Hydro's new town hunt

HYDRO Tasmania is seeking to acquire or lease land for a new workforce village and accommodation to support its proposed Cethana pumped hydro project. 

If the project goes ahead, it will likely include a mix of a purpose-built and modular accommodation for an estimated 350 workers needed at peak construction. 

A decision on whether the Cethana project will proceed is expected by early to mid-2026. 

Hydro is currently assessing the technical and commercial viability of the project at Cethana, about 20km southwest of Sheffield. 

It says the development will only progress if it proves to be a sound investment that benefits Tasmania. 

“Australia needs long-duration storage and Cethana is one of the most cost-competitive pumped hydro projects in the country,” Tammy Chu, Hydro Tasmania’s interim Executive General Manager of Construction said. 

If approved, the Cethana project is expected to generate substantial economic activity and industry growth during construction and provide flexible energy capacity. 

It also promises to enhance Hydro Tasmania’s profitability which Hydro says will bring revenue to the State Government. 

Ms Chu said Cethana would not become a permanent settlement similar to Poatina as it would only be needed for between six and eight years. 

Poatina was originally constructed in the 1960s to house the workforce of the Poatina Power Station, however, it evolved into a small community after Hydro sold the land to Fusion Australia, a Christian not-for-profit youth and community organisation in 1995. 

“Once construction is complete, it’s Hydro Tasmania’s intention to return the land to its original condition and look for options to repurpose some of the modular units for the benefit of the local community,” Ms Chu said. 

She added that construction at Cethana project would only start if a positive Final Investment Decision was reached and the accommodation would be used only in the construction phase. 

For now, Hydro Tasmania continues to engage with the community and key stakeholders to discuss the specifics of the workforce accommodation.