Hydro Tasmania has marked a significant milestone in the proposed redevelopment of the historic Tarraleah Power Station, announcing the first phase of its construction tender as part of plans to modernise one of the state’s oldest hydropower assets.

Tasmania Minister for Energy and Renewables, Nick Duigan, said the release of a Request for Proposal (RFP) signals a critical step in securing the future of the scheme and strengthening the state’s renewable generation capacity.

The RFP seeks engineering, procurement and construction contractors to deliver the next stage of the redevelopment, with the process designed to generate market-informed cost estimates ahead of a Final Investment Decision.

According to the Minister, the tender phase is not only about technical delivery but also about industry participation. Hydro Tasmania will work alongside Industry Capability Network Tasmania to ensure local businesses have opportunities to contribute to the project, from major contractors to smaller suppliers.

Tarraleah has supplied renewable energy to Tasmania for more than 80 years. However, the ageing infrastructure is approaching the end of its operational life, prompting the state-owned generator to assess options for a modern, fit-for-purpose redevelopment that can support future demand and system reliability.

The current procurement phase is intended to provide greater certainty around constructability and overall project cost, strengthening the business case before endorsement by the Tasmanian Government and Parliament.

The milestone coincides with Hydro Tasmania’s participation at the International Hydropower Association’s forum in Canberra, where the Securing a Resilient Energy Future for Australia report was launched. The document outlines recommendations to support hydropower development globally, reinforcing the technology’s role in firming renewable-heavy grids.

Hydropower has underpinned Tasmania’s energy system for more than a century and remains central to its clean energy strategy. As the state positions itself to support growing electrification and increased interconnection with the mainland, projects such as the Tarraleah redevelopment are expected to play a critical role in maintaining energy security while advancing Australia’s broader decarbonisation objectives.

Read the full media release from Tasmania Minister for Energy and Renewables