Cethana pumped hydro project

Lake Cethana in the Mersey-Forth scheme is Hydro Tasmania's preferred site for a proposed pumped hydro project. Pumped hydro will play a big role in the future because we're using more wind and solar power for electricity. But wind and solar don't always generate power. That's where pumped hydro comes in - it helps make our energy grid more reliable.

Our team loves talking about these plans and hearing what you think! You can read more on our project page or get in touch with us.

If you'd like to know more about the proposed workforce accommodation facility, head here.

Project update - October

We’re progressing our plans for housing a future workforce for the Cethana pumped hydro project. We’ve found a site in Middlesex for a temporary Workforce Accommodation Facility.

The site has advantages of being less than 10-minute drive to site, suitable size and flat terrain, potential to minimise visual impact and easy access off Cradle Mountain Road.

Thanks to everyone in the community who has shared their feedback. We’re committed to planning the facility carefully so that any impacts to the community are minimised. We continue to welcome peoples comments on the project at any time.

We’re also doing technical assessments to better understand and manage potential impacts. The findings will be shared as part of the WAF Development Application submitted to Kentish Council. The community will have the opportunity to comment when it goes on public exhibition.

Check out our WAF info page and keep an eye on this page for updates!


July 2025 - Project Update

We welcomed staff from Kentish Council for a tour of the Cethana pumped hydro site. Nine Councillors and staff enjoyed a picture-perfect Winter’s day, visiting the existing Cethana Power Station, Lake Cethana and the upper storage site above the lake.

The tour was a great opportunity for the council members to ask questions and familiarise themselves with where major infrastructure is proposed to be built.



What is the Cethana project?

From our investigations, we identified three top opportunities in the state for pumped hydro (in the North-West and on the West Coast). We gathered detailed information on each, and assessed how suitable they were based on technical, environmental, social and economic factors. Hearing from local communities was an important part of this process.

Cethana was selected as our preferred site because of its deep storage capacity, cost-effectiveness and higher technical certainty, environmental and social sustainability and flexibility in sizing and capacity.

The Cethana project would utilise the existing Lake Cethana as the lower storage. A new upper storage would be constructed to the west of the existing lake. An underground power station would be constructed between the two storages and underground tunnels would link them together.

There would be a new transmission line connection from the power station switchyard to TasNetworks’ proposed new Staverton Substation, primarily located within the existing transmission line corridor.

The project would have a generating capacity of 750 MW and a storage capacity of 20 hours. The construction phase would extend for approximately six to eight years with a construction workforce of up to 400 people (at the peak).

We are currently planning for a new temporary workforce accommodation facility. You can read more about the WAF here.

The map below details the proposed project layout and where major infrastructure would be built.

If you'd like to make the diagrams larger, right click and select 'open in a new tab".


About pumped hydro

Australia’s electricity market is relying more and more on wind and solar generation. This brings a growing need for energy in storage to cover those times when the sun doesn’t shine and the wind doesn’t blow (or both together!).

Pumped hydro will help keep energy supply reliable for consumers by generating electricity on-demand to fill in the gaps.

Pumped hydro schemes have two water storages – one at high elevation (upper storage) and one at low elevation (lower storage).

Here’s how it works:

  • When the demand for electricity is low, or when renewable sources are abundant (and prices are low), water is pumped to the upper storage. It is then stored.
  • When the demand for electricity is high, or when renewable sources are scarce (and prices are high), the water in the upper storage is used to generate electricity. Water in the upper storage is released downhill, through the power station turbines, generating electricity at the flick of a switch.

You can also check out our short video which explains it all!

https: //www.youtube.com/watch?v=cbh_fhwjzNs



Project approvals process


The Cethana project will require a range of approvals at Commonwealth, state and local government level.

In 2023, we submitted a referral to the Commonwealth Government under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

The EPBC Act focuses on protecting matters of national environmental significance (called MNES).

Through our studies, we have identified the flora and fauna that may be impacted by the development and proposed mitigation measures to remove or reduce that impact.

This information is provided to the Commonwealth through our referral, allowing the Environment Minister to make a decision on whether project approval is needed and what controls need to be in place (if any).

Since our referral, we’ve undertaken extensive geotechnical and engineering work and the potential project footprint has increased. We consulted with DCCEEW (the regulatory body that manages EPBC referrals) on the changes since the original referral. DCCEEW recommended withdrawing and submitting a new referral. The new referral will ensure they can consider the works based on the latest information.

