Hydro Tasmania has launched a renewable energy offtake tender, inviting proposals for new wind and solar projects to boost power supply to the Tasmanian grid.
The company intends to sign a commercial offtake agreement with projects capable of delivering up to 1,500GWh per year, with operations targeted to begin within the next five to six years.
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This open tender forms a part of Hydro Tasmania’s strategy to catalyse new renewable energy developments that can operate alongside hydropower to address the Australian state’s rising energy needs.
By integrating wind and solar with hydro resources, the company aims to enhance both the reliability and capacity of the state’s electricity system.
Hydro Tasmania’s commercial executive general manager Vedran Kovac highlighted that the Australian Energy Market Operator (AEMO) forecasts Tasmanian energy demand will increase from 2030.
Kovac said: “Investment in new solar and wind projects will enable existing and future energy-intensive industries to expand in Tasmania.
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By GlobalData“The best way to meet future demand is a combination of wind, solar and hydropower.”
He also noted that clarity around the Marinus Link project has encouraged developers, with offtake agreements now being a critical next step.
Kovac added: “Signing an offtake agreement with a credit-worthy party like Hydro Tasmania is an important step for wind and solar developers to secure attractive financing terms to progress their projects.
“It has to be commercial and stack up for Tasmanians, but working together, we can bring new energy online for the state.”
Earlier in 2024, Hydro Tasmania agreed to purchase energy from a proposed 288MW solar farm in the Northern Midlands region of Tasmania, which will become the state’s fourth largest power generator when fully operational.
