Tasmania does not have enough energy generation to expand industries, transition from gas and shift to electric cars, the boss of Australia’s largest renewable energy generator has warned.

The island state prides itself on being self-sufficient in 100 per cent renewable energy – hydro-electricity supplemented by wind – and is pitching a plan to become “the battery of the nation”.

However, Hydro Tasmania chief executive Ian Brooksbank told The Australian simply providing Tasmania’s own future needs would require new generation, most likely from wind.

“For future demand, whether it’s electrification of the economy in terms of residents degasifying cooking, heating and driving electrical cars, or industry converting its gas and coal processes to some form of electro-boilers, there will need to be an expansion of the renewable energy generation in the state,” Mr Brooksbank said.

Major industrial users have ­reported being unable to secure large increases in energy supply from Hydro Tasmania, but the government has rejected claims by business groups and the Labor opposition of an energy crisis.

Mr Brooksbank said the state’s current needs could be met, but he confirmed industries seeking 50MW or more would have to wait for new generation. “In an average year we receive about 9000GwH of energy in the form of rain (in hydro dams), and state demand is nudging 11,000GwH,” he said.

“The difference is made up by the wind farms and the ability to trade or to pass energy across (undersea power cable) Basslink.

“In an average year of average rainfall and average wind, we’re neither importing nor exporting energy for energy security needs, so there is enough … in the system today to satisfy existing demand.

“We get approached by all organisations that want a large amount of power … they all know that hydro is the source of firming and that new variable renewable generation, predominantly wind turbines, will be the source of the energy that they need.”

Mr Brooksbank played down the prospect of industry – including the fledgling green hydrogen sector – being held back by a lack of additional power supply.

“An existing consumer like a major industrial (has) a longer path time to get from burning gas to something consuming electricity,” he said. “The time frames they are talking about to us seem to sit quite nicely with the time frames for wind development in the majority of cases.”

Mr Brooksbank confirmed one exception was the Boyer Norske Skog paper mill, northwest of Hobart, which has reported being unable to secure a further 50MW to run new electric boilers.

Labor energy spokesman Dean Winter said Norske Skog was just one of 10 companies told they could not access 50MW of additional power.

“That’s investment and jobs that can’t happen,” he told The Australian. “Major industrials have been the bedrock of Tasmania’s economy for decades. They want more power but they can’t get access to it at any price.

“Our historic investment in hydro-electric power should mean that Tasmania is in prime position to take advantage of the global push to renewable energy, but it’s taking too long to get approval for new projects.”

Mr Brooksbank also defended the troubled Marinus Link project, a proposed second cable under Bass Strait to allow Tasmania to develop and export more renewables to the mainland. Some energy analysts believe the $3bn-plus project does not stack up financially compared to expanded renewable generation and battery storage on the mainland.

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