Hydro Tasmania has reached a major milestone in its proposal to redevelop the iconic Tarraleah hydropower scheme, kicking off the first stage of the construction tender. 

This major infrastructure project is seeking proposals from the industry for the project’s construction and for the supply of generation equipment for the proposed new power station. 

Hydro Tasmania CEO Rachel Watson said that the project would offer opportunities for businesses, large and small. 

“We are going out to the market to request proposals from construction contractors suitably qualified to build the reimagined scheme. We’re also making sure that local businesses will have ample opportunity to subcontract to the project,” Ms Watson said. 

“We will utilise the Industry Capability Network Tasmania as a central part of our approach to ensuring Tasmanian business participation.” 

Hydro Tasmania will also host an industry briefing, to share more about the procurement stages and how businesses can participate. 

Ms Watson said that she was thrilled to be at the helm of Hydro Tasmania for this significant project milestone.

“This is an important part of ensuring a high degree of confidence and certainty in the project constructability and the final cost estimate,” Ms Watson said. 

“The Tarraleah Scheme has given more than 85 years of faithful service. But it is reaching the end of its operational life and there is no ‘do nothing’ option for its future. 

“Our proposal is to fully redevelop the scheme, building a more efficient water transfer system and a new power station that can generate more energy. 

“Investing in the scheme’s future means more energy and flexible capacity to meet the forecast growth in demand, address the risks posed by ageing assets and increase revenue and value that can be returned to Tasmanians.” 

Ms Watson said that Tarraleah was one of two major hydropower construction projects proposed. The second is a long duration pumped storage project at Cethana. 

“The Australian Energy Market Operator (AEMO) confirmed that long duration storage is essential, with hydro and pumped hydro central to Australia’s grid reliability,” Ms Watson said. 

“In an energy future based increasingly on wind and solar, our proposed 750MW pumped hydro project at Cethana will help underpin future energy reliability.” 

Background and project status 

Hydro Tasmania is calling for requests for proposals to construct the proposed Tarraleah redevelopment from suitably qualified, interested parties. This is the first part of a staged procurement process and will provide more confidence in what it will take to construct the project and what it will cost to build. The project has not yet reached a Final Investment Decision. It will require environmental and planning approvals as well as approval by the Tasmanian Parliament. 

Ends.