Procurement underway for Tarraleah hydropower scheme redevelopment

A major milestone has been reached in Hydro Tasmania’s plan to redevelop the iconic Tarraleah hydropower scheme with the first stage of construction tender kicking off.

The Request for Proposal (RFP) phase will seek engineering, procurement and construction contractors to deliver the project as well as supply generation equipment for the proposed new power station, opening opportunities for businesses whether large or small.

Hydro Tasmania will be hosting an industry briefing session to share more details about the procurement stages and how businesses can participate.

“We are going out to market to request proposals from construction contractors suitably qualified to build the reimagined scheme. We’re also making sure that local businesses will have ample opportunity to subcontract to the project.

“We will utilise the Industry Capability Network Tasmania as a central part of our approach to ensuring Tasmanian business participation.

“This is an important part of ensuring a high degree of confidence and certainty in the project constructability and the final cost estimate,” Hydro Tasmania CEO Rachel Watson said.

The redevelopment of Tarraleah scheme is one of two major hydropower projects proposed, with the second being a long-duration pumped storage project at Cethana.

A Final Investment Decision for the Tarraleah hydropower scheme redevelopment has not yet been reached, and it is still subject to required environmental and planning approvals as well as approval by the Tasmanian Parliament.

“The Tarraleah Scheme has given more than 85 years of faithful service. But it is reaching the end of its operational life and there is no ‘do nothing’ option for its future.

“Our proposal is to fully redevelop the scheme, building a more efficient water transfer system and a new power station that can generate more energy.

“Investing in the scheme’s future means more energy and flexible capacity to meet the forecast growth in demand, address the risks posed by ageing assets and increase revenue and value that can be returned to Tasmanians,” Ms Watson said.

Main works for the redevelopment of Tarraleah hydropower scheme will include:

• Preparation for construction of a new intake at Lake King William
• A new 1-kilometre connecting tunnel from Lake King William
• Dam safety improvements at Mossy Marsh Dam and provision of a new emergency spillway location (already completed and the site is reopened)

This project is also proposed to include the construction of a new power station near the existing facility, which will continue to operate while construction works are underway.

The Australian Government has committed about $65 million for the Tarraleah hydropower scheme redevelopment.

“This is about investing in our future for both existing assets and new projects.

“This is a significant milestone and offers opportunities for Australian and more local businesses, large and small.

“Hydro Tasmania will ensure local businesses will have the opportunity to help deliver this project, working with Industry Capability Network Tasmania to ensure local involvement.

“Tarraleah has been servicing Tasmania for more than eight decades, but we know it’s reaching the end of its life.

“The Request for Proposal will provide market-informed cost estimate, which is a critical component of a Final Investment Decison.

“This is about delivering a high degree of confidence and certainty in the project’s constructability and the final cost estimates, ahead of endorsement by the Government and Parliament.

“Hydropower has powered Tasmania for over a century and will continue to be the backbone of our energy system for years to come,” Minister for Energy and Renewables Nick Duigan said.

Source: Premier of Tasmania – Latest News; Hydro Tasmania (1, 2); Roads & Infrastructure Australia