Hydropower feasibility study supported by ARENA

The Australian Renewable Energy Agency (ARENA) has announced up to $2.5 million in funding for Hydro Tasmania to complete final feasibility analysis into the proposed redevelopment of the Tarraleah hydropower scheme.

Based in Tasmania’s Central Highlands, the Tarraleah scheme currently generates around 634 GWh per year of largely base load energy, providing around 6.5% of Hydro Tasmania’s annual power generation. The proposed redevelopment would more than double the scheme’s capacity from 104 to 220 MW with 20 hours of storage in one cycle.

A pre-feasibility study completed earlier this year identified and assessed options for the future of the Tarraleah scheme. Funded by ARENA’s initial commitment to the Battery of the Nation initiative, the pre-feasibility study found that an option to expand the capacity of the Tarraleah scheme and increase its flexibility was potentially feasible, concluding that capacity-optimised redevelopment would be the most viable option to support demand on an energy market that has a variable level of renewable energy.

The full-scale feasibility analysis, which is expected to cost $5 million, will enable Hydro Tasmania to determine “the best options in terms of cost, market value and system flexibility”, said ARENA CEO Ivor Frischknecht.

“Tarraleah can play an integral part in Tasmania’s Battery of the Nation initiative, setting up a blueprint for increasing the state’s renewable resources to support the future NEM.”

Hydro Tasmania CEO Steve Davy said while pumped hydro and wind power attract most of the attention, getting more electricity from existing hydropower assets would also be crucial. He said, “This upgrade will also transform Tarraleah into Tasmania’s first truly 21st-century hydropower station — adding stability and flexibility to Australia’s future clean energy market.”

If developed, the project would create hundreds of jobs across the Derwent Valley and Tasmania.

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