Hydro Tasmania has rebuilt Tasmania’s energy security as it awaits the recommendations of the Energy Security Taskforce.

The business welcomed the opportunity to contribute to the Public Accounts Committee’s consideration of complex issues. The PAC has tabled its report in the Tasmanian Parliament today.

The 2015/16 energy supply challenge was caused by a combination of unprecedented events, including the driest spring on record. Hydro Tasmania’s response was decisive, and ensured homes and businesses did not lose power.

The CEO of Hydro Tasmania, Steve Davy, said Hydro Tasmania is focused on a secure and strong future for Tasmania and the business.

“All major challenges carry an opportunity to learn and improve - including the events of 2015/16. Hydro Tasmania has learned, listened and responded to help give Tasmanians a secure and confident energy future,” Mr Davy said.

“The PAC received submissions from a wide range of stakeholders and considered this input in developing its report. We take note of the report and the views that have informed it and these will be part of our considerations moving forward,” He said.

Hydro Tasmania has rebuilt storages to secure levels, and the business is rebounding strongly by restoring profitability and reducing debt.

“Storages are now at about 39 per cent full, which is very secure for this time of year. We comfortably exceeded our target of at least 30 per cent at the end of June, despite a fairly dry autumn, and expect to comfortably exceed our next target of 40 per cent at the start of summer,” Mr Davy said.

“The energy supply challenge showed that inflows can be much lower than previously experienced, and a Basslink outage can be longer than previously understood. That’s why we’ve updated our underlying assumptions.

“It’s a mark of how securely and confidently Tasmania has recovered from the 2015/16 energy supply challenge that the Australian and Tasmanian governments are now investigating how to expand the state’s renewable energy output and make it the Battery of the Nation,” Mr Davy said.

As Australia’s largest generator of renewable energy, Hydro Tasmania has recently:

• Taken action to limit short-term power price increases for many Tasmanian businesses, by reducing wholesale prices by about 20 per cent.
• Been working with the Australian and Tasmanian Governments on options to expand Tasmania’s renewable energy capacity and become the Battery of the Nation - including getting the most out of existing assets, boosting interconnection and integration, and working with the proponents of new generation projects.
• Contributed nation-leading expertise to help address the major challenges confronting the National Energy Market – which include rising gas costs, the closure of existing generators, integrating more variable generation, and reliably delivering energy as Australia transitions to a low-carbon economy.
• Worked with CSIRO, UTAS and the BoM to better understand the impacts of climate change on hydrological variability in Tasmania.

Ends.

Released for Hydro Tasmania by Rowan Dix, (03) 62305330 / 0409 722 359 / media@hydro.com.au.