Hydro Tasmania is Australia's largest producer of renewable energy and a leading advocate in the push for increased renewable energy generation both locally and nationally.

CEO Roy Adair welcomed the community engagement and awareness-raising of climate change issues by such groups as Climate Action Hobart. However, it was important the information being provided to the public was accurate, particularly around Basslink and emissions.

"Hydro Tasmania annually produces an average of 8700 GWh of electricity, nearly half of all of Australia's renewable energy and over two thirds of Tasmania's total energy consumption," Mr Adair said.

"We are seeking to ensure the optimal use of a scarce resource and support action on climate change and increasing the level of renewable energy generation in Tasmania and the rest of Australia. A price on carbon is essential to achieving this.

"Climate Action Hobart and those who are participating in today's rally may be surprised to learn that we agree on so many of the issues they are highlighting, particularly the urgent need for appropriate policy settings to develop further renewable energy.

"However, it is clear there is still some misunderstanding of the role of Basslink and the wider issues of Tasmanian generation and demand.

"Basslink plays a crucial role in enabling surplus renewable energy to be exported to the mainland while providing the capacity to import energy during times of drought."

Basslink was commissioned in 2005 to connect Tasmania to the National Electricity Market. The connector was crucial in ensuring security of electricity supply in Tasmania during the recent drought period. The drought really only abated in the first half of 2009. The period between October 2007 and May 2008 was the driest in terms of hydro storage for 75 years. Hydro storages dropped to below 20 per cent at the peak of the drought and having Basslink in place has helped them to recover since to be currently at just over 36 per cent, the highest they have been at this time of year for six years.

Mr Adair emphasised that Hydro Tasmania prudently manages both its waterresources and use of Basslink to ensure the value of the renewable energy isoptimised.

The emissions associated with the electricity that is transported across Basslink are generated at other power stations across Australia and not in Tasmania. This is consistent with national and international greenhouse accounting standards which clearly state that those generators are directly responsible for their emissions.

Mr Adair said Hydro Tasmania agreed that a price on carbon was crucial to reducing emissions across Australia’s energy sector, including the emissions from Basslink imports. This will also enhance the competitiveness and value of renewable energy generation.

Ultimately, all renewable energy, including hydro power, needs to be differentiated from emission-intensive fossil fuels.

Mr Adair said Hydro Tasmania continued to explore ways to increase its renewable energy generation while being a strong advocate for the policies necessary to support increased renewable energy generation in Tasmania and Australia.

"This includes the Federal Government's Renewable Energy Target and the need for a price on carbon – such as through an emissions trading scheme – which needs to be introduced as soon as possible. "

Mr Adair said Hydro Tasmania's door was always open to discuss these issues.

"We would welcome the opportunity to talk directly with groups such as Climate Action Hobart, listen to their concerns and outline our position," he said.

"It is important that an open dialogue occurs between all sectors of society on how to achieve this transition to increased production of renewable energy throughout Australia."

ends