The council is calling for parties with suitable experience and expertise who are interested in redeveloping the site to re-establish a small-scale hydroelectric scheme to come forward.

The Duck Reach station was decommissioned in 1955 after 60 years of supplying power to Launceston.

Launceston mayor Albert van Zetten said the council had been working on the project for a significant time.

"The late Jeremy Ball actually had the initiative to want to do something with the Duck Reach Power Station, so we've been working through a process and now we're ready with expressions of interest," he said.

"We've had people say they are keen to want to do something with this, so now's the chance for them to come forward."

Alderman van Zetten said the Duck Reach site was historically significant for Launceston, and that it would be "fantastic" to see it operating again.

"This was the first municipal-owned hydroelectric station in the southern hemisphere, and was severely damaged in the 1929 floods," he said.

"There are two important historical touchstones right there; but of course there were other significant achievements which came out of Duck Reach, including Launceston being the first electrically lit city in the southern hemisphere."

The project's cost is expected to be ratepayer neutral.

Expressions of interest close on August 7. Interested parties should contact the Launceston City Council on 6323 3000.