TASMANIAN RENEWABLE ENERGY ACTION - Department of State Growth
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TASMANIAN
RENEWABLE
ENERGY ACTION
PLAN
Department of State Growth
Image courtesy Hydro Tasmania
Contents
TASMANIAN RENEWABLE
ENERGY ACTION PLAN
DECEMBER 2020
Minister’s foreword
1 Tasmania’s renewable
energy future – Why
we need a Renewable
Energy Action Plan 3 What has been
achieved so far
Page 3 Page 10
2 Vision and priorities
Page 6 4 Our Tasmanian
Renewable Energy
Action Plan – Actions
Page 15
5 How
Making it happen –
we will deliver
on our Renewable
Energy Action Plan
Page 52
Minister’s
foreword
Tasmania is the renewable energy We have legislated our target to double our
powerhouse of Australia. Our installed renewable generation capacity with
a target of 200 per cent of our current needs
renewable energy resources and
by 2040. Our Tasmanian Renewable Energy
expertise in developing renewable Target, or ‘TRET’, is a world leading goal.
energy is a 21st century competitive Far beyond our sister Australian states and
advantage. Tasmania is blessed with territories, our goal is unmatched globally.
natural assets, we have world leading The opportunity to double our already
water and wind resources. By seizing significant renewable energy production,
Tasmania’s immense potential, injecting billions into our economy and
renewable energy can grow our creating thousands of local jobs, improving
economy, attract investment, create energy security and placing downward
jobs and support Australia’s transition pressure on electricity prices, will largely
be realised through our nationally
to renewable supply.
significant Project Marinus and Battery
As a result of COVID-19, there are of the Nation projects.
unprecedented challenges facing Australian
Our $50 million renewable hydrogen industry
households and industries. Throughout 2020,
development support package is the largest
the Tasmanian Government took decisive
out of all Australian states and territories.
action to safeguard our energy supply as the
This will kick-start the renewable hydrogen
pandemic unfolded. As we look to the future,
industry in Tasmania, creating hundreds of
our renewable energy developments will form
additional jobs and injecting further billions
an important part of rebuilding
into our economy.
our economy.
Renewable hydrogen has the potential to be
Tasmania is Australia’s leading renewable
Tassie’s superpower and, underpinned by our
energy state. We have reached our goal
nation leading renewable energy generation
to be self-sufficient in renewables, two
credentials, is a competitive advantage we are
years ahead of our 2022 target. We are
seeking to maximise to create a new growth
the first state in Australia, and one of the
sector for the state.
first jurisdictions in the world, with 100
per cent renewable energy generation. This Tasmania aspires to lead the way as a
confirms our status as a world leader in clean region for new and expanded industrial
energy generation. developments on-shore – where
manufacturing, commercial and industrial
Complementary to our renewable energy
operations can directly access our low cost,
goals is a firm commitment to achieving the
reliable and clean electricity resources.
lowest regulated electricity prices in Australia
for residential and small business customers In fact, we will continue our strategy
by 2022. We are well on track to achieve this of utilising renewable energy as a key
target, but we can and will do more. economic driver that benefits all Tasmanians
through job creation, investment and
economic development.
1 THE TASMANIAN RENEWABLE ENERGY ACTION PLAN
Tasmanians can be proud that our This version of the Tasmanian Renewable
renewable energy generation is at the Energy Action Plan articulates our vision
heart of Tasmania’s nation leading climate and a suite of actions to develop renewable
action plans, helping to reduce our emissions energy generation in Tasmania over the
and those of the nation. coming twenty years.
We have achieved our target of net zero Our plan will define the pathway to
emissions four years in a row and we still securing a renewable energy future, creating
have the lowest per capita emissions of all thousands of local jobs, strengthening our
states and territories. economy and ensuring energy remains
affordable and accessible.
Proudly, we are also one of the lowest net
emitters of carbon dioxide on the planet, This is the beginning of a new era of
having reduced emissions by 95 per cent from renewable energy expansion for Tasmania
1990 levels. – one to rival the immense achievements
of our past. This will be achieved in context
Renewable energy is consistent with our
of the deep challenges facing the Australian
pure, fresh and natural Tasmanian ‘brand’
energy sector as it transitions to one based
which is best represented by our low cost,
on renewable energy generation sources.
reliable, clean energy.
The Tasmanian Renewable Energy Action
It cannot be ignored that we produce nearly
Plan will establish the platform to transform
a quarter of Australia’s renewable energy,
Tasmania from being Australia’s renewable
while Tasmanians consume just two per cent
energy powerhouse into a world leading
of the nation’s energy.
provider of clean, reliable and affordable energy.
We remain committed to continuing to
Importantly, the Tasmanian Renewable
promote and develop Tasmania’s renewable
Energy Action Plan will be a dynamic
energy brand both nationally and globally,
and living document that will be regularly
ensuring we become an example for the rest
reviewed to ensure relevancy to the broad
of the world to follow.
transition facing the Australian Energy sector
Importantly, Tasmanians come first and are as well as changing needs of our community
central to our goal to deliver Tasmanian
We welcome the opportunity to share our
residents and small businesses the lowest
vision, and I encourage you to engage with
possible regulated electricity prices. As
the exciting opportunities and initiatives that
the energy market undergoes rapid
our Tasmanian Renewable Energy Action
transformation and technological change, we
Plan presents.
will ensure that Tasmanian customers are
empowered to manage their energy needs
and take advantage of new technology and
market offerings. Hon Guy Barnett MP
Minister for Energy
2
1. Tasmania’s Renewable
Energy Future
Why we need a Renewable
Energy Action Plan
Tasmania has some of the best Tasmania’s renewable energy sector is
renewable energy resources in undergoing unprecedented growth and
expansion. Nationally significant projects
the world. Energy systems in
such as Project Marinus and Battery of the
Australia and globally are currently Nation are being actively progressed and
undergoing a rapid transition from there has been major expansion in wind
fossil fuels to renewables-based farm investment. Tasmania is also pursuing
energy generation. Nationally, all the opportunity to become a leader in the
Australian states and territories have emerging global renewable hydrogen industry.
