One of Tasmania’s oldest power stations could be redeveloped creating hundreds of jobs.
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A $5 million feasibility study will assess whether the 80-year-old Tarraleah power station will be upgraded or replaced.
The study is being jointly funded by the Australian Renewable Energy Agency and Hydro Tasmania.
Hydro chief executive Steve Davy said the Tarraleah power station was due for replacement and the study would asses the business case for the rdevelopment.
“I would hope that at the end of the study we can decide to proceed with the project,” Mr Davy said.
“A new power station could double the scheme’s capacity and create hundreds of construction and engineering jobs.”
Energy Minister Guy Barnett said a redevelopment of Tarraleah could cost $500 million and take three years.
“Built in the 1930s, the site is one of Tasmania’s oldest hydro schemes and Hydro Tasmania is currently assessing a number of options to future-proof the site,” Mr Barnett said.
“The power station is a critical part of the state’s hydro power system and we need to ensure it meets the future needs of the electricity market.”
Mr Barnett said a redevelopment would more than double the scheme’s capacity from 104 megawatts to 220 megawatts.
“This takes our heritage hydro assets and propels them into the next generation which is in line with the Battery of the Nation – pumped hydro development opportunities for our state.,” he said.
The feasibility work is expected to take 18 months.
Mr Barnett said the redevelopment of Tarraleah further supported the need for increased interconnection with the mainland.
“The Hodgman Liberal Government is committed to its target of achieving the lowest regulated electricity prices in the country by 2022, and to make Tasmanian energy self-sufficient in the same timeframe,” he said.
“We know that by investing in projects like Tarraleah, we can achieve our ambitious targets and cement our status as the renewable energy powerhouse of the nation.
Hydro says the project would also improve other parts of the Tarraleah scheme.
It would contribute to the overall boost of 2,500 MW planned for Tasmania under Battery of the Nation.