Hydro Tasmania has expressed strong support for the Australian Energy Market Operator’s (AEMO) recently released Draft 2026 Integrated System Plan (ISP). The draft plan underscores the critical importance of long-duration storage as an essential element in Australia’s transition to a more sustainable energy future.
The ISP foresees profound changes in Australia’s energy future. They predict that by 2035, two-thirds of the remaining coal fleet will cease operations, with all coal resources projected to retire by 2049. This transition represents a tremendous opportunity for renewable energy, especially when combined with firming solutions such as long-duration storage.
Strategic Management of Water Levels
Hydro Tasmania’s ambitious Project Marinus aims to enhance the company’s ability to manage water levels in its dams strategically. This project, along with the North West Transmission Development, will enable Tasmania to play a pivotal role in stabilizing the electricity grid on the mainland.
Rachel Watson, CEO of Hydro Tasmania, pointed to the irreplaceable qualities of Tasmania’s deep hydro storages.
“Tasmania’s deep hydro storages are uniquely suited to help firm Australia’s grid through these lulls over days, weeks and seasons,” – Rachel Watson.
Alongside these energy-efficiency initiatives, Hydro Tasmania imports zero-emission excess low-cost solar and wind energy from the mainland. It helps to export electricity at mutually beneficial times for electricity markets and the Tasmanian economy. The Marinus Link interconnector will allow Tasmania to reach its full potential in supplying firming capacity. This improvement will have nationally beneficial effects by improving energy security in all parts of Australia.
Economic Benefits and Job Creation
The Draft ISP outlines how projects like the Marinus Link interconnector and the North West Transmission Development will not only support Tasmanian demand but deliver substantial economic benefits. Each of these developments are set to produce thousands of new jobs, attract billions in local investment and help grow local clusters of developing industries in the state.
Daniel Westerman, AEMO’s Chief Executive Officer, pointed to the years of stakeholder consultation that went into developing the ISP.
“Extensive stakeholder consultation and modelling of thousands of potential investment combinations has identified the least-cost option,” – Daniel Westerman.
Hydro Tasmania anticipates a significant increase in revenue potential returned as dividends to support further investments in clean energy infrastructure.
Future Energy Landscape
This ISP points to an extraordinary expansion of long-duration storage alternatives. It predicts a frankly incredible 12 gigawatts (GW) of pumped storage hydro power. This proposal would replace it with renewable energy backed by storage and gas capacity. It provides a link between us all to accomplish more with improved networks.
Rachel Watson echoed the key role of long-duration storage in keeping our grid reliable.
“The ISP had also identified that extended renewable lulls are a reality and harder to predict in duration and intensity,” – Rachel Watson.
She continued by saying the collaboration of all these resources is key to powering Australia’s future energy needs – sustainably.
