One of Tasmania’s oldest hydropower schemes is set for a multi-billion-dollar transformation after Hydro Tasmania kicked off the first stage of its construction tender.
The state-owned energy company is now seeking proposals from contractors to rebuild the 85-year-old Tarraleah scheme in the Central Highlands.
The project would replace the ageing 90MW power station with a new 190MW facility capable of generating more energy from the same water.
A new water transfer system would also be built as part of the redevelopment.
The Tarraleah scheme was commissioned in the 1930s and currently produces about 630 gigawatt hours annually – roughly 6.5% of Hydro Tasmania’s total output.
Hydro Tasmania chief executive Rachel Watson said the ageing infrastructure left few options.
“The Tarraleah scheme has given more than 85 years of faithful service. But it is reaching the end of its operational life and there is no ‘do nothing’ option for its future,” she said.
The tender process will help firm up construction costs ahead of a final investment decision.
The project still requires environmental and planning approvals, as well as sign-off from parliament.
A rebuilt Tarraleah would be more flexible than the current baseload-focused operation, Watson said.
It would be able to ramp up quickly when wind and solar generation drops.
Watson said the Australian Energy Market Operator had confirmed long-duration storage was essential for grid reliability as renewable energy expanded.
Hydro Tasmania is also progressing a separate 750MW pumped hydro project at Cethana.
The company bought back the historic Tarraleah Village in 2023 for $11.2 million to house construction workers.
The village was built in the 1930s to accommodate the original workforce and later sold off as a tourism venture about 20 years ago.
