Fire destroys Tungatinah Power Station, Tasmania's energy network deemed secure

Fifth-largest hydro station inoperable but reduced demand and backup generators expected to prevent supply issues

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By LineZotpaper

Published3 September 2026

Read Time2 min

A fire gutted Tungatinah Power Station in Tasmania's Central Highlands overnight Wednesday, destroying the fifth-largest hydroelectric facility in the state, but officials said the network remains secure due to lower industrial demand and contingency plans including the Tamar Valley gas generator.

Emergency services were called to the Tungatinah Power Station about 9pm on Wednesday night, according to ABC News. The blaze was brought under control but the building is now just a shell and the station is non-operational.

Tungatinah contributes about 5 per cent of the state's energy, with a capacity of 142.5 megawatts (MW), making it Tasmania's fifth-largest hydro power station. It is dwarfed by the 432MW Gordon Power Station, the largest of the state's 30 stations.

Both Hydro Tasmania and network operator TasNetworks have confirmed the power network is secure. TasNetworks acting CEO Renee Anderson said the transmission network was "designed to withstand an incident like this." While power supply to around 300 customers in the area has been impacted, none of Tasmania's major industrials have been affected.

The recent closure of the Liberty Bell Bay manganese smelter and the Nyrstar zinc smelter running at lower capacity have reduced energy demand in Tasmania. There is also the 250MW Basslink cable available to import energy.

Hydro Tasmania CEO Rachel Watson said the utility is looking at contingency plans, including the Tamar Valley Power Station's gas generator, which has a capacity of 342MW and is expected to be up and running by the end of the week. "Even before it gets back, we're very confident that we've got sufficient generation capacity running and ready in the state," she said, noting it had already been running at times over winter.

According to the openNEM website, Tungatinah contributed around 7.5 per cent of Tasmania's energy over the past year.

An investigation into the cause of the fire is expected to follow.

Analysis

Why This Matters

Tasmania relies heavily on hydroelectricity; the loss of a major station tests network resilience.
The incident highlights the importance of backup generation and interconnectors like Basslink.
Reduced industrial demand cushioned the impact, but a similar event during peak winter could strain supply.

Background

Tungatinah Power Station was built circa 1953 and is one of 30 hydro stations in Tasmania. The state's energy mix has shifted recently with the closure of the Liberty Bell Bay manganese smelter and reduced output from the Nyrstar zinc smelter, lowering overall demand. The Basslink undersea cable provides a connection to the mainland grid. The Tamar Valley gas generator is a key reserve asset.

Key Perspectives

TasNetworks: Acting CEO Renee Anderson stressed the transmission network is designed to handle such outages. The network operator sees the incident as a manageable contingency. Hydro Tasmania: CEO Rachel Watson expressed confidence in existing and soon-to-be-restored generation capacity, emphasising that the gas generator will provide an additional buffer. Critics/Skeptics: No direct criticism has been reported. However, the fire raises questions about the vulnerability of aging hydro infrastructure and the adequacy of emergency response procedures.

What to Watch

The speed of bringing the Tamar Valley gas generator online by the end of the week.
Findings from the investigation into the fire's cause.
Any impact on energy prices or calls for accelerated investment in backup capacity.

Sources

Concerns over power station fire on Tasmania's power network — Just In