By PHILIP HOPKINS
THE $5 billion Marinus Link project, which will create a transmission cable connection between Tasmania and Victoria through the Latrobe Valley, will go ahead after Tasmania signed a deal with the federal government and Victoria.
Tasmania’s Premier, Jeremy Rockliff, said the Tasmanian government had secured a landmark agreement to progress the project.
“We have worked closely with the Australian and Victorian governments to ensure Marinus stacks up for Tasmanians,” Premier Rockliff said.
The project had been threatened by a political ‘stand-off’ in Tasmania after the recent state election.
Marinus Link is a 345-kilometre underground electricity and communications cable that will go under Bass Strait and underground through South Gippsland to the main Latrobe Valley and Victorian transmission line at the old Hazelwood power station site.
It is a 1500 megawatt interconnector project that will be delivered in two 750 MW stages. Essentially, Stage 1 is the first set of cables, and Stage 2 is the second set that will be delivered at a later date.
Marinus Link Pty Ltd (MLPL), which is jointly owned by the Commonwealth of Australia, Tasmania and Victoria, warmly welcomed the announcements by its shareholders that they had made a final investment decision to proceed with Stage 1 of Marinus Link. MLPL is responsible for progressing the Marinus Link interconnector project.
The decision confirms that there is a sound financial and economic investment case for proceeding with the construction phase of Marinus Link Stage 1, based on an assessment of forecast costs, revenue, associated benefits, and risks, the company says.
Construction is expected to start in 2026, subject to final environmental and regulatory approvals. Stage 1 is scheduled for completion by 2030.
Marinus Link is designed to give the mainland greater reciprocal access to Tasmania’s renewable energy resources. It is expected to provide substantial consumer benefits resulting from reductions to wholesale electricity prices across the National Electricity Market.
MLPL chief executive, Stephanie McGregor, said Marinus Link’s legacy had been cemented in Australia’s energy system, economy and climate aspirations.
“The coming together of three jurisdictions demonstrates Marinus Link’s truly national significance and benefit across the National Electricