Energy in Tasmania

Tasmania, as an advanced economy with a globally high standard of living, uses a great deal of energy.

Distinctive features of energy use in Tasmania include the high fraction of hydroelectricity usage, the absence of coal-fired electrical generation, relatively light usage of natural gas, particularly for domestic use, and a wide use of domestic wood-burning stoves.

[1] As of June 2022, Hydro Tasmania, the government-owned enterprise that now operates Tasmania's hydroelectric generators, is planning to spend roughly $120 million, including a $65 million federal government grant, on planning for an upgrade to the Tarraleah Power Station,[2] as part of the "Battery of the Nation" concept (see below).

[3] There are several proposals for additional onshore and offshore wind farm projects for Tasmania,[4][5] in many cases contingent on the construction of the Marinus Link interconnector.

Solar power is a relatively small contributor to Tasmania's electricity production, contributing only 2.06% of total generation in 2021.

Rooftop solar power is less economically attractive in Tasmania than other states, due to lower solar insolation, lower up-front cost reductions than through the Small-scale Renewable Energy Scheme, the lack of additional state government subsidies comparable to Victoria's Solar Homes program[7] and higher installation costs due to freight and a more rigorous quality inspection scheme than other states.

[8] The Tasmanian domestic transmission and distribution grid is operated by TasNetworks, a state-owned enterprise formed in 2014.

[12] Hydro Tasmania, a Tasmanian government-owned enterprise that owns and operates most of Tasmania's electricity generation, has proposed the large-scale export of dispatchable power from renewable sources to mainland Australia in a concept called "Battery of the Nation".

[13] Hydroelectricity, compared to solar and wind power, can be available at any time of day or night and independent of short-term weather conditions.

The Battery Of The Nation concept seeks to determine how Tasmania's hydropower and wind capacity can be configured to provide dispatchable power to mainland Australia.

The federal government has provided several substantial grants totalling more than A$120 million for planning for pumped storage, the Marinus Link interconnector, and funding for upgrades to Tarraleah Power Station to increase its dispatchable capacity.

[14][15] TasNetworks, the monopoly transmission provider in Tasmania owned by the state government, has conducted a feasibility study for Marinus Link, the interstate connector enabling the project, and has concluded that the project is feasible, will provide a commercial rate of return for its operators, and that overall benefits will exceed the costs.

[22] The first coal mine in Tasmania opened in 1834, near the Saltwater River on the Tasman Peninsula, using convict labour.