We will submit a new EPBC referral in coming months.

This is part of our work to reach a Final Investment Decision, which is a commercial assessment of the project’s viability.

Talking with the community


It’s important for us to continue to understand the views of the community and any concerns or issues you have about what is proposed.

We also want to know about and make the most of the opportunities that exist from the project for the local community.

As we finalise our specialist technical studies, we will share the findings with community in coming months.

In the meantime, we are always happy to discuss the project so please get in touch.

What's next


Specialist studies

Our technical studies allow us to better understand the potential project impacts and opportunities, and are part of the regulatory approvals process. These studies include:

  • Noise and vibration
  • Traffic and transport
  • Visual amenity
  • Social and economic, including workforce accommodation

The findings will form part of the Environmental Impact Statement (EIS) and will be shared with communities as we progress.


We are here to listen. Post your questions below!

Lake Cethana in the Mersey-Forth scheme is Hydro Tasmania's preferred site for a proposed pumped hydro project. Pumped hydro will play a big role in the future because we're using more wind and solar power for electricity. But wind and solar don't always generate power. That's where pumped hydro comes in - it helps make our energy grid more reliable.

Our team loves talking about these plans and hearing what you think! You can read more on our project page or get in touch with us.

If you'd like to know more about the proposed workforce accommodation facility, head here.

Project update - October

We’re progressing our plans for housing a future workforce for the Cethana pumped hydro project. We’ve found a site in Middlesex for a temporary Workforce Accommodation Facility.

The site has advantages of being less than 10-minute drive to site, suitable size and flat terrain, potential to minimise visual impact and easy access off Cradle Mountain Road.

Thanks to everyone in the community who has shared their feedback. We’re committed to planning the facility carefully so that any impacts to the community are minimised. We continue to welcome peoples comments on the project at any time.

We’re also doing technical assessments to better understand and manage potential impacts. The findings will be shared as part of the WAF Development Application submitted to Kentish Council. The community will have the opportunity to comment when it goes on public exhibition.

Check out our WAF info page and keep an eye on this page for updates!


July 2025 - Project Update

We welcomed staff from Kentish Council for a tour of the Cethana pumped hydro site. Nine Councillors and staff enjoyed a picture-perfect Winter’s day, visiting the existing Cethana Power Station, Lake Cethana and the upper storage site above the lake.

The tour was a great opportunity for the council members to ask questions and familiarise themselves with where major infrastructure is proposed to be built.



What is the Cethana project?

From our investigations, we identified three top opportunities in the state for pumped hydro (in the North-West and on the West Coast). We gathered detailed information on each, and assessed how suitable they were based on technical, environmental, social and economic factors. Hearing from local communities was an important part of this process.

Cethana was selected as our preferred site because of its deep storage capacity, cost-effectiveness and higher technical certainty, environmental and social sustainability and flexibility in sizing and capacity.

The Cethana project would utilise the existing Lake Cethana as the lower storage. A new upper storage would be constructed to the west of the existing lake. An underground power station would be constructed between the two storages and underground tunnels would link them together.

There would be a new transmission line connection from the power station switchyard to TasNetworks’ proposed new Staverton Substation, primarily located within the existing transmission line corridor.

The project would have a generating capacity of 750 MW and a storage capacity of 20 hours. The construction phase would extend for approximately six to eight years with a construction workforce of up to 400 people (at the peak).

We are currently planning for a new temporary workforce accommodation facility. You can read more about the WAF here.

The map below details the proposed project layout and where major infrastructure would be built.

If you'd like to make the diagrams larger, right click and select 'open in a new tab".


About pumped hydro

Australia’s electricity market is relying more and more on wind and solar generation. This brings a growing need for energy in storage to cover those times when the sun doesn’t shine and the wind doesn’t blow (or both together!).

Pumped hydro will help keep energy supply reliable for consumers by generating electricity on-demand to fill in the gaps.

Pumped hydro schemes have two water storages – one at high elevation (upper storage) and one at low elevation (lower storage).

Here’s how it works:

  • When the demand for electricity is low, or when renewable sources are abundant (and prices are low), water is pumped to the upper storage. It is then stored.
  • When the demand for electricity is high, or when renewable sources are scarce (and prices are high), the water in the upper storage is used to generate electricity. Water in the upper storage is released downhill, through the power station turbines, generating electricity at the flick of a switch.

You can also check out our short video which explains it all!

https: //www.youtube.com/watch?v=cbh_fhwjzNs



Project approvals process


The Cethana project will require a range of approvals at Commonwealth, state and local government level.

