Hydro Tasmania is welcoming proposals from new wind and solar developments across the State to help bring more power into the Tasmanian grid. The company is looking to sign a commercial offtake agreement with a project or projects that can deliver up to 1500 GWh annually and be operational within the next five to six years.

The open tender is part of efforts to incentivize new renewable developments that can work in concert with hydropower to meet the State's growing energy demands. The Expression of Interest closes at 10 am on Friday, 5 December.

Market Demand and Growth Projections

Hydro Tasmania Executive General Manager Commercial Vedran Kovac said the Australian Energy Market Operator (AEMO) forecasts Tasmanian energy demand will grow from 2030. Investment in new solar and wind projects will enable existing and future energy-intensive industries to expand in Tasmania, according to Kovac.

“The best way to meet future demand is a combination of wind, solar, and hydropower,” Kovac said. The executive emphasized that the initiative must be commercial and stack up for Tasmanians, but working together, the company can bring new energy online for the State.

Financing and Development Support

Kovac indicated that certainty around Marinus Link had been a green light for project developers, and an offtake agreement was the next piece of the puzzle. He explained that signing an offtake agreement with a credit-worthy party like Hydro Tasmania is an important step for wind and solar developers to secure attractive financing terms to progress their projects.

The commercial offtake agreement structure is designed to provide developers with the financial certainty needed to advance their renewable energy projects in Tasmania's market.

Previous Solar Development Agreement

In 2024, Hydro Tasmania agreed to buy energy generated at a proposed 288-megawatt solar farm in the Northern Midlands. When operating at full capacity, this facility will be Tasmania's fourth largest generator.

This previous agreement demonstrates Hydro Tasmania's commitment to expanding renewable energy partnerships and sets a precedent for the type of commercial arrangements the company seeks through the current tender process.

Government Alignment and Market Integration

The open tender aligns with the Tasmanian Government's focus on expanding renewable energy to help meet energy needs both in the State and the National Electricity Market. This coordination between Hydro Tasmania's commercial strategy and government policy objectives supports the broader renewable energy transition in Tasmania.

The tender process is structured to identify projects that can integrate effectively with existing hydropower infrastructure while contributing to both local energy security and broader market participation through the National Electricity Market.

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