set ambitious renewable energy or The Government’s Tasmanian Renewable
Hydrogen Action Plan sets out a pathway
emissions reduction targets to drive
to ensure our growing renewable energy
investment in renewables and move resources can underpin the quest to become
to clean energy. This shift in energy a leader in large-scale renewable hydrogen
production represents a significant production. There are also opportunities to
economic opportunity for Tasmania. develop the state’s emerging biomass and
Tasmania is Australia’s only state, and one of ocean energy sectors.
the few locations globally, that has achieved To drive investment and expansion of the
100 per cent self-sufficiency in renewable renewable energy sector, the Government
energy generation. This means Tasmania now has recently legislated the Tasmanian
has the installed capacity to meet our annual Renewable Energy Target (TRET). The
electricity needs from on-island renewable TRET will increase the state’s renewable
energy generation. Tasmania is now energy output equivalent to 200 per cent of
generating, on average, over 10,700 gigawatt renewable electricity generation levels (set
hours (GWh) per year. at a baseline of 10,500 GWh). This means
This status, backed by our long history that by 2040, Tasmania will produce twice
of investment in renewable electricity as much renewable electricity as the 10,500
generation, gives Tasmania a significant GWh baseline.
competitive advantage as an investment As part of this journey, the Government has
destination for major renewable energy also set an interim target of 15,750 GWh of
projects, nationally and globally. Tasmania is electricity generation from renewable energy
blessed with an abundance of competitively sources by 2030 (a target of 150 per cent).
priced, reliable and clean renewable energy The TRET goes far beyond other Australian
which is underpinned by our world class wind states and is unmatched globally.
and water resources.
3 THE TASMANIAN RENEWABLE ENERGY ACTION PLAN
In early 2021, the Government will publish
for consultation its Renewable Energy
Coordination Framework (the Framework) With Tasmania’s
renewable energy sector
which sets out the actions to support the
renewable energy growth required to
achieve our TRET. Central to the Framework
is ensuring that the benefits from renewable growing as never before,
energy projects, such as jobs and investment,
are maximised for local communities. now is the time to set
It will also ensure that local communities
are listened to, and fully consulted when
a clear pathway for
large scale renewable energy developments
are proposed.
Tasmania.
With Tasmania’s renewable energy sector
growing as never before, now is the time to
set a clear pathway for Tasmania.
The Tasmanian Renewable Energy Action
Plan (TREAP) details the Government’s
vision for our renewable energy future. It
sets clear targets and actions designed to
build on Tasmania’s natural competitive
advantages and attract large scale investment
to significantly grow and expand Tasmania’s
renewable energy sector into the future.
Image courtesy Hydro Tasmania
Tasmania is in a unique position
as a leader in renewable energy
given our history of development
and our world class energy resource.
5 Tasmania
Image courtesy Hydro THE TASMANIAN RENEWABLE ENERGY ACTION PLAN
2. Vision and Priorities
The Tasmanian Government has identified Tasmania is in a unique position as a
renewable energy as a key economic leader in renewable energy given our
driver for the future. The Tasmanian history of development and our world
Renewable Energy Action Plan (TREAP)
class energy resources. In Tasmania,
will be key to the Government’s vision of
utilising renewable energy to benefit all we have the potential to build a truly
Tasmanians through job creation, helping sustainable, prosperous, 21st century
our environment and driving investment and economy based on affordable reliable,
economic growth. clean energy that will create jobs and
Our TREAP will deliver for Tasmanians in also play a major role in reducing
three key priority areas: carbon emissions across Australia.
Transforming Tasmania into a
global renewable energy powerhouse
Making energy work
for the Tasmanian community
Growing the economy
and providing jobs
6
Stakeholder &
Community Consultation
MAY 2020 CONSULTATION
In May 2020, the Government published its
Draft TREAP and a consultation period was
held from 22 May 2020 to 11 September
2020. Thirty-three consultation responses
were received from stakeholders, ranging
from Government-owned energy businesses,
wind farm operators, academic and
research institutions, business organisations,
community groups, and members of
the public. The key message from the
consultation was overwhelming support from
respondents for the expansion and growth of
Tasmania’s renewable energy sector. Copies
of submissions can be found can be found
under Consultation at:
www.renewablestasmania.tas.gov.au
SNAPSHOT OF KEY ISSUES RAISED
DURING CONSULTATION
Tasmanian Renewable Energy Target
(TRET) Overwhelming support for the
200 per cent Renewable Energy Target.
Development of a renewable
hydrogen industry
Strong support for a renewable hydrogen
industry. The potential for hydrogen to
In these challenging times with the decarbonise major industries and transport
impacts of the COVID-19 crisis were identified as key opportunities.
continuing, it is more important
Engaging with local communities
than ever to build resilience into The need to undertake a best practice
our economy. approach to engaging with communities when
As part of the wider post COVID-19 large scale renewable energy developments
economic recovery strategy, the are planned to secure community support
Tasmanian Government has committed was identified as a high priority.
to focus on the role that the renewable
energy sector can play in boosting Project Marinus
jobs and investment. The TREAP will Project Marinus was identified by a number
be key to this goal and describes a of stakeholders as being central to Tasmania
comprehensive strategy to drive and achieving its renewable energy objectives
support the long-term growth of our and, in particular, the TRET. Ensuring that
renewable energy sector. Tasmanians only pay an appropriate and
equitable cost for Project Marinus was
identified as a key issue.
7 THE TASMANIAN RENEWABLE ENERGY ACTION PLANEstablish Renewables Tasmania SNAPSHOT OF KEY ISSUES
The importance of Renewables Tasmania’s RAISED DURING THE CHILDREN’S
role in renewable energy development AND YOUNG PEOPLE’S TREAP
was recognised with particularly strong CONSULTATION
support for its establishment from the
Overwhelming support for the 200 per
University of Tasmania (UTAS) and
cent target – respondents saw the TRET
Cradle Coast Authority.
as an important mechanism to ensure the
Development of Bioenergy opportunities Government is accountable and shows
A number of stakeholders identified leadership in achieving it.
opportunities for bioenergy including the
High level of support for turning waste
production of biofuels, biogas and converting
streams into bioenergy and producing
waste streams into bioenergy.
biofuels were identified as key opportunities.
