Hydro Tasmania ended the 2025-26 financial year with its highest June water storage levels since 2012, strengthening its position for the following year after two extremely dry financial years.
The company’s annual report, published on 28 October, highlighted the recovery alongside a A$284 million capital works programme across its hydropower and other infrastructure.
“Our water storages were at the highest level for June since 2012,” said chief executive Rachel Watson. “This result reflects the expertise and careful planning of our team, who strategically managed our storages to ensure we entered the new financial year in a good position.”
Despite improved water availability, restrictions on trading through the Basslink interconnector constrained financial performance. Hydro Tasmania reported an annual profit before fair value of A$2.6m and declared a A$1.6m dividend to the Tasmanian Government, alongside A$21m in other returns, including tax equivalent payments.
“The good news this year was that it rained after several years of low inflows,” Watson said. “While we had the water, our ability to deliver profits through trading was severely restricted because there was essentially a toll on the link for 12 months, which made it expensive to use.
“We focussed our efforts on the future, making good long-term decisions, building our water storages, and investing in our assets to ensure they deliver for Tasmanians for decades to come.”
Basslink became regulated on 1 July, with Watson saying the change had improved the business’s position entering the 2026-27 financial year: “The value of interconnection extends well beyond profits. It provides greater flexibility, improves system resilience and allows Tasmania to maximise the benefits of its renewable energy resources.”
Investment in the hydropower fleet included turbine upgrades and a new building and control room at Poatina Power Station, while a major upgrade at Lemonthyme Power Station reached its halfway point. Works also progressed at Gordon, Bastyan and Reece power stations.
The capital programme included replacement of the trash screen at Trevallyn Power Station, progress on the Edgar Dam upgrade and statewide dam safety assessments. Hydro Tasmania also commenced the first stage of procurement for the proposed redevelopment of Tarraleah.
More than A$160m was spent with local contractors and service providers during the year.
Poatina Power Station, where turbine upgrades and a new building and control room formed part of Hydro Tasmania’s A$284 million capital works programme in 2025-26. Image courtesy of Hydro Tasmania
