Tasmania has backed federal government energy policy it believes will help the state strengthen its position as Australia's renewable energy battery.
State and territory energy ministers will meet in Canberra on Friday to discuss the coalition's National Energy Guarantee (NEG), aimed at reducing household power costs by up to $550 a year and setting targets to cut greenhouse emissions.
"This is a once-in-a-generation opportunity for our state," Tasmanian Premier Will Hodgman said on Wednesday.
"We are as a government very determined to ensure that Tasmanians are paying lower power prices."
Queensland, the ACT and Victoria have questioned the policy, with the latter wanting emission reduction targets set more frequently and by regulation rather than legislation.
Tasmanian Energy Minister Guy Barnett said he strongly supports the NEG and will vote for it as it stands.
The Liberal government wants the island state to be 100 per cent self-sufficient in renewable energy generation by 2022.
Mr Barnett said the NEG pushes the case for a second Bass Strait interconnector between Tasmania and the mainland, as well as further investment in the state's wind and hydro technology projects.
Mr Barnett accused the Labor Victorian government of playing politics with the policy and urged all states and territories to jump on board.
"What is at risk is lower power prices, not just in Victoria, but across the country," he added.
The state's peak business body supports the NEG.
"A second interconnector across Bass Strait will potentially unlock pumped hydro projects and major wind farm developments," Tasmanian Chamber of Commerce and Industry CEO Michael Bailey said.