Skills and Training
High level of support for major renewable
Ensuring that Tasmanian workers have access
energy projects (although some respondents
to the skills and training that an expanding
raised concerns about the cost implications
renewable energy sector will require, was
and the affordability of electricity prices).
identified as an action of key importance.
Overwhelming support for
CHILDREN’S AND YOUNG electric vehicles.
PEOPLE’S CONSULTATION
In addition to the formal consultation on Overwhelming support for renewable energy
as part of the Tasmanian ‘Brand’.
the TREAP, the Department of State
Growth partnered with the Commissioner
for Children and Young People (CCYP),
to undertake a dedicated consultation with Listening to our
young people on the TREAP and produced
a young people and child friendly version of
stakeholders –
the TREAP. The children’s and young people’s Consultation response
consultation on the TREAP commenced and actions
on 22 September 2020 and closed on 22
The Government is highly appreciative of the
October 2020.
number of responses it has received from
This is the first time that the Government both the May 2020 consultation and from
has specifically sought to directly engage the Children and Young People’s consultation
with, and seek the views of, young people in on the draft TREAP. The submissions and
relation to a major policy initiative. other discussions have been extremely
Representatives from the Department also helpful in assisting the Government refine
attended the Commissioner’s State-wide and finalise the TREAP. The new ideas
Ambassadors Event on 25 September 2020 and recommendations raised during the
and received a number of submissions from consultation have played a key role in
the young Ambassadors on the day. The developing a number of new Actions which
Department received 82 submissions from have been added to the final Plan. These new
young people and children, attesting to the Actions are identified as NEW ACTIONS in
importance they place on issues, such as the Plan. More details on these Actions are
climate change and renewable energy. provided in Section 4.
89
3. What has been
achieved so far
KEY ACHIEVEMENTS AND Legislation of the world-leading
HIGHLIGHTS SINCE THE MAY 2020 Tasmanian Renewable Energy Target
PUBLICATION OF THE DRAFT TREAP (TRET) of 200 per cent of our 2022
baseline of 10,500 GWh of renewable
Achieving 100 per cent self-sufficiency energy generation by 2040, has been
in renewable energy generation passed by the Tasmanian Parliament
before 2022 Legislation to formalise the world leading
One of the Tasmanian Government’s key TRET passed in both Houses on 18
election commitments in 2018 was that November 2020. The legislation will establish
Tasmania would become 100 per cent self- the TRET and an interim renewable energy
sufficient in renewable energy by 2022. target. Legislating the TRET will provide
confidence for investment in new renewable
On 27 November 2020 the Government
energy projects, ranging from distributed
announced that Tasmania has met its target
energy resources (generation units that are
well ahead of 2022 and is 100 per cent self-
located on the consumer’s side of the meter
sufficient in renewable energy, confirming
and include rooftop solar PV units, battery
Tasmania’s status as a world leader in
storage, electric vehicles and chargers) to
renewable energy generation.
large scale hydro, wind and solar generation.
Tasmania is the first state in Australia and one
Legislating the TRET represents one of the
of only a handful of jurisdictions in the world
first major achievements in implementing
to achieve this target. Further information is
the TREAP.
available under 100% target achieved at
www.renewablestasmania.tas.gov.au
Establishment of Renewables Tasmania
The draft TREAP committed the
Government to establish Renewables
Tasmania to better plan, coordinate and
promote the development of renewable
energy in Tasmania.
In December 2020, the Department
of State Growth launched the
Renewables Tasmania website
(www.renewablestasmania.tas.gov.au).
Renewables Tasmania will spearhead
communication of the State’s renewable
energy opportunities as work continues with
Facing page: Tanya Dennison from
Cradle Coast Authority’s Future key stakeholders to drive the Government’s
Energy Hub at Lake Cethana renewable energy policy agenda.
THE DEPARTMENT OF STATE GROWTH 10Renewables Tasmania will also deliver Bilateral Energy and Emissions
efficient, transparent regulation of the Reduction Agreement with the
Tasmanian energy sector, oversight of energy Australian Government
security under the Risk Response Framework,
On 15 December 2020, the Tasmanian
and support the Tasmanian Government in
and Australian Governments signed a
influencing national energy policy.
Memorandum of Understanding (MoU)
Bilateral Energy and Emissions Reduction
Implementation of the Tasmanian Agreement. Key elements in the MoU include
Renewable Hydrogen Action Plan – a commitment that the Australian and the
Completion of initial funding round Tasmanian Governments will work towards
The centrepiece of the Tasmanian Renewable finalising governance, ownership and funding
Hydrogen Action Plan is the Tasmanian arrangements to progress Project Marinus to
Government’s $50 million Tasmanian a final investment decision.
Renewable Hydrogen Industry Development Under the MoU, the Governments will
Funding Program (Funding Program). This jointly provide a further $132.9 million,
program is the largest out of all Australian comprising $39 million from the Tasmanian
states and territories. Government and $93.9 million from the
The Funding Program was launched in May Australian Government, to set up a Special
2020. In November 2020, the Tasmanian Purpose Vehicle to progress Project Marinus
Government announced that $2.6 million to a Final Investment Decision. The MoU also
of the Tasmanian Renewable Hydrogen includes a commitment from the Australian
Fund was being allocated to support Government to consider the inclusion of the
feasibility studies for three large-scale Tarraleah Power Station upgrade as part of
renewable hydrogen projects in Tasmania. its considerations in the first half of 2021, to
The Government will support the underwrite Hydro Tasmania’s Battery of the
progression of the feasibility of these Nation projects. As part of the MoU signing,
large-scale projects and other hydrogen the Minister for Energy announced that
investment projects through the Office Cethana was the preferred pumped hydro
of the Coordinator-General. site and further work will be progressed
on this site.
