Skip navigation

IRIS Tasmania  >  Infrastructure  >  Energy  >  Supply  >  Electricity

Electricity Supply

Tools:

Maps – Energy

Tasmania has historically generated most of its electricity from hydro-electric power stations. The amount of hydro-electricity that can be generated from average levels of inflows each year is around 9,000 GWh. However, Tasmanian requirements for electrical energy has increased over recent years to over 11,000 GWh a year. The shortfall has had to be made up from mainly gas-fired electricity, and more recently, Basslink.

Persistent low inflows have necessitated greater reliance on non-hydro sources. This reduction of inflows had gradually reduced water storage levels in the dams. At the end of May 2008 they stood at 18%, a record low for that time of year. Hydro power stations provide 2,278 MW of the total 2,763 MW Tasmanian generator capacity presently connected to the transmission system, meaning that hydro generation constitutes 82% of the currently installed capacity in Tasmania. The rest is predominantly gas generation and wind. Basslink provides a further 600 MW of supply capacity if and when this is needed, although this is currently constrained by 470 MW for reasons of system security.

The reliance on hydro generation has been reduced by the conversion of Bell Bay Power Station to natural gas, the installation of three gas turbine generators and the completion of Basslink.

Investment in Tasmanian electricity infrastructure continues, with significant investments continuing to be made to ensure the continuity of electricity supply to Tasmania.

Electricity generation and network sector participants

Participant Role / function
Hydro Tasmania Electricity generation from wind and hydro
Bell Bay Power P/L Electricity generation from gas
Transend Networks P/L Electricity transmission and system control
Aurora Energy P/L Electricity distribution and retailing
Basslink P/L Network interconnector
Babcock & Brown Power Electricity generation

Tasmania entered the National Electricity Market (NEM) in May 2005, allowing electricity from Hydro Tasmania and other local generators to be exported across Basslink to Victoria during high priced peak demand periods, while still meeting the needs of electricity customers in Tasmania.

Participation in the NEM and Basslink bring significant changes to the Tasmanian electricity supply industry.

The NEM will also enable low priced electricity to be imported from Victoria during off-eak periods, allowing Hydro Tasmania to reduce generation and conserve its water resources for use during later peak demand periods.

Within the NEM Tasmania operates as a single region with National Grid Australia Pty Ltd, the owner / operators of the sub-sea interconnector (Basslink) operating as the Market Network Service Provider (MNSP). Basslink can provide up to 600 MW of hydro-electricity to mainland Australia and over 300 MW of electricity to mainland  Australia and up to 470 MW of electricity into Tasmania.

Under this system, Tasmanian generators will be able to enter into contracts with mainland energy customers and compete with mainland generators, who may also enter into contracts to supply Tasmanian based customers.

The transmission network owner and operator in Tasmania is Transend. The company owns 2,342 route kilometres and 3,516 circuit kilometres of transmission lines in Tasmania.

Transend invested $71 million in capital investment for 2006-07, much of it on the transmission network.

Retail contestability

Retail contestability, or competition, for electricity customers in Tasmania commenced in July 2006 and is being phased in over over the four years between 2006 and 2010 based on the amount of electricity used.

Contestable electricity customers in Tasmania will be given the opportunity to choose suppliers who offer the best price and service in the same way that they can now purchase telephone services from a number of suppliers. Large consumers of electricity of over 4 GW per year are currently contestable.

Timetable

Introduction of contestability Electricity consumption Annual electricity bill likely to exceed Indicative customer type
1 July 2006 20 GWh/yr $1,000,000+ Mineral processors
1 July 2007 4 GWh/yr $250,000+ Food processing plant and multi-storey office complexes
1 July 2008 0.75 GW/yr $75,000+ Supermarket, engineering workshops
1 July 2009 0.15 GWh/yr $16,000+ Fast food restaurant, service station and large offices
*1 July 2010 < 0.15 GWh/yr

 

 Small business and households *

*Subject to an assessment of the associated costs and benefits

Source: Department of Treasury and Finance, Treasury Information Paper  Tasmania?s Entry to the National Electricity Market.

This timetable will ensure a smooth transition to a competitive electricity market in Tasmania.

 

Wind power

Located in the path of prevailing westerly winds, Tasmania has world-class resources for the generation of wind power.

Hydro Tasmania's joint venture partnership with China Light and Power Group continues to grow through the development of wind generation technologies and opportunities. The expanded Huxley Hill Wind Farm on King Island in Bass Strait provides a total installed capacity of about 2.5 MW of wind generation.

In addition to the established Woolnorth Bluff Point Wind Farm, the completion of the Woolnorth Studland Bay Wind Farm increased wind output, bringing the total generating capacity of Tasmania's wind farms to 140 MW.

Another well advanced development to harness Tasmania's wind energy resources is the Musselroe wind farm on the north-east coast of the State.

Other

There are a number of smaller generators using wind, hydro and methane gas. Natural gas is the fastest growing energy source in Australia and can provide effective competition to electricity.

Tasmania has begun to provide methane gas produced electricity into the National Electricity Grid. Gas collection stations and associated electricity plants are installed and in production at three landfill sites: Launceston, Hobart and Glenorchy.