Three potential locations have been identified for pumped hydro power in Tasmania.
The sites at Lake Cethana and Lake Rowallan in the North West, and near Tribute Power Station on the West Coast will now undergo further assessment and community consultation.
They were selected from among 14 options as part of the ambitious Battery of the Nation project.
Energy Minister Guy Barnett has told Tasmania Talks, they're expecting a set location by the end of next year for development.
"It will take time. It's a $30 million investment so it's a big investment for us but we are confident and we wouldn't be doing it if we didn't think we've got the natural comparative advatage here in Tasmania to benefit all Tasmanians going forward," he said.
Mr. Barnett argues hydro power is long overdue.
"They do it in Canada, they do it in Europe. We should be doing it in Australia and Tasmania has 30 power stations. Our topography, our geography is brilliantly placed for pumped hydro. We have every opportunity to the battery of the nation because we're the renewable energy powerhouse."
The Tasmanian Government has promised 100 per cent self-sufficiency in renewable generation and to have the nation’s lowest regulated power prices by 2022.
Meanwhile, the Federal Government has committed $56 million to fast-track the Marinus Link - a second Bass Strait inerconnector to sell-on electricity to the mainland.