Tasmania is moving a step closer to becoming the "battery of the nation" with more than a dozen potential sites identified for pumped hydro-energy storage.
Federal Energy Minister Josh Frydenberg says the sites on eight lakes have been identified as having "high potential" and could create up to 3000 jobs and $5 billion of investment in regional areas over the next 15 years.
The 14 sites are based on eight lakes in Tasmania's central highlands, north and west coasts.
Combined they could provide up to 4800 megawatts of electricity.
It's likely those sites will be reduced even further to focus on 2500 megawatts, which would double Tasmania's current capabilities, Mr Frydenberg told Tasmania Talks local radio on Wednesday.
The narrower list of sites will be reduced through a 12-month feasibility study, surveying, market modelling and identifying environmental and social impacts.
With the announcement, the case for a second power interconnector between the island state and the mainland "is a good one", Mr Frydenberg says.
The locations are clustered around existing Hydro Tasmania sites, which the company expects will assist with the speed and cost of construction and mean progress can begin in the coming months.
Chief executive Steve Davy says doubling Tasmania's clean energy production would create a surplus to support the mainland.
"That's crucial to replace the coal power that's being phased out," he said.
Premier Will Hodgman sees pumped hydro as this generation's hydro-electric development and believes it will cement Tasmania as Australia's "clean, reliable and affordable energy powerhouse".
THE SITES ARE:
* Lake Cethana, Mersey-Forth - five options
* Lake Parangana, Mersey-Forth - one option
* Lake Rowallan, Mersey-Forth - one option
* Lake Murchison, West Coast - two options
* Lake Margaret, West Coast - two options
* Lake Rosebery, West Coast - one option
* Yingina/Great Lake, Poatina - one option
* Lake Echo, Central Highlands - one option.
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