Hydro Tasmania is seeking expressions of interest for wind and solar projects capable of delivering up to 1,500GWh of renewable energy annually, as the state-owned utility seeks to expand its generation portfolio amid growing electricity demand and drought-affected hydropower resources.
The tender invites proposals from developers across Tasmania for projects that can become operational within the next five to six years. Hydro Tasmania will accept expressions of interest until 5 December, with the utility seeking to establish commercial offtake agreements that provide revenue certainty for project developers.
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Vedran Kovac, executive general manager of commercial at Hydro Tasmania, said the initiative aims to incentivise new renewable energy developments that can work alongside the state’s existing hydropower infrastructure to meet forecasted energy demand growth.
The utility operates Tasmania’s largest electricity generation portfolio, predominantly comprising hydroelectric facilities that have experienced reduced output due to multi-year drought conditions.
The procurement represents a major expansion of Hydro Tasmania’s renewable energy partnerships following regulatory changes last year that lifted cumbersome restrictions on solar PV developments across the state.
Tasmania’s renewable energy landscape has undergone considerable evolution in recent years, with the state making significant progress in utility-scale solar development.
The utility previously secured an offtake agreement for the 288MW Northern Midlands Solar Farm, which is scheduled to commence operations around 2027. The Northern Midlands project became Tasmania’s first utility-scale solar PV plant to receive approval, following its agreement with Hydro Tasmania.
The current tender takes place against the backdrop of a confirmed investment in the Marinus Link, a 1.5GW high-voltage transmission cable connecting Tasmania to Victoria’s electricity grid.
It will become the second interconnector between mainland Australia and Tasmania, after the 500MW Basslink, which connects the island state to the wider National Electricity Market (NEM).
Kovac noted that certainty around the Marinus Link project has provided confidence for renewable energy developers, with offtake agreements representing the next critical component for project financing.
“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,” Kovac said.
“It has to be commercial and stack up for Tasmanians, but working together, we can bring new energy online for the state.”
The Australian Energy Market Operator’s 2025 Electricity Statement of Opportunities forecasts relatively modest demand growth in Tasmania through to 2055, with projections showing a slight uptick followed by stable consumption patterns over the 30-year outlook period.
However, Hydro Tasmania’s procurement strategy appears focused on replacing drought-affected hydroelectric generation while positioning the state to capitalise on export opportunities through the Marinus Link connection.
