Hydro Tasmania CEO Ian Brooksbank: Not enough energy generation to meet state’s future needs

The state’s peak business body has called for urgent government action after the head of Hydro Tasmania revealed that the island didn’t have enough energy generation to meet its future needs.

A Goldwind turbine installed at Cattle Hill Wind Farm in Tasmania.

The state’s peak business body says Tasmania is in the midst of an energy crisis and the Rockliff government needs to urgently address the “disgraceful” situation in order to enable the economy and industry to grow.

Tasmanian Chamber of Commerce and Industry CEO Michael Bailey has ramped up pressure on the government over energy following frank public comments by Hydro Tasmania boss Ian Brooksbank.

Mr Brooksbank told the Australian on Thursday that the state did not have enough energy generation to facilitate industry expansion, the transition away from gas or the electrification of the vehicle fleet.

He said Tasmania would need new generation, such as from wind farm developments, if it was to accommodate even just the state’s own future energy needs.

Hydro Tasmania CEO Ian Brooksbank. Picture: Chris Kidd

“For future demand, whether it’s electrification of the economy in terms of residents degasifying cooking, heating and driving electrical cars, or industry converting its gas and coal processes to some form of electro-boilers, there will need to be an expansion of the renewable energy generation in the state,” Mr Brooksbank said.

According to Mr Bailey, the Hydro chief’s remarks showed “the full scale of the challenge and his comments can’t be ignored”.

“The government must act urgently and work with proponents to build new renewable generation urgently,” Mr Bailey said.

“We know there are businesses that have put major expansion plans on hold because they simply can’t access enough power. It’s a disgraceful situation that the government needs to fix urgently.”

Ian Jones, the chair of Clean Energy Tasmania, which represents major renewable energy proponents, said it was positive that Hydro was “prepared to accept the reality of the [energy] situation”.

“Tasmania should be the renewable generation powerhouse of the country. Instead it looks like the government is squandering the 100-year head start we had on the rest of the country when it comes to renewables,” he said.

Labor energy spokesman Dean Winter said Mr Brooksbank had confirmed that industries seeking 50MW of power or more would need to wait until further generation came online.

“Tasmania’s economy is forecast to shrink this financial year. Energy costs and lack of supply are key drivers of that,” he said.

Labor's energy spokesman Dean Winter and TCCI CEO Michael Bailey speak to the media on parliament lawns in Hobart on Tuesday, November 7, 2023.

“Prices have skyrocketed and at least 10 businesses have been told by Hydro Tasmania there is not enough power available for them to grow or commence.”

A government spokeswoman said the energy system was “currently in balance” and new generation projects had the government’s strong support.

“Fearmongering and talking Tasmania down is commonplace for Labor, however they have reached a new low misrepresenting a well-respected energy CEO who clearly stated in [government business enterprise] hearings, ‘No businesses have been told by Hydro Tasmania they can’t have power’,” she said.