Liberals pledge to 'power up Tasmania's future' through hydro cap abolishment

Premier Jeremy Rockliff said under the Hydro-Electric Corporation Act 1995, the Hydro is prevented from building projects greater than 40 megawatts in capacity without going through a "cumbersome" Parliamentary process.

"This is an antiquated piece of legislation that has failed to keep pace with both advancements in wind and solar, and the demands of Tasmania's strong economy," Mr Rockliff said.

If re-elected, the Liberals will introduce new legislation that lifts the cap on Hydro's new energy generation within the first 100 days of office.

Tasmanian Minerals, Energy and Manufacturing Council (TMEC) chief executive Ray Mostogl welcomed the pledge.

"What we've seen probably over the last 10 to 15 years is adapting what were some great foundational principles," Mr Mostogl said.

"We certainly see that the market has shifted and the value of renewable energy has changed in the world.

"Tasmania has obviously got that in abundant supply, we also have an entity that's still in public ownership and unlike the rest of the country, you're just not able to pull these levers.

He said the move "puts Tasmania in the box seat" for the next generation of energy.

"But also the employment that comes from it and development that can be spread across the state."

Energy Minister Nick Duigan said the changes would free-up the Hydro to build and partner in the "new energy generation our growing state needs."

"We need current, fit for purpose legislation that suits the Tasmania of today and the Tasmania going forward," Mr Duigan said.

Labor spokesperson for energy Dean Winter said Tasmania had entered an "energy crisis" under the Liberal government.

"There hasn't been any new energy generation come online for close to 1,200 days," Mr Winter said.

"And Hydro has not commissioned a new windfarm it owns in Tasmania since 2013 - when Labor was in office."

"We need to make sure we get hydro doing what it promised Tasmanians 100 years ago would do and that's to provide plentiful, affordable, reliable electricity to Tasmanian homes and businesses."