Tasmania is partnering with the Australian Renewable Energy Agency (ARENA) to begin work on a study for a second energy pipeline between the state and the mainland, creating new opportunities for renewables investment.

The pipeline across the Bass Strait would allow Tasmania to supply increased levels of renewable energy to Victoria, and encourage the development of more renewable energy generation, providing additional backup energy supplies for the National Electricity Market.

It comes the same day as the Coalition of Australian Governments gathers in Tasmania to discuss the National Energy Guarantee, which will set out measures to increase Australia's energy security, and is seeing pressure to include a greater percentage of renewable energy under its auspices.

Tasmania's major energy supplier Hydro Tasmania's chief executive Steve Davy said that as the east coast faces an energy crisis, the need for a second energy pipeline was only increasing.