Tasmania is accelerating its role in Australia’s energy transition with significant renewable energy developments emerging in 2026.
At the centre of the state’s strategy is the Cethana Pumped Hydro Energy Storage Project, a major long-duration storage proposal by Hydro Tasmania. The 750 megawatt (MW facility), as part of the broader Battery of the Nation vision, has been resubmitted for federal assessment under Australia’s Environment Protection and Biodiversity Conservation (EPBC) Act following prior design changes.
Positioned near Lake Cethana in northwest Tasmania, the project aims to provide up to 20 hours of energy storage to firm variable renewable generation and strengthen grid reliability as coal-fired power exits the National Electricity Market. The referral is currently open for public comment, marking a key step in its approval pathway.
Pumped hydro energy storage is referred to as the foundation for integrating large amounts of wind and solar generation. Hydro Tasmania’s proposal joins a wave of pumped hydro initiatives across Australia, signalling renewed investment interest in long-duration storage solutions.
In a symbolic milestone for Tasmania’s energy landscape, Hydro Tasmania has completed the demolition of the 110-metre smoke stack at the former Bell Bay Power Station in northern Tasmania. The controlled explosion brought down one of the state’s last oil-fired power station structures, clearing the way for repurposing the site for future clean energy and industrial uses, including potential green hydrogen production.
These developments unfold against a backdrop of ongoing infrastructure build-out in Tasmania, including proposed Renewable Energy Zones that support co-located wind, solar and storage assets. They also dovetail with broader grid integration plans such as the Marinus Link interconnector to Victoria, which together aim to position Tasmania as a key renewable energy exporter.