Bioenergy Australia chief executive Shahana McKenzie said the plan focused too narrowly on renewable electricity and neglected other possible renewables to lessen fossil fuel dependency.

"Tasmania's ambition to achieve 200 per cent renewables by 2040 and become world-leading provider of clean, reliable energy is commendable, and it's position as the leading state for renewable energy shows strong leadership and commitment to growing this sector," she said.

"But with electricity at just 40 per cent of Tasmania's total energy usage, currently there's no strong plan for the 60 per cent usage predominantly from fossil fuels across the transport sector, such as petrol and diesel, and for residential and industrial natural gas.

"Tasmania must address these fuel sources to deliver on its ambition."

Ms McKenzie suggested biomethane as a potential alternative for natural gas.

She said Tasmania's roots in agricultural production industries meant utilising biomethane as an energy source would be a cost-effective alternative to shifting those industries to electricity-based energy.

"So there's an economic as well as practical argument to utilise existing gas infrastructure to green gas, providing the Tasmanian community with a choice of energy that will ultimately be cheaper for them than if existing gas users had to transition to electricity to de-carbonise," Ms McKenzie said.

Tas Gas chief executive Cameron Evans said "the development of a biogas industry has the potential to be a significant contributor to the reduction of carbon emissions in Tasmania."

"Tas Gas would welcome government investment and support in the development of a biogas industry in Tasmania in the same way it has supported the development of renewable electricity and the emerging biomass industry as a waste-to-energy option," he said.

Energy Minister Guy Barnett said the government is "currently considering options to expand the domestic processing and bioenergy sectors to increase bioenergy initiatives in Tasmania."