Hydro Tasmania on the hunt for a new CEO amid political and renewable turmoil

Tasmanian utility Hydro Tasmania is on the hunt for a new CEO, following the announcement that the company’s current chief, Ian Brooksbank, will step down from the role in October.

Hydro Tasmania said on Thursday that the recruitment process for the new CEO would get underway in coming weeks to find a replacement for Brooksbank, who it says is moving into “semi-retirement” to spend more time with family.

The changing of the guard at the helm of the government-owned utility – which owns and operates the bulk of Tasmania’s hydroelectric assets, as well as retailer Momentum Energy and consultancy Entura – comes amid political turmoil in the state, with the state election on the weekend resulting in a hung parliament.

And while the incumbent Liberal Rockliff looks most likely to scrape together a government, with the support of some of the cross bench, political division over key issues including the island state’s energy future are unlikely to be ironed out easily.

In the lead-up to the election, Labor had pledged to pull Tasmania out of the funding for controversial Marinus Link interconnector project entirely and put money into a new state owned power company instead. And there is lingering controversy, and a looming court battle, over the future of the state’s biggest wind project.

Marinus Link, which will add a new interconnector between Tasmania and Victoria, is crucial to Tasmania’s Battery of the Nation initiative – which is being led by Hydro Tasmania and would see its pumped hydro projects provide energy storage capacity to the Australian main-land.

It has faced significant opposition extending beyond the state opposition, with critics claiming it would be more fiscally and environmentally sensible to firm electricity in Victoria by building batteries in that state, rather than a new, expensive transmission cable from Tasmania.

Indeed, significant cost blowouts in the undersea cable project prompted the Liberal government, last September, to negotiate a reduced stake of 17.7 per cent, and the ability to sell that stake to the Commonwealth – the project’s major stakeholder – on commissioning.

Cost blowouts also led the project to be pared back to a single 750 megawatt (MW) cable, leaving the way open for the original plan for a second cable to be built sometime in the future.

Brooksbank, who stepped in as acting CEO of Hydro Tas in September 2021, was formally appointed to the role the following July.

“Throughout my career in Australia’s energy industry I have never witnessed such a rapid rate of disruption and change as we are experiencing at the moment,” Brooksbank said at the time.

“We are on the cusp of the most critical transformation our industry has ever experienced, which brings great challenges but also great opportunities, especially for a clean energy business with such an incredible pioneering legacy.”

“I’m proud to take on the responsibility of leading Hydro Tasmania’s next chapter, that will see us make an even greater contribution to Tasmania and support a clean energy future for all Australians.”

Two years later, this responsibility will be handed over to someone else, alongside the task of navigating the commercial pivot the Rockliff government has flagged for the state utility.

Rockcliff in February promised to redraw the current ministerial charter to change Hydro Tasmania’s purpose from energy generation and sales to ensuring low power prices and local jobs.

“Over the past century, Hydro has been the cornerstone of Tasmania’s economic strength, driving the economy, investment and jobs,” Rockcliff said at the time.

“Our new Hydro charter will ensure that every single decision that Hydro makes is driven by delivering the lowest possible power prices for Tasmanians, and enabling economic growth and job creation right here in Tasmania.”

In a statement this week, Hydro Tas chair Richard Bolt, said Brooksbank had set a clear strategic path for the business during his time at the helm, “driving proposals for major new generation and storage projects, delivering strong financial results and championing a significant shift in culture.”

Brooksbank, whose long career in energy once saw him manage AGL’s Bayswater and Liddell Power Stations, said he was proud of the company’s record over the past few years.

“We’ve positioned the business to be at the forefront of the national transition to renewables, which has the potential to deliver enormous benefits to Tasmania and to Australia.

“The path ahead is very exciting, but it’s time for another leader to take the reins and drive what is an ambitious agenda. And it’s time for me to slow down and spend more time with my partner and my family. Communication technology is great these days, but it’s not the same.”