11 THE TASMANIAN RENEWABLE ENERGY ACTION PLANKey achievements at a glance
TARGET LEGISLATION HYDROGEN
Achieved 100% self- Legislated the world-leading Implementation of the
sufficiency in renewable Tasmanian Renewable Energy Tasmanian Renewable
energy generation Target of 200% of our current Hydrogen Action Plan
before 2022 needs by 2040 – completion of initial
funding round
MoU RENEWABLES SKILLS &
Signed Bilateral Energy Established to coordinate all elements TRAINING
and Emissions Reduction of the Government’s renewable
Rollout of Energising
Agreement with the energy policy agenda and to continue
Tasmania’s skills and
Australian Government to oversee the management and
training initiative
to further progress regulation of our energy sector
Project Marinus and the
Battery of the Nation Launched
initiatives www.renewablestasmania.tas.gov.au
THE DEPARTMENT OF STATE GROWTH 12The Australian Government has also Rollout of Energising Tasmania’s skills
committed to ‘fast track’ Project Marinus and training initiative
approvals process under the Australian
Skills Tasmania is responsible for administering
Government’s “JobMaker” infrastructure
the $16.1 million Energising Tasmania skills
plan. The Australian Government’s
and training initiative with the Australian
‘Technology Investment Roadmap’ discussion
Government. This four-year program will
paper (which is a strategy to accelerate
support Tasmania to develop a skilled
development and commercialisation of low
workforce equipped with the expertise
emissions technologies) has also identified
needed for the Battery of the Nation
Project Marinus and Battery of the Nation
initiative, Project Marinus, a Tasmanian
as critical energy developments for further
renewable hydrogen industry, and other
pumped storage and interconnection in the
related projects in Tasmania. Energising
National Electricity Market.
Tasmania is now fully underway.
The Tasmanian Energy and Infrastructure
Workforce Advisory Committee was
established to oversee the implementation of
The Tasmanian the Energising Tasmania initiative.
In December 2020, an industry-led workforce
Government has development plan (Stage 1) was released with
the intention of informing and driving priority
recently set a target training, and identifying actions that will
to transition 100
support necessary workforce development.
The workforce development plan maps out
per cent of the the skills and training requirements across
major energy projects in Tasmania for the
Government’s next seven years.
vehicle fleet to Rollout of state-wide electric vehicle
electric vehicles by
charging network
The Tasmanian Government is facilitating
2030. the rollout of a state-wide electric vehicle
charging network, including the installation
of 14 fast charging stations at 12 strategic
locations around the State. Leading by
example, the Tasmanian Government has
recently set a target to transition 100 per
cent of the Government’s vehicle fleet to
electric vehicles by 2030.
13 THE TASMANIAN RENEWABLE ENERGY ACTION PLAN14
4. Our Tasmanian Renewable Energy Action Plan Actions
In November 2020,
Tasmania achieved
its status of being
100 per cent self-sufficient
in renewable electricity
generation.
17 ACTION
Image
THE TASMANIAN RENEWABLE ENERGY PLAN
courtesy Hydro TasmaniaPRIORITY ONE
Transforming Tasmania into a
global renewable energy powerhouse
KEY TARGETS
TARGET 1 TARGET 2 TARGET 3
In November 2020, By 2040 we will double From 2030, Tasmania
Tasmania achieved its status our renewable electricity is a producer and exporter
of being 100 per cent generation – with a target set of renewable hydrogen
self-sufficient in renewable of 200 per cent of our baseline
electricity generation of 10,500 GWh per year
ACTIONS STATUS
1.1 Tasmanian Renewable Energy Target Implementation Program New Action
1.2 Introduce a Tasmanian Renewable Energy Guarantee of Origin Scheme New Action
Substantially
1.3 Implement the Tasmanian Renewable Hydrogen Action Plan
Progressed
1.4 Develop a Tasmanian policy framework to coordinate the renewable
energy growth required to achieve the Tasmanian Renewable Energy Substantially
Targets and to support Tasmanian large-scale renewable energy projects Progressed
(the “Renewable Energy Coordination Framework”)
Substantially
1.5 Continue to progress Project Marinus and Battery of the Nation
Progressed
1.6 Undertake community consultation on an ambitious Net Zero Emissions
Commenced
Target
1.7 Scoping study for the development of a Renewable Energy Centre of
Commenced
Excellence
1.8 Develop Bioenergy Vision Commenced
Substantially
1.9 Reducing Transport Emissions Pathway
Progressed
1.10 Listening to, and engaging with, young Tasmanians on renewable energy
New Action
developments
1.11 Renewable Energy Education Program New Action
1.12 Gas Decarbonisation Pathway Study New Action
18As the key cornerstone of this objective,
OBJECTIVE the Government will continue to support
The Tasmanian Government is and progress major national renewable
committed to transforming Tasmania energy projects such as Battery of the
into a global renewable energy Nation, Project Marinus, and existing and
future wind farm developments, as well as
powerhouse.
the opportunities presented by our emerging
In 2018, the Government under its Tasmania- ocean and biomass resources.
First Energy Policy, committed Tasmania
Using Tasmania’s natural advantages and
to becoming 100 per cent self-sufficient
existing renewable resources, the Tasmanian
in renewable energy generation by 2022.
Renewable Hydrogen Action Plan will ensure
Tasmania has reached this milestone fully
Tasmania is perfectly placed to benefit from
two years ahead of schedule.
the emerging global renewable hydrogen
This achievement sets the baseline for industry and we will continue to promote
doubling our renewable energy generation to Tasmania as a premier destination for
21,000 GWh per annum by 2040. The TRET, investment in clean energy projects.
in terms of its ambition, is unmatched globally.
However, the Government recognises
The TRET is vitally important. It signals that community support for large scale
Tasmania’s vision to produce more renewable developments is necessary to ensure
energy than needed on island to export back that renewable energy works for, and
to mainland Australia via the existing Basslink benefits the communities in the areas
interconnector and new interconnection and that these developments take place.
supporting on-island transmission upgrades The Government places a high priority
(Project Marinus). on best practice stakeholder engagement,
maximising local community benefits, and
sound environmental practices. As such
we are developing our Renewable Energy
Coordination Framework, to be published in
early 2021, to ensure that local communities
are properly consulted with, their views
taken into consideration and that community
benefits are maximised when large scale
renewable energy projects occur.