In 2023, we submitted a referral to the Commonwealth Government under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

The EPBC Act focuses on protecting matters of national environmental significance (called MNES).

Through our studies, we have identified the flora and fauna that may be impacted by the development and proposed mitigation measures to remove or reduce that impact.

This information is provided to the Commonwealth through our referral, allowing the Environment Minister to make a decision on whether project approval is needed and what controls need to be in place (if any).

Since our referral, we’ve undertaken extensive geotechnical and engineering work and the potential project footprint has increased. We consulted with DCCEEW (the regulatory body that manages EPBC referrals) on the changes since the original referral. DCCEEW recommended withdrawing and submitting a new referral. The new referral will ensure they can consider the works based on the latest information.

We will submit a new EPBC referral in coming months.

This is part of our work to reach a Final Investment Decision, which is a commercial assessment of the project’s viability.

Talking with the community


It’s important for us to continue to understand the views of the community and any concerns or issues you have about what is proposed.

We also want to know about and make the most of the opportunities that exist from the project for the local community.

As we finalise our specialist technical studies, we will share the findings with community in coming months.

In the meantime, we are always happy to discuss the project so please get in touch.

What's next


Specialist studies

Our technical studies allow us to better understand the potential project impacts and opportunities, and are part of the regulatory approvals process. These studies include:

  • Noise and vibration
  • Traffic and transport
  • Visual amenity
  • Social and economic, including workforce accommodation

The findings will form part of the Environmental Impact Statement (EIS) and will be shared with communities as we progress.


We are here to listen. Post your questions below!

  • Project update - June

    supporting image

    The next stage for Cethana will be the Environmental Impact Statement (EIS). 

    Getting together with the community always give us such valuable feedback, which is important as we start to understand the finer details of the project.

    We love hearing what local people and businesses think about the planned pumped hydro project at Cethana. We’ve already had great conversations - hearing everything from concerns and issues to exciting ideas and opportunities!  

    We recently met with the Mersey Forth Recreational Management Committee, which included members from local ski clubs, rowing and canoe groups, and the Kentish Council. The group visited the Cethana site to learn more about the project.

  • Project update - May

    supporting image

    New EPBC referral

    In 2023, we submitted our referral to the Commonwealth Government under the EPBC Act (Environment Protection and Biodiversity Conservation Act 1999). Since our referral, we’ve undertaken extensive geotechnical and engineering work and the potential project footprint has increased.

    We consulted with DCCEEW (the regulatory body that manages EPBC referrals) on the changes since the original referral. DCCEEW recommended withdrawing and submitting a new referral. The new referral will ensure they can consider the works based on the latest information.

    We are continuing to progress the Cethana project and expect to be submitting a new EPBC referral by June this year.

  • Project update - April

    supporting image

    There is a lot happening behind the scenes as we plan this exciting proposal. We will be back out in the community soon so keep an eye out!

    Workforce accommodation: A new pumped hydro project would mean lots of jobs during construction and we need to plan for where we could house all the workers.

    Elders Devonport helped to identify potential sites for a new workforce accommodation facility, receiving lots of applications. We are now deciding which one would make the best site for workers to live.

    What is ahead? Thank you to everyone who has joined the conversation about what the future could look like if we build a new pumped hydro project at Cethana. You'll see our team out and about in the Kentish community soon. We are ready to talk about:

    • The project planning process and where it is up to
    • How we plan to manage any future construction impacts and opportunities.


    Image: Did you know that a commercial diving school operates on Lake Cethana? The water is up to 100 metres deep, making it an ideal dive site for deeper offshore diver training. Our Area Administrator Tanya took this moody shot of the dive barge on the lake.

  • Have your say! EPA draft guidelines

    supporting image

    Have your say! Environmental guidelines now open for comment


    		 As part of our planning, we are preparing a report called an Environmental Impact Statement. This report looks at potential impacts and how we can reduce or avoid them.

    The EPA has published its draft guidelines on how the EIS should be prepared and you can share your thoughts until Wednesday 30 April.

    Head here… https://epa.tas.gov.au/business-industry/assessment/proposals-assessed-by-the-epa/hydro-tasmania-cethana-phes-construction-works-lake-cethana

  • Cethana open day wrap-up

    supporting image

    A little rain did nothing to deter the enthusiasm of more than 160 locals who joined us at Cethana Power Station for our open day on Saturday 23 November. Thanks to everyone who visited on the day and for your curiosity and questions about the Cethana pumped hydro project.

