By PHILIP HOPKINS

 

MARINUS Link, which aims to connect Victoria and Tasmania through a 345-kilometre electricity and communications cable to the Latrobe Valley, is “at risk” due to a political stand-off in Tasmania and concerns about its impact on power prices, according to The Australian newspaper.

The Australian reported on the weekend that the federal and state governments were ready to go ahead with the $5 billion Marinus Link, but Tasmania is struggling to make a final decision on the 750-Megawatt ‘Stage 1’ cable that was promised before July 31.

Marinus Link’s proposed 1500 MW undersea and underground electricity connection and communications link will provide access to 1500 MW of capacity from Tasmania, including pumped hydro storage to provide base-load electricity when needed in Victoria.

The underground cable will go through South Gippsland to join the main Latrobe Valley and Victorian transmission line at the old Hazelwood power station site.

The Tasmanian Liberal government is stuck in caretaker mode after the July 19 election and is negotiating its survival in minority with crossbenchers, some of whom oppose Marinus, The Australian reported.

The government is suppressing the final ‘whole of state’ business case received 10 weeks ago and is accused of breaching caretaker conventions by refusing to brief the Labor Party.

This has raised concerns that the link is at risk, with a window about to close on the purchase of cabling that, if missed, could kill off the project.

“There is real concern that the potentially transformative project may fall over,” the newspaper reported.

“Power-sharing talks with crossbenchers could take weeks to conclude, even after the final seats are determined by August 2.”

By the end of August, Marinus Link must “issue notice to proceed” or lose a 600 million Euro ($1.07bn) contract for supply of the 345km of cable with the Italy-based Prysmian Group.

The business case is believed to detail increases in power prices if Marinus Link goes ahead.

The Australian said last Thursday, Tasmania’s Premier, Jeremy Rockliff, gave conflicting statements on the project, saying Marinus “was a good deal for Tasmania” but he would not support it “if it is going to cost Tasmanian taxpayers more”.

“We need to ensure power prices do not go up,” he told The Australian.