Cethana pumped hydro project

Hydro Tasmania has been investigating pumped hydro opportunities around the state, as part of our Battery of the Nation vision. Following an extensive options assessment, and previous community engagement, Lake Cethana in the Mersey-Forth scheme was identified as our preferred pumped hydro site. Pumped hydro will be an important part of the future electricity market because it can fill gaps in supply from wind and solar, which don’t generate all the time.

Project update - October

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.

Click on the image below to find more information about how we are planning for a suitable accommodation facility or follow this link.

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.

Project update - August

Geotechnical investigations: We've now completed our geotechnical investigations to find out more about the ground conditions at the upper storage site. The data from the investigations helps us to better understand the surface and underground conditions and the materials present at the site.

Environmental approvals

Our referral to the Commonwealth Government under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) has been made public and is now back with Government for review. You can view the documents and track progress through the EPBC Act Public Portal.

The EPBC referral will determine if the project needs a further formal assessment for potential impacts to what are termed ‘Matters of National Environmental Significance’ or MNES, under the EPBC Act.

Through our studies, we’ve identified that the construction and operation of the proposed pumped hydro scheme could impact on the following MNES:

  • Barbarea australis in the lower reaches of Bull Creek

  • habitat of the Tasmanian devil and eastern quoll.

We are working to minimise impacts on these matters and conditions may be applied to the project as part of its approvals. You can find out more about the EPBC process here.


What is the Cethana project?


From our investigations, we identified three top opportunities in the state for pumped hydro. These opportunities were at Lake Cethana and Lake Rowallan in the North-West and near Tribute Power Station on the West Coast. Between 2019 and 2020, detailed information was gathered and we assessed the suitability of each site for development based on a range of technical, environmental, social and economic factors. Engagement with the community 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 years with a construction workforce of approximately 300 people.

We are currently investigating options for housing the construction workforce. This is likely to include a mix of purpose-built workforce accommodation village and other accommodation types. We will be engaging further with the community and key stakeholders in relation to workforce accommodation arrangements.

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.

We have now lodged 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).

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 progress a range of specialist technical studies to understand potential project impacts and opportunities, we will be seeking community input to these studies.

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

What's next


Specialist studies

We’re looking into a range of technical areas to better understand the potential project impacts and opportunities, and as part of the regulatory approvals process. These studies include:

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

We will be seeking community input to these studies and the findings of these studies will be shared with communities as we progress.


We are here to listen. Post your questions below!



Hydro Tasmania has been investigating pumped hydro opportunities around the state, as part of our Battery of the Nation vision. Following an extensive options assessment, and previous community engagement, Lake Cethana in the Mersey-Forth scheme was identified as our preferred pumped hydro site. Pumped hydro will be an important part of the future electricity market because it can fill gaps in supply from wind and solar, which don’t generate all the time.

Project update - October

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.

Click on the image below to find more information about how we are planning for a suitable accommodation facility or follow this link.

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.

Project update - August

Geotechnical investigations: We've now completed our geotechnical investigations to find out more about the ground conditions at the upper storage site. The data from the investigations helps us to better understand the surface and underground conditions and the materials present at the site.

Environmental approvals

Our referral to the Commonwealth Government under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) has been made public and is now back with Government for review. You can view the documents and track progress through the EPBC Act Public Portal.

The EPBC referral will determine if the project needs a further formal assessment for potential impacts to what are termed ‘Matters of National Environmental Significance’ or MNES, under the EPBC Act.

Through our studies, we’ve identified that the construction and operation of the proposed pumped hydro scheme could impact on the following MNES:

  • Barbarea australis in the lower reaches of Bull Creek

  • habitat of the Tasmanian devil and eastern quoll.

We are working to minimise impacts on these matters and conditions may be applied to the project as part of its approvals. You can find out more about the EPBC process here.


What is the Cethana project?


From our investigations, we identified three top opportunities in the state for pumped hydro. These opportunities were at Lake Cethana and Lake Rowallan in the North-West and near Tribute Power Station on the West Coast. Between 2019 and 2020, detailed information was gathered and we assessed the suitability of each site for development based on a range of technical, environmental, social and economic factors. Engagement with the community 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 years with a construction workforce of approximately 300 people.

We are currently investigating options for housing the construction workforce. This is likely to include a mix of purpose-built workforce accommodation village and other accommodation types. We will be engaging further with the community and key stakeholders in relation to workforce accommodation arrangements.

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.

We have now lodged 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).

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 progress a range of specialist technical studies to understand potential project impacts and opportunities, we will be seeking community input to these studies.

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

What's next


Specialist studies

We’re looking into a range of technical areas to better understand the potential project impacts and opportunities, and as part of the regulatory approvals process. These studies include:

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

We will be seeking community input to these studies and the findings of these studies will be shared with communities as we progress.


We are here to listen. Post your questions below!



  • Tell us what you think in our community survey

    supporting image

    We're keen to hear your thoughts on the proposed Cethana project. Your feedback through our new community survey will help us understand how much awareness there is about the project and any issues you have (so that we can plan for how to avoid or minimise impacts).

    We have prizes! Complete the survey for your chance to win one of five $100 gift cards.

    You can find the survey here and we appreciate you taking the time to complete it!

    *Terms and conditions apply. Click here to read them.

  • Working with local businesses

    supporting image
    Thank you to the Kentish and Latrobe business community for a great evening of discussion about the proposed Cethana pumped hydro project. We shared information about the project, the development timeline and potential local business opportunities.

    Participants shared their business aspirations and aspirations for the community. Together, we explored the potential barriers to accessing project opportunities and brainstormed ways to support businesses.

    Stay tuned for more local engagement opportunities in the future. Thanks to Kaliba for hosting us!

  • Community input on Cethana pumped hydro welcomed

    supporting image

    Thank you to everyone who attended our community information sessions about the project. Sessions were held in and around Sheffield to update the community and hear from local residents. More than 80 people attended the five events and we also chatted with locals at the Claude Road Markets.

    The sessions were an opportunity for Hydro Tasmania to provide an update on what’s ahead for the project. Information was also shared on:

    • the role of pumped hydro in the electricity market
    • planning for local benefits sharing
    • how to plan for future workforce accommodation needs
    • environmental and social considerations.

    Our team answered questions from the community about workforce accommodation, employment opportunities, health services, managing traffic, environmental management, access to recreation areas, and project costs.

    If you missed out on the information sessions but would like to chat with the project team, please give Bronwyn a call on 0457 237 453.

  • Latest news

    Updates on the Cethana pumped hydro project will be posted here, as needed