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.

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(External link)

Project update - April

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.

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.


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(External link)



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!

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.

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(External link)

Project update - April

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.

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.


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(External link)



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!

Post your question!

We're here to provide an answer to your questions. Please get in touch.

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  • Where would I find employment opportunities for this project I’m a well experienced construction manager/ Area manager. My area of expertise is new underground mines globally. I now reside in wilmot transitioning into retirement.

    Jo Louw asked over 1 year ago

    Hi Jo - thanks for your question and your interest. All of our current vacancies are advertised through our Careers portal which can be accessed here - https://careers.pageuppeople.com/901/ht/en/listing(External link)