Project

Tarraleah Power Station Redevelopment

PROJECT STATUS
Announced
Tarraleah Power Station Redevelopment

The Tarraleah Power Station Redevelopment seeks to upgrade the existing Tarraleah Hydropower Scheme. The current scheme produces around 6.5 per cent of Hydro Tasmania’s total annual production. Many of the scheme’s components have aged and there are physical and operational constraints, making it unsuitable for the future demand for electricity.

The redevelopment is estimated to double the power station’s capacity from 104 megawatts (MW) to 220 MW with 20 hours of storage per cycle. The project will be developed by Hydro Tasmania.

Funding contributions

Federal Government

In 2018, ARENA provided $2.5 million in funding which was matched by Hydro Tasmania for the feasibility study.

Procurement

Procuring Agency: Hydro Tasmania

PROJECT HISTORY

Jun 2018 The Australian Renewable Energy Agency (ARENA) and Hydro Tasmania jointly provided $5 million in funding to support a feasibility assessment into the redevelopment of the Tarraleah power station.
Feb 2021 Feasibility study completed.
Aug 2021 The Tasmanian Government confirmed the $700 million project would proceed in its 2021-22 Budget.
Apr 2022 The Federal Government released a Pre-election Economic and Fiscal Outlook (PEFO) which announced an additional $65 million in funding to the project.
Oct 2023 Hydro Tasmania announced the preferred option for the site: full redevelopment with pressurised conveyance to deliver water from Lake King Williams to the new power station. The preferred option has a revised cost of $1.05 billion, an increase from the previous estimate of $700 million.
Jan 2024 The project received its required Environment Protection Notice from the Environment Protection Authority Tasmania.
Estimated Total Cost
(2023)
Sector
Energy
Procurement approach
Unconfirmed |
Location
Tasmania |
Resources