Graph of the Day: Tasmania’s switch back to fossil fuels

Published by

Tasmania’s switch back to fossil fuels has been one of the major talking points of this web-site, and the Australian energy industry over the past few months.

As we have documented, Tasmania – once the only state to be able to boast a 100 per cent renewable energy supply – has fallen to little more than 50 per cent renewables after a drop in dam levels to record low levels forced it to curtail its generation of hydro power.

Its plans to supplement its power needs with imports from Victoria (mostly brown coal generation) were stymied when the cable to the mainland broke in late December, forcing the island state to switch back on its main gas generator, and add up to 200MW of diesel.

These graphs, courtesy of Dylan McConnell and the team from the Melbourne Energy Institute, highlight that massive switch back to fossil fuels.

The first shows only local fossil fuel generation, with a few bouts of peaking plant (gas OCGT , or open cycle gas generation) before the New Year, followed by large amounts of its Tamar Valley combined cycle gas plant, and supplemented by open cycle or peaking gas.

This has largely been responsible for the surge in wholesale electricity prices to around $260/MWh to $300/MWh – compared with Tasmania’s normal prices of around $40/MWh.

Last week, the first of the 200MW of diesel plants was switched on, the 24MW Catagunya diesel generator. Another two diesel plants should start producing soon: the Meadowbank diesel generator (also 24MW), and the George Town Diesel Generator (30MW). These will likely push prices even higher.

This next graph shows all Tasmanian generation – before and after the loss of BassLink. The loss of the cable forced Hydro Tasmania to quickly lift its hydro output, despite falling dam levels, and then to switch on the gas and diesel generators. The 310MW of wind generation, in green, has remained consistent with capacity factors of between 35 per cent and 39.5 per cent from the two major wind farms, Woolnorth and Musselroe, according to separate data from Green Energy Markets.

 

 

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

Giles Parkinson

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

Share
Published by

Recent Posts

Anatomy of a renewable finance deal: Developer lands equity for state’s largest solar-battery hybrid

Equity raising and debt funding pitch from listed company provides rare insight into the mechanics…

7 June 2026

“Significant milestone:” Off-grid mine runs 155 consecutive hours on 100 pct renewables and engines off

Off-grid gold mine achieves 155 consecutive hours of running on 100 pct renewables, with "engines…

6 June 2026

Regulator drafts new retail energy guidelines in push for “honest and fair” consumer experience

Regulator seeks feedback on range of updates to retailer guidelines, following a series of market…

5 June 2026

CATL launches world’s largest energy storage testbed, starts mass production of sodium-ion batteries

CATL launches world’s biggest open-source energy storage testing platform, as it starts mass production of…

5 June 2026

“Worse, not better:” Developers paint grim picture of wind energy economics – even with CIS support

The economics of building new wind farms in Australia is "getting worse, not better," project…

5 June 2026

Transformer repair allows Australia’s most powerful battery to reach full storage capacity

Repairs to one of its three transformers allows Australia's most powerful battery to reach full…

5 June 2026