This paper outlines a methodology to determine the amount of renewable energy that can be accommodated in a power system before adverse impacts such as over-voltage, over-loading and system instability occur. This value is commonly known as hosting capacity. This paper identifies when the transmission network local hosting capacity might be limited because of static and dynamic network limits. Thus, the proposed methodology can effectively be used in assessing new interconnection requests and provides an estimation of how much and where the new renewable generation can be located such that network upgrades are minimized. The proposed approach was developed as one of the components of the AUSTEn project, which was a three-year project to map Australia’s tidal energy resource in detail and to assess its economic feasibility and ability to contribute to the country’s energy needs. In order to demonstrate the effectiveness of the proposed approach, two wide area networks were developed in DIgSILENT PowerFactory based on actual Australian network data near two promising tidal resource sites. Then, the proposed approach was used to assess the local tidal hosting capacity. In addition, a complementary local hosting capacity analysis is provided to show the importance of future network upgrades on the locational hosting capacity.