs across Tasmania’s central highlands, north and west coast.

These sites represent a combined capacity of up to 4800 MW, which are expected to be refined down in the next phase to around 2500 MW of high potential sites. Overall the estimated capital cost across the potential projects is in the region of $1.1 – $2.3 million per MW.

In total, ARENA has committed up to $2.5 million for Hydro Tasmania’s ‘Battery of the Nation’ initiative which would double Tasmania’s existing flexible generation capacity. The Battery of the Nation is a bundle of proposed projects that include redeveloping existing hydro-electric power stations, building new pumped hydro plants and expanding the role of Tasmania in the NEM using new wind power and hydro power.

ARENA CEO Ivor Frischknecht said the initial concept study for new pumped hydro reinforces Tasmania’s potential to provide large-scale storage for the mainland.

“As Australia’s renewable energy make-up continues to grow, energy storage will be increasingly necessary, which is why this project is so important”

“Tasmania has been identified as the Battery of the Nation for a reason, as it has some of the best wind resources and existing hydro-electric power,” Mr Frischknecht said.

“Unlocking most of these opportunities requires additional interconnection, which is why ARENA is also working with TasNetworks to assess the feasibility of a second interconnector,” he said.

Hydro Tasmania CEO Steve Davy said the work confirms there’s comfortably more than 2,500 MW of reliable and cost-effective pumped hydro potential in Tasmania.

“Battery of the Nation is about locking in our island’s energy security and giving Tasmanians the lowest possible power prices. It offers a future that’s clean, reliable and affordable,” Mr Davy said.

“Doubling Tasmania’s clean energy would also create a surplus, beyond our own needs, to support mainland Australia. That’s crucial to replace the coal power that’s being phased out.”

ARENA has provided more than $21 million in funding for feasibility studies into pumped hydro projects across Australia, including for Snowy 2.0, Cultana and Middleback Ranges in South Australia and Kidston in Queensland. Flexible capacity, including storage, is a critical component of enabling more wind and solar power in Australia’s energy system.

About the Battery of the Nation

The Battery of the Nation initiative is setting up a blueprint for how Tasmania’s renewable resources are developed over the coming decades. With the support of ARENA, the initiative is advancing studies into projects that if realised, would lock in full energy security for Tasmania, help give Tasmanians access to the lowest possible power prices and deliver reliable, affordable renewable energy. By boosting the hydropower system with pumped hydro, with increased wind generation and more interconnection, Tasmania could also significantly grow its contribution to a future National Electricity Market (NEM).

ARENA has committed $2.5 million in funding for initial pre-feasibility studies to redevelop existing hydro-electric power stations at Tarraleah and Gordon, to identify and scope high potential Pumped Hydroelectric Energy Storage (PHES) sites and to explore the potential of Tasmania to play an expanded role in the NEM. ARENA has also committed $10 million to funding a business case for a second interconnector.

ARENA media contact:

0407 125 909 |

Download this media release (PDF 134KB)

Last updated 12 May 2022
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