Tasmania will also continue to take a
leadership role in efforts to respond to
climate change. In 2021, this will include the
Tasmanian Government undertaking an
independent review of the Climate Change
(State Action) Act 2008; and conducting a
detailed analysis of the pathway Tasmania
would need to take, to achieve a target
of net zero emissions prior to 2050.
19 THE TASMANIAN RENEWABLE ENERGY ACTION PLANACTION
1.1 Tasmanian Renewable Energy Target
Implementation Program
calendar year, is to be generated by utilising
STATUS: NEW ACTION renewable energy sources.
The key mechanism for delivering the TRET
A key milestone for the implementation will be our Renewable Energy Coordination
of the TREAP was achieved when Framework (the Framework). The
legislation to implement the TRET, along Framework will coordinate, support and drive
with an interim target, was introduced into the new investment in renewable energy
the Tasmanian Parliament in November needed to reach our 200 per cent target.
2020 and was passed by both Houses
on 18 November 2020. Open and transparent reporting on the
progress of implementing the TRET is a key
The Energy Co-ordination and Planning priority. As part of this process, the Director
Amendment (Tasmanian Renewable Energy of Energy Planning will report regularly on
Target) Bill 2020 establishes the Tasmanian the State’s progress in meeting its renewable
Renewable Energy Target (TRET) and energy targets. Key elements in this reporting
interim target, setting the baseline process will include:
100 per cent self-sufficiency at 10,500 GWh
and then the following goals that: • the progress made towards meeting the
renewable energy targets (interim target
• by 31 December 2030, 15,750 GWh and 200 per cent); and
of electricity generated by equipment
connected to the National Electricity • the performance of any schemes that are
Market in Tasmania, in at least one developed to drive investment and achieve
calendar year, is to be generated by utilising our renewable energy targets.
renewable energy sources; and The Director of Energy Planning will report
• by 31 December 2040, 21,000 GWh on the progress of achieving the TRET as
of electricity generated by equipment part of the Director’s Annual Report. The
connected to the National Electricity Report is to be provided to the Minister for
Market in Tasmania, in at least one Energy by 31 October each year.
ACTION
1.2 Introduce a Tasmanian Renewable Energy
Guarantee of Origin Scheme
National Electricity Market (NEM) as well
STATUS: NEW ACTION as being the first Australian State to achieve
100 per cent self-sufficiency in renewable
Renewable energy is one of Tasmania’s great energy generation. However, at present,
competitive advantages. We are Australia’s the majority of Tasmania’s hydro-electricity
renewable energy powerhouse producing is considered ‘below-baseline’ under the
and exporting renewable energy into the Australian Government’s Renewable Energy
20Target, and does not attract renewable for which affordable, reliable and clean
energy certificates that can be traded as a renewable energy is a key requirement.
form of renewable energy currency. It also This is particularly important in relation to
means that a proportion of hydro-electricity the development of a renewable hydrogen
generated is unable to be traced to the industry in Tasmania, representing a key first
customer. This major competitive advantage step towards a hydrogen certification scheme.
associated with Tasmania in being 100 per
Whilst the Tasmanian Government continues
cent self-sufficient in renewable energy
to work with the Australian Government
cannot be fully realised until our ‘below
Department of Industry, Science, Energy
baseline’ renewable energy can be verified.
and Resources (DISER) to develop a national
Working with the Clean Energy Regulator, hydrogen certification scheme, this scheme
Renewables Tasmania will develop an interim may not be operational until 2022 or 2023.
Tasmanian Renewable Energy Guarantee The interim Tasmanian Renewable Energy
of Origin Scheme that will allow traceability Guarantee of Origin Scheme will become
and verification of all Tasmanian renewable operational during 2021, ensuring that
energy generation. This scheme will proponents seeking to establish projects
appropriately recognise Tasmania’s strong in Tasmania have certainty that their
history of investment in renewable energy, project’s renewable credentials are
and cement our competitive advantage as appropriately recognised.
we seek to attract energy intensive industries
ACTION
1.3 Implement the Tasmanian
Renewable Hydrogen Action Plan
The Tasmanian Renewable Hydrogen Action
STATUS: SUBSTANTIALLY PROGRESSED
Plan (TRHAP) is available at:
www.renewablestasmania.tas.gov.au
The global supply and use of energy is
dramatically shifting as countries are looking To achieve the vision and goals set out in
to use cleaner, renewable forms of energy the TRHAP, the Tasmanian Government
to decarbonise their economies. The use of is delivering $50 million over 10 years for
hydrogen, produced from renewable energy, a comprehensive package of renewable
is emerging as a means of achieving these hydrogen support measures that include:
goals. Tasmania is in a unique position where • $20 million Tasmanian Renewable
a large-scale renewable hydrogen industry Hydrogen Industry Development Fund;
could be developed using competitively-
• $20 million in concessional loans;
priced existing and new renewables,
including high capacity factor wind firmed • $10 million worth of support services
by hydropower generation. Tasmanian including competitive electricity supply
renewable hydrogen could supply both arrangements and payroll tax relief;
domestic markets and export markets • assistance for developing offtakes for
with local use providing valuable economic hydrogen end-use; and
energy security and environmental benefits
by reducing dependence on imported • facilitating land and infrastructure access.
fossil fuels.
21 THE TASMANIAN RENEWABLE ENERGY ACTION PLANThese support measures are essential to • Origin Energy’s export scale green
“kick-start” the development of this emerging hydrogen and ammonia plant producing
industry in Tasmania, and are expected to around 420,000 tonnes of green ammonia
leverage significant private sector investment. per annum, expected to be located at the
An initial Funding Program that opened on Bell Bay Advanced Manufacturing Zone;
19 May 2020 is now closed. An independent
• ABEL Energy’s 100MW green hydrogen
Assessment Panel assessed the applications
and methanol for export project at the Bell
and made recommendations to Government.
