Hydro Tasmania is making changes to the operating regime of the Tamar Valley Power Station in preparation for the decommissioning and sale of the combined cycle gas turbine.

The Tamar Valley Power Station and associated assets were transferred from Aurora Energy to Hydro Tasmania on 1 June 2013. This included a significant amount of debt.

Since that time, Hydro Tasmania has optimised the power station within its broader generation portfolio. This optimisation has included not using gas-fired generation when there is ample hydro generation or when imports from Victoria are cheaper.

Throughout this process, the workers at the Tamar Valley Power Station have worked hard to support the optimised running of the station in our portfolio.

The combined cycle gas turbine (CCGT) is one of five gas turbines at the power station, and it is designed to operate as baseload plant. Due to changes in the market since the power station was designed and commissioned, it is not cost-effective to use the CCGT for baseload energy generation.

Since the decision was made to purchase and build the plant in 2008, market conditions  have changed significantly. Hydro Tasmania has undertaken extensive modelling and confirmed that the CCGT is not required for energy security. 

The Tasmanian Government has approved the decommissioning and sale of the CCGT. Four other (open cycle) gas turbines at the power station will continue to be operated to provide peak supply. The sale will allow Hydro Tasmania to reduce its debt levels.

The business has advised workers at the power station of the changes and their implications. Employees are being appropriately supported and relevant unions have been advised.  We are working to maximise redeployment opportunities within Hydro Tasmania to minimise job losses.

Ends.

Released by Samantha Meyer, (03) 6230 5746