Hydro Tasmania Seeks 1,500 GWh Wind, Solar Deals

• Hydro Tasmania seeks up to 1,500 GWh/year from large-scale wind and solar via long-term offtakes, diversifying hydro, meeting rising demand, and securing bankable, affordable low-emissions power for Tasmania's grid.

Hydro Tasmania, the state-owned utility, launched a solicitation for up to 1,500 GWh a year of renewable generation via a commercial offtake agreement. The company is seeking supply from large-scale wind or solar projects, aiming to lock in additional output to cover rising electricity needs across Tasmania.

The planned offtake would diversify Hydro Tasmania’s predominantly hydro portfolio and provide long-term revenue certainty for new projects. The move signals accelerating demand on the island’s grid and a push to secure affordable, low-emissions power. Further details on contracting terms and timelines were not disclosed. The tender seeks bankable, long-term supply contracts.

What are the key terms and timelines for Hydro Tasmania’s renewable offtake tender?

• Contracted volume: up to 1,500 GWh per year, with flexibility to award multiple tranches across projects
• Eligible technologies: utility-scale wind and solar PV; hybrid or co-located storage may be considered for profile shaping
  
• Delivery point: NEM-settled offtake with delivery into Tasmania; proponents must detail how energy is delivered/profiled to align with Tasmanian demand
  
• Term: long-term PPA sought (indicatively 10–20 years), targeting bankability for new-build projects
• Start date/COD window: new-build or expansion projects preferred; commencement targeted following project COD within an agreed window; early energy pre-COD may be considered subject to pricing
  
• Pricing structure: fixed or indexed strike with CPI linkage; options for shaped/firmed products; clear rules on negative price events, curtailment, and MLF/constraint risk allocation
  
• Environmental certificates: LGCs to be bundled or unbundled as specified; proponents to state REC treatment and surrender obligations
• Volume and shape: as-generated or shaped supply; caps/floors, monthly baselines, and tolerance bands to be proposed
• Curtailment and outages: defined compensation regime for network or market curtailment; planned outage notifications and caps
  
• Grid and connection: evidence of connection progress, GPS status, and network studies; milestone schedule with liquidated damages for slippage
  
• Credit and security: minimum counterparty credit rating or parent guarantee; performance bonds and development security sized to tranche award
  
• Social and environmental: community benefit sharing, First Nations engagement, biodiversity and circularity plans assessed as part of non-price criteria
  
• Reporting and compliance: metering, data transparency, and audit rights; compliance with Tasmanian and Commonwealth renewable schemes
• Step-in/change-in-law: standard step-in rights, change-in-law allocation, and force majeure provisions

Indicative timelines (subject to tender documents):

• EOI release: now open
• EOI submissions: due in 4–6 weeks
• Shortlist notification: within 2–4 weeks of EOI close
  
• RFP issued to shortlist: immediately after shortlist
• RFP period: 8–10 weeks for firm, fully costed bids
• BAFO/clarifications: 2–3 weeks
• Preferred proponent selection: within 4 weeks of BAFO
  
• Contract execution: within 4–6 weeks of selection
• Financial close: within 3–6 months of PPA execution
• Start of supply: aligned to COD, targeting first energy within the agreed window after FC (typ. 18–36 months, subject to connection)