Bay Advanced Manufacturing Zone; and
One of the recommendations was that
the Government now advance a study on • Grange Resource’s 90–100MW
how a hydrogen offtake market can be renewable hydrogen project to provide
developed in Tasmania. This study is due to process heat for its industrial facility
be completed by the end of Q1 2021, and located at Port Latta.
is expected to provide options on potential
The Government also announced the
smaller scale projects that can demonstrate
Fortescue Metals Group’s potential
the production and end-use of renewable
development of a 250MW hydrogen and
hydrogen in Tasmania. This will provide
green ammonia production facility at Bell Bay,
important information and analysis that can
which is targeted for an investment decision
be used to streamline the implementation
in 2021. The progression of the feasibility
of future projects, and will also provide
of these and other large-scale projects will
opportunities to increase public awareness
be supported through the Office of the
and acceptance of producing and using
Coordinator-General.
hydrogen in Tasmania.
More information about these
On 17 November 2020, the Tasmanian
projects can be found here:
Government announced that $2.6 million of
www.renewablestasmania.tas.gov.au
the Tasmanian Renewable Hydrogen Industry
Development Fund was being allocated to
support feasibility studies for three large-scale
renewable hydrogen projects in Tasmania.
The studies being funded are:
22 22This $650 million redevelopment
would unlock up to 220MW of
flexible hydropower capacity and
create around 250 jobs during peak
construction.
23 THE TASMANIAN RENEWABLE ENERGY ACTION PLAN
Tarraleah Power StationACTION
1.4 Develop a Tasmanian policy framework to coordinate
the renewable energy growth required to achieve the
Tasmanian Renewable Energy Targets and to support
Tasmanian large-scale renewable energy projects (the
“Renewable Energy Coordination Framework”)
The Framework will consider the issues that
STATUS: SUBSTANTIALLY PROGRESSED
matter to local communities and identify
ways to maximise the local benefits like local
The Renewable Energy Coordination employment and business opportunities
Framework is a policy framework to resulting from these projects. The focus will
coordinate and support the renewable be on delivering best practice stakeholder
energy growth required to achieve our TRET. engagement, community benefits, and
The policy focuses on efficiently delivering accessibility of information.
large-scale renewable energy projects, We will also undertake a review of
including the new transmission needed to our regulatory approval and policy processes.
bring about large scale generation projects This review will look at opportunities to
and drive investment within our highly encourage renewable energy development
prospective Renewable Energy Zones. in appropriate locations, minimise land
The Department of State Growth will use conflict, and to provide Government
conduct a wide-ranging public consultation interdepartmental coordination
into the development of the Framework. and consistency.
Community acceptance is essential to the The draft Framework will be released for
support of the renewable energy vision. consultation early in Q1 2021.
ACTION
1.5 Continue to progress Project Marinus
and Battery of the Nation
through the Project Agreement for Marinus
STATUS: SUBSTANTIALLY PROGRESSED
Link to progress the design and approvals
phase of the project. This has been
Project Marinus and Battery of the Nation progressing since early 2020 with significant
are two nationally important renewable developments underway including completion
energy projects that will be key to Australia’s of some surveys, technical design work,
efforts to transition from fossil fuels to scoping of phase costs, resourcing of the
clean energy and reduce the nation’s CO2 project team, and progression of Regulated
emissions. Since the publication of the Investment Test for Transmission activities,
May 2020 draft TREAP, the Australian and stakeholder engagement, and a range of
Tasmanian Governments have taken major other critical activities.
steps in progressing both projects. For Battery of the Nation, Hydro Tasmania has
For Marinus Link, $56 million has been committed up to $30 million to identify the
committed from the Australian Government top pumped hydro site in Tasmania.
24The feasibility work to-date has identified The combined investment in Marinus Link
the top three pumped hydro sites being and new renewable energy developments
Cethana, Rowallan, and Tribute power will inject up to $7.1 billion into the Tasmanian
stations. On 15 December 2020, the Minister economy over the coming years.
for Energy announced that Cethana was the
In July 2020, the Australian Energy Market
preferred pumped hydro site and work will
Operator (AEMO) released its 2020
be progressed on this site. Project Marinus
Integrated System Plan (ISP). The ISP sets
is a proposed 1500MW capacity undersea
out a roadmap for the achievement of the
electricity connection between Tasmania and
NEM’s future energy needs. The ISP identifies
Victoria. The two 750MW links and on-island
“actionable” projects that will help Australia’s
transmission upgrades will allow Tasmania to
transition to clean energy generation. As a
export more of our renewable, reliable and
significant milestone, the ISP identified Project
dispatchable energy resources into the national
Marinus as “actionable” and absolutely
electricity grid. Economic analysis indicates
required as part of the future NEM’s optimal
that in addition to delivering substantial energy
development pathway.
market benefits, the project will deliver
significant broader economic contributions The ISP outlines that the first 750MW link of
from the development, construction, and Project Marinus could be required from as
operation of the Marinus interconnector early as 2028–2029, and the second link from
and supporting transmission in Tasmania and as early as 2031–2032.
Victoria. This includes economic value forecast The actionable status of Project Marinus is
of up to $1.4 billion and 1,400 jobs in Tasmania subject to ‘Decision Rules’ including legislating
and $1.5 billion and 1,400 jobs in Victoria the TRET and resolution of how the costs of
during peak construction. In addition, the project will be recovered. The Tasmanian
up to 2,350 jobs in Tasmania will also be Government has taken action to progress
created from further renewable energy and both of these issues. Legislation to implement
storage development over the life of the the TRET along with an interim target,
Project Marinus. was passed in the Tasmanian Parliament in
November 2020.
The Australian Government is leading a
national reform package with jurisdictions,
including Tasmania, to determine a fair cost
allocation for transmission infrastructure, such
as Project Marinus. A fair cost methodology
is a vital requirement to ensure that
Tasmanians only pay their fair share for
Project Marinus, noting that the benefits from
Project Marinus largely flow to customers in
mainland Australia.
Battery of the Nation
Hydro Tasmania’s Battery of the Nation
project looks at how the State’s hydropower
potential and pumped hydro opportunities
can be unlocked through further
interconnection. The first 750MW Marinus
Link cable will unlock up to 500 megawatts
of latent, available capacity in the existing
hydropower system and make it available
to the NEM. It will also trigger repurposing
25 25 PLAN
THE TASMANIAN RENEWABLE ENERGY ACTIONelements of the existing hydro fleet, million from the Australian Government,
augmenting current assets to increase the to set up a Special Purpose Vehicle (SPV)
megawatt capacity in the current schemes. to progress Project Marinus to a Final
The second 750MW Marinus Link cable Investment Decision. The target date for
creates the opportunity to develop the first the SPV to be operational is 1 July 2021.
