Revelations this week show how desperate Tasmania’s energy situation is.

Reports say hydro-electric dam operator Hydro Tasmania considered draining the iconic Lake Pedder below its minimum operating level.

With Tasmania's energy crisis getting worse by the day, Hydro has told ABC reporters that it looked at the possibility of taking additional water from Lake Pedder to fill the power gap.

Lake Pedder was flooded to create a dam in 1972 despite intense opposition from the Greens, in what was one of the Australian conservationists’ first real fights.

Many still want the lake drained and restored to its original condition, at it appears that Hydro Tasmania was willing to help.

“Hydro Tasmania has considered a range of contingencies as part of ensuring energy supply in Tasmania,” a spokesperson said in a statement to the media.

“Accessing additional water below normal minimum operating level from Lake Pedder was one of those potential contingencies.”

While Hydro decided that drawing additional water from Lake Pedder would take too long, the idea remains on the table.

“This would involve a complex process, and working through that would take some time, likely months,” he said.

“We continue to investigate this option in case it becomes something we wish to explore at a later date.”

Tasmania’s Energy Minister Matthew Groom says it is not a serious option right now, as the government is busily installing a system of diesel generators to fill demand.

Energy analyst Marc White said the lakes that feed the Gordon power station - Lake Pedder and Lake Gordon – could do the job.

“The Lake Pedder-Gordon system is the second largest in the state after the Great Lake system, and it's actually capable of doing about 40 per cent of the state's needs,” he told reporters.

The idea of draining the lake has been welcomed by Greens senator Nick McKim, who sees it as an opportunity for restoration.

“If Hydro is going to assess the feasibility of the doing that the terms of reference of that study should be broadened to make sure that we consider all of the opportunities for Tasmania in terms of restoring one of the world's great wilderness jewels,” he told the ABC.

It is just over twenty years since a federal inquiry found it was technically feasible, but too expensive.

Senator McKim wants the Government to keep an open mind.