    Our team greatly enjoyed the day, chatting about the role of Cethana today and what the future might look like with a proposed 750MW pumped hydro project. Pictured are Bronwyn, Stewart and Gina. Thanks also to Kentish Lions for keeping the crowds well fed!

    If you want to be the first to know about future open days, sign up to The Spill here (Hydro Tasmania’s quarterly e-news). To keep up to date with the Cethana project, you can subscribe here for future updates.



  • Community survey results

    supporting image

    Thanks to everyone who completed our community survey on the Cethana pumped hydro. The survey was designed to find out more about how locals are feeling about the project and its positive and negative effects including impacts on road safety, recreation and tourism, residential amenity and accommodation, as well as opportunities for local employment and economic development.

    We received more than 100 responses and lots of comments that will help guide our planning and next steps!

    When considering potential negative project effects concerns raised included:

    • Potential impacts on housing availability and affordability in and around Sheffield
    • Potential impacts on local health care resources
    • Concerns regarding potential impacts on plants and animals and overall biodiversity of the local area
    • Potential increase in traffic on the local and regional roads and concerns regarding road safety
    • Rural and residential amenity impacts from traffic and construction activities
    • Concerns that the project may limit public access to natural areas

    When considering potential positive effects or opportunities of the project the following themes stood out:

    • Job creation
    • Economic opportunities for local and regional businesses
    • Potential increase in population of local communities such as Sheffield
    • Broader economic benefits for Tasmania

    Your feedback will help inform our social impact assessment. Our team will be back out to talk with the community in the new year, focused on what our studies have found in traffic, visual amenity, noise and air quality, and social impacts.

    You’re welcome to get in touch in the meantime if you have questions.

  • Community survey winners!

    supporting image

    Thank you to everyone who completed our community on the Cethana project. We received more than 100 responses and lots of great comments!

    We're delighted to announce the lucky prize winners. Congratulations to B King, Waine Whitbread, Susan Lamont, Bart Wisse and Rayden Cresswell who have each won a $100 gift voucher.

  • Project update - November

    supporting image

    Share your views! Thanks to everyone who has so far completed our community survey on the Cethana project. There’s still time to share your thoughts and be in the running for a great prize – one of five $100 gift vouchers. Head here to complete the short survey and you’ll find the competition terms and conditions here. Hurry! The survey closes on November 8.

    Latest project information: Have you seen our October community update? Our newsletter includes updated information about the project, workforce accommodation, approvals and what’s up next. Click here to read more.

    Construction workforce accommodation: We’ve closed the EOI process for potential sites for our construction workforce accommodation facility. We’re now reviewing submissions and will finish by the end of November. For more information on planning for a future construction workforce visit, head here.

    Chatting with the community: Our team enjoy meeting the community and talking about the project. Keep an eye on this page for opportunities in 2025 to chat with us and ask your questions about the planned pumped hydro project at Cethana.

  • Project update - October

    supporting image

    Have your say: Our community survey is out now. We’re keen to hear what you have to say about the Cethana project. Click here to let us know your thoughts. You’ll get the chance to win a prize - one of five $100 gift vouchers! Terms and conditions apply and you can find those here.

    Housing a future construction workforce: We are progressing our planning for how we will deliver a future pumped hydro project at Cethana. This includes planning for accommodating a construction workforce should the project go ahead. Cethana is a major infrastructure project and will require a large workforce. We expect that around 350+ workers will need purpose-built accommodation close to site.

    To find out more about how we are planning for a suitable accommodation facility, follow this link.

  • Project update - September

    supporting image

    Project update - September

    Have your say

    Our community survey is out now. We’re keen to hear what you have to say about the Cethana project. Click here to let us know your thoughts. You’ll get the chance to win a prize - one of five $100 gift vouchers! Terms and conditions apply and you can find those here.

    Claude Road Markets

    Thanks to everyone who stopped by to say hi at the Markets. Our team enjoyed chatting about the project and answering your questions. We'll see you there again in December!

    Kentish Men’s Shed

    This fantastic group are working on improving our 3D model of the Mersey-Forth area. The team are building a new cover and stand for the model.

    We always get lots of interest in our 3D model and the cover and stand will help make it more portable and durable.

    Image: Our team of Bronnie, Gina and Bree are pictured with Cr Terry Hughes and Men’s Shed member Paul Robinson.