Tasmanian pumped hydro project.
• The Governments have also agreed
The Australian Government has committed under the MoU to work together to
to developing an underwriting mechanism achieve a fair cost transmission
for Battery of the Nation. The Australian outcome for the Project.
Renewable Energy Agency (ARENA) has
• These commitments will ensure that the
supported Battery of the Nation project
Design and Approvals (D&A) phase for
studies with $5.0 million in funding as part of
Project Marinus can be completed, with a
its Advancing Renewables Program.
view to the Project being commissioned
as early as 2027–28, consistent with the
Power system upgrades timing identified for the project under the
– Tarraleah Scheme Australian Energy Market Operators 2020
The Tarraleah Scheme was built in the Integrated System Plan.
1930s and is a critical part of the Tasmanian • The support in the MoU is in addition
hydropower system. With appropriate to the $56 million grant provided by the
financial and underwriting support, the first Australian Government in 2019 through
Marinus Link cable presents an opportunity the Project Agreement for Marinus Link to
to redevelop the Tarraleah Scheme to commence the D&A phase.
provide greater benefits for the NEM of the
future. This $650 million redevelopment • The MoU also includes a commitment
would unlock up to 220MW of flexible from the Australian Government to
hydropower capacity and create around 250 consider the inclusion of the Tarraleah
jobs during peak construction. Power Station upgrade as part of its
considerations in the first half of 2021 to
Commonwealth-Tasmania Bilateral underwrite Hydro Tasmania’s Battery of
Energy and Emissions Reduction the Nation projects.
Agreement Memorandum of
Understanding (MoU) Battery of the Nation (BotN)
The Australian and Tasmanian Governments • The State Government will provide a
have signed a MoU for the Energy and scoping document on the BotN projects
Emissions Reduction Agreement that by February 2021.
recognises and further builds on the value of • The Governments will scope out initial
Tasmania’s renewable energy opportunities. underwriting options for the BotN
The MoU recognises the existing projects by Q1 2021.
commitments made to Tasmanian energy
• The Australian Government will finalise
projects, but importantly, also provides
options to provide adequate underwriting
significant new commitments from both
and/or financing support to enable a
Governments to take our critically important
commercial final investment decision(s) on
Project Marinus and Battery of the Nation
the agreed BotN hydropower projects.
projects forward.
• The Australian Government will consider
The MoU provides for the following:
a capacity upgrade of Tarraleah power
station as part of its work program
Project Marinus
for BotN.
• The Governments will jointly provide a
further $132.9 million, $39 million from
the Tasmanian Government and $93.9
26ACTION
1.6 Undertake community consultation on an
ambitious Net Zero Emissions Target
The Tasmanian Government recognises
STATUS: COMMENCED that there is the opportunity to set a more
ambitious net zero emissions target for
Tasmania has a unique greenhouse gas the State. In 2021, the Government will
emissions profile in comparison with conduct a detailed analysis of the pathway
other Australian jurisdictions, due to the Tasmania would need to take to achieve a
longstanding investment in renewable energy target of net zero emissions prior to 2050,
and the carbon sink in our forests. with consideration given to the potential
challenges and opportunities on industries
In 2015, Tasmania became the first Australian
and employment. The review of the target
jurisdiction to achieve net zero emissions,
will be informed by a strong scientific and
which was a significant achievement.
economic evidence base, and community
Based on the latest available data, Tasmania
consultation. Developing practical options
has achieved its commitment of net zero
to further reduce emission across Tasmania’
emissions by 2050 for the fourth year
economy will be key to this work. The
in a row.
Tasmanian Government will work with the
By continuing to take action to reduce on- Australian Government, local Government,
island emissions and support Australia’s Tasmanian businesses and major industry,
transition to a low-carbon future, Tasmania to further drive and enhance the State’s
can maintain its status as a global leader on emission reduction strategies.
climate change action.
Consultation on the options to set a more
ambitious net zero emissions target will
be undertaken in 2021 as part of the next
independent review of the Climate Change
(State Action) Act 2008 (the Act). The broad
focus of this review will be to strengthen
Tasmania’s legislative framework for taking
action on climate change, and ensure it
provides a sound foundation for our climate
change mitigation and adaptation initiatives.
The review of the Act will also inform
Tasmania’s next Climate Change Action Plan
for 2021 onwards.
The views and opinions of young people
will be sought through broad community
consultation and also through engagement
with the Premier’s Youth Advisory Council.
27 THE TASMANIAN RENEWABLE ENERGY ACTION PLANACTION
1.7 Scoping study for the development of a
Renewable Energy Centre of Excellence
a partnership between industry, the
STATUS: COMMENCED research sector, academic institutions and
Government. A Tasmanian Renewable
Tasmania already has world class renewable Energy Centre for Excellence has the
energy research and development capabilities potential to establish a world class centre
through the University of Tasmania’s Centre for innovative research, training and
for Renewable Energy and Power Systems collaboration required to support growth
(CREPS), the Blue Economy Cooperative in the renewable energy sector.
