Hydro Tasmania and local renewables company TasRex have finalised key terms for an offtake agreement that will accelerate the development of a major renewable energy project for Tasmania.

Under the agreement, Hydro Tasmania will buy energy generated at a new $500 million solar farm, to be built by TasRex at Connorville Estates, near Cressy in the Northern Midlands.

At 288-megawatts, the solar farm will be capable of powering around 70,000 homes. When operating at full capacity, it will be Tasmania’s fourth largest generator after Gordon and Poatina hydropower stations, and the Tamar Valley Power Station.

Hydro Tasmania Acting CEO Erin van Maanen said the agreement demonstrated Hydro Tasmania’s support for new renewable development in Tasmania. 

“The deal gives TasRex the confidence to proceed with this major development and deliver an important new source of renewable energy to help power Tasmanian homes and businesses,” Ms van Maanen said.

TasRex CEO Bess Clark said they expected the solar farm to be fully operational in 2027.

“We are looking at staged development of the project, to bring new clean energy to market as soon as possible,” Ms Clark said.

“TasRex is a Tasmanian company and our team, including landowner Roderic O’Connor, has been working hard to realise this ambitious project. We are actively engaging with surrounding landowners and the local community.”

Ms van Maanen said variable renewable energy like wind and solar complement the island’s incredible hydropower resources.

“Wind and solar are the fastest, lowest cost way to deliver new energy supply. Hydropower can fill in the gaps when the sun doesn’t shine and the wind doesn’t blow.

“This is the best way to deliver a reliable energy system that meets the growing demand for energy and minimises costs to Tasmanian consumers.”