New Tas energy plan will drive down power prices: Government

A new energy plan for Tasmania will result in lower power prices, the state's Energy Minister says.

The Government is inviting Tasmanians to have their say on its new draft energy strategy.

The draft promises to look at new opportunities for the state's existing energy assets, as well as ways to attract new businesses.

The Government plans to investigate a second Bass Strait interconnector and look at expanding hydro generation output by 10 per cent.

Energy Minister Matthew Groom said the strategy would drive down power prices but he could not nominate an amount.

"This is about a mindset shift, this is about recognising that the energy businesses are primarily there to deliver energy advantage to Tasmanians, and central to that will be the lowest possible power prices that are genuinely sustainable," he said.

"We saw power prices increase by more than 65 per cent over seven years.

"That's unacceptable and under this new strategic direction, it cannot happen again."

The strategy includes more work on encouraging competition, with the Government still open to selling Aurora Energy's customer book.

It also includes a commitment to investigate the potential of using forest residue for biofuel.

Public submissions are open until mid-February.