Research Centre (Blue Economy CRC), There is also an opportunity to interact
the Australian Maritime College and the or partner with other Tasmanian-based
significant skills and knowledge base of the initiatives that have alignment with
State’s energy businesses and associated renewable energy development. The
sectors. Tasmania’s expertise in renewable Department of State Growth has consulted
energy generation is already sought after with key stakeholders including UTAS
by international markets, with commercial and the Blue Economy CRC in relation
partnerships underway in the Indian to the scope and objectives of a potential
subcontinent, South East Asia and the South Renewable Energy Centre for Excellence
Pacific amongst others. and will commission a formal scoping study
A future Renewable Energy Centre for to test the viability of the concept in
Excellence would seek to harness these Q1 2021.
existing resources and capabilities through
ACTION
1.8 Development of a Bioenergy
Vision for Tasmania
The Department of State Growth has
STATUS: COMMENCED consulted with, and received advice from
industry experts such as Bioenergy Australia
Bioenergy uses organic renewable materials and participated in the Australian Biomass for
(known as biomass, for example, waste Bioenergy Assessment Project. A range of
from cities and towns, agricultural, industrial scientific publications, including the Tasmanian
and forestry sources), that would otherwise Government’s 2016 Indofur Report, have
decompose in the landscape to produce heat, also identified significant potential for
electricity, biogas and liquid fuels. bioenergy in Tasmania. The Government
has listened to these experts and will
Tasmania has an abundance of underutilised
develop a Bioenergy Vision in consultation
industrial, municipal, agricultural and forestry
with industry and stakeholders over the
waste and the Tasmanian Government is
next 12 months. The Bioenergy Vision will
seeking to accelerate the adoption
identify how the State can unlock private
of bioenergy.
sector investment in bioenergy in Tasmania,
28increasing employment, reducing waste and In developing the Bioenergy Vision, the
greenhouse gas emissions while producing Government will also consider where
more Tasmanian renewable energy. bioenergy provides a waste solution
Renewables Tasmania will explore options to supporting the circular-economy, as well as
use bioenergy to decarbonise by displacing how bioenergy can support the agricultural
fossil fuels used in heat generation and the and forestry sectors to grow and become
production of transport fuels. Renewables more competitive. Importantly, the
Tasmania will also examine the feasibility of development of a Bioenergy Vision will
replacing boilers in Government buildings that focus on using waste and residues.
currently run on fossil fuels, with renewable
The Bioenergy Vision will be completed
energy sources including boilers that use
in Q4 2021.
biomass as their feedstock.
ACTION
1.9 Reducing Transport Emissions Pathway
This new infrastructure will provide a
STATUS: SUBSTANTIALLY PROGRESSED
convenient charging network for locals, as
well as tourists who wish to travel around
Transport is a significant source of Tasmania’s the State in electric vehicles.
greenhouse gas emissions and vehicle fleet The Tasmanian Government has supported
costs are a considerable expense for the a variety of events to increase community
Tasmanian Government, local government, awareness of electric vehicles, including
the private sector and the community. community electric vehicle ‘try and drive’
Tasmania is ideally placed to benefit from events, electric bike expos and a driverless
a growing electric vehicle market. When electric bus demonstration. The Government
powered by locally-produced renewable has also supported vehicle fleets to
energy they have the potential to improve prepare for electric vehicle uptake through
the efficiency of the State’s vehicle fleet, the Smarter Fleets Program, including
through reduced transport costs and local government fleets and Tasmanian
emissions. Electric vehicle uptake reduces Government agency fleets.
Tasmania’s dependence on imported liquid As a key next step, the Tasmanian
fossil fuels and increases demand for our Government has committed to continue its
clean renewable energy. proactive leadership approach by transitioning
The Tasmanian Government has made the Tasmanian Government fleet to 100 per
significant progress to support electric cent electric vehicles by 2030. The target will
vehicle uptake, in partnership with the cross- be underpinned by the development of a
sectoral Electric Vehicle Working Group. new strategy which will incorporate broader
This includes facilitating the rollout of a actions to improve the efficiency of the
state-wide electric vehicle charging network. Tasmanian Government vehicle fleet.
Since 2018, the Tasmanian Government has Incorporating electric vehicles into the
provided over $600,000 in funding through Tasmanian Government fleet will stimulate
the ChargeSmart Grants Program to support demand for the technology locally, raise
a state-wide electric vehicle charging network community awareness through exposure,
including 14 fast chargers across Tasmania, and contribute to the second-hand electric
and 23 workplace and destination chargers. vehicle market in the State.
29 THE TASMANIAN RENEWABLE ENERGY ACTION PLANTasman Bridge 30
Metro Tasmania will also trial zero emissions to-base’ transport activities, such as buses,
buses in the State (battery electric or fleet vehicles, freight (including road and rail)
hydrogen), to explore opportunities for the and marine applications (such as ferries and
State’s public buses to be powered by locally barges). The optimised deployment and use
generated renewable energy. This will see a of hydrogen refuelling infrastructure will also
northern and southern trial of zero emissions be investigated.
buses underway within the next two years.
To bring all these initiatives together, the
Supporting electric vehicle uptake aligns with
Government will consult with the community
the Tasmanian Government’s commitment
in 2021 to develop Tasmania’s next whole-
to generate 200 per cent of the State’s
of-government Climate Change Action
electricity needs from renewable energy
Plan which will consolidate current and
by 2040, and fast-track a renewable
new actions to reduce emissions from the
hydrogen industry.
transport sector. This will include a focus on
Tasmania’s Renewable Hydrogen Action supporting electric vehicle uptake (battery
Plan identifies the value to the transport electric and hydrogen fuel cell) and biofuels.
industry of a thriving ‘green hydrogen’ sector The Tasmanian Government will continue
in Tasmania. To this end, the Tasmanian to utilise the cross-sectoral Electric Vehicle
Government will investigate opportunities for Working Group to develop a coordinated
the use of hydrogen transport technologies approach to support electric vehicle uptake.
in the State, with an initial focus on ‘return-
ACTION
1.10 Listening to, and engaging with, young
Tasmanians on renewable energy
The Government has listened, and
STATUS: NEW ACTION recognises the importance of seeking out
the views of young people. As a new Action
The Government recognises that climate in the TREAP, the Tasmanian Climate
change is one of the most important issues Change Office will work with existing youth
for young people. This became clear when networks, like the Premier’s Youth Advisory
we undertook a dedicated consultation with Council (PYAC), as part of the consultation
young people on our plans for Tasmania’s process for developing the next Climate
renewable energy future and produced a Change Action Plan.
young persons and child friendly version of The Department of State Growth will
the TREAP. We received over 80 responses commit to providing regular updates to
from young Tasmanians who commented the PYAC on energy issues.
not just about renewable energy but a range
of other related climate change issues. One
clear message from the consultation was that
Government needs to more fully engage
and listen to young people on the issues of
importance to them.
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