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Pumped Hydro Energy Storage

Battery of the Nation – Future State NEM Analysis Stage 1

  • $500k

    ARENA Funding

  • $1.00m

    Total Project Value

Project Basics

ARENA Program

Advancing renewables

Lead Organisation

Hydro Tasmania

Start Date

Nov 2017

Project Partners



Hobart, Tasmania




The Battery of the Nation initiative is investigating and developing a pathway of future development opportunities for Tasmania to make a greater contribution to the National Energy Market (NEM).

With the support of ARENA funding, the Future State NEM analysis explored how the Tasmanian hydro system can support further on-island renewables development, such as wind, through augmentation of existing hydro-electric power plants, pumped hydro energy storage development and further interconnection with the broader NEM. The analysis concludes Tasmania has potential to expand its role in the NEM and found that Tasmania as the Battery of the Nation is a viable and cost-effective option for supporting Australia’s future energy needs.

How the project works

The project built and tested models of a future Tasmanian energy landscape, including energy storage, generation and transmission opportunities and tested them against plausible wider NEM market constructs and options.

The project also considered the role and impact of further interconnection between Tasmania and the mainland, by building a ‘Tasmanian cost stack’ of new energy and capacity opportunities accounting for all components required to realise a new future capability. The ‘stacks’ were tested against a range of future NEM scenarios over a 10, 15 and 25 year time frame. The scenarios were derived from internal and external short and long term scenarios.


The Future State NEM analysis provides the evidence required to further investigate Tasmania as the Battery of the Nation as a sound investment pathway to further renewables in the NEM. The analysis shows Tasmania can make a significant contribution to the transformation of the NEM over the next two decades through investment in a combination of more interconnection, wind development and new hydropower assets in Tasmania.

The opportunity offers economies of scale, diversity and high quality new renewable energy resources combined with large scale storage that is able to be built with economic and timing optionality.


Contact information

Cameron Potter, Senior Project Manager / Lead Analyst