Geothermal Energy Tasmania West Coast, a subsidiary of Allegiance Minerals, has been granted a special exploration licence of 2205 square kilometres over the Pieman–Arthur River area in the state's west.
The second licence has been granted to Geopower for 4892 square kilometres in the north-east.
"We [Tasmania] are seen as an attractive prospect because we have favourable geological conditions, and access to the national electricity grid through the Basslink cable," said Labor member for Braddon, Bryan Green.
The Basslink underwater power cable linking Tasmania to the Victorian electricity grid was completed in April last year, mainly with the view of accessing the state's abundant hydro-electricity.
"Hot dry rock geothermal power is ideal for base load generation. A successful outcome may result in a very large, new source of energy that could be extracted with minimal environmental impact or greenhouse emissions," said Green.
Geothermal Energy Tasmania's exploration will be directed towards finding and evaluating hot dry rocks from which energy can be extracted, ultimately as electricity. It will spend $350,000 on exploration over the next two years.
Geopower intends to explore opportunities in Tasmania's north-east and to investigate the potential for shallow warm water systems. Successful low temperature turbine technology can operate using water at 60-70 degrees C.
It will spend $558,00 over the first two years and will include geophysical and groundwater surveys and the drilling of at least five holes.
Another geothermal hopeful with existing Tasmanian acreage is KUTh Energy, which was due to list on the ASX this week.
