The Tasmanian government says the Battery of the Nation generation initiatives and the Marinus Link energy interconnector to the mainland will give Tasmania an extra revenue stream and put downward pressure on energy prices.

The government has been adamant Tasmania will only pay its fair share for what Energy Minister Guy Barnett described as nation building infrastructure.

The projects' benefits to Victoria were outlined in new analysis from Hydro Tasmania released on Wednesday.

Hydro said its How Battery of the Nation can contribute to Victoria's energy needs and objectives white paper showed how Tasmania could help Victoria cope with risks of early or unexpected coal plant retirement, such as high costs and unreliable supply, while helping Victoria's renewable energy ambitions.

Hydro chief executive Steve Davy said Victoria's cheapest options were wind and solar, but they were variable sources that needed "firming" to be reliable.

"Victoria will need to access significant energy storage to ensure they can meet their renewable energy targets while keeping the power system reliable," Mr Davy said.

"Tasmania has idle capacity waiting to be unlocked by market signals and delivered through the additional interconnection required by Battery of the Nation.

"As well, Tasmania also has significant potential for development of new, low-cost, long-duration pumped hydro storage, offering the firming Victoria's future energy mix requires.

"However, with change already under way, we need proactive support for interconnection through TasNetworks' Marinus Link project to get the electricity to where it's needed, along with the timely development of investment incentives to ensure supply is available when it's needed."

He said more interconnection between Victoria and Tasmania would help manage the energy transition.

"By working together, Victoria and Tasmania can facilitate a smooth transition to the clean, reliable power system of the future."

Mr Barnett said more than 200,000 Victorian homes and businesses had their power cut or limited last summer as electricity supply "buckled" in extreme heat.

"Tasmania played a key role in helping to keep the lights and air conditioners on in Victoria, delivering urgently needed power through the existing interconnector, Basslink," Mr Barnett said.

"Our Battery of the Nation pumped hydro plans, new wind farm projects and 1500 megawatt second interconnector (are) set to create 2400 new jobs and inject $6.5 billion into the Tasmanian economy over the coming years.

"Importantly, Tasmanians come first, and our Tasmania first energy policy is focused on delivering Tasmanian residents and businesses amongst the lowest regulated electricity prices in the nation."

He had previously said the government was focused on delivering THE lowest regulated energy prices in the nation, rather than "amongst the lowest".