Hydro Tasmania will soon start work on developing a "Hybrid Energy Hub" on Flinders Island that will significantly increase renewable energy use on the island and reduce the use and importation of diesel.
The project involves the development of a portable hybrid renewable energy solution that has the potential to drive down the cost of delivering electricity in remote locations.
Hydro Tasmania will work closely with various Tasmanian manufacturers to develop and test this technology.
If commercialised the technology has the potential to be exported around the world for use in other remote areas such as in the mining sector or in disaster relief situations. This could result in more manufacturing jobs in Tasmania.
The Flinders Island Hub project is due for completion in November 2016.
The $12.8 million project has received support from the Australian Renewable Energy Agency (ARENA) with a grant of up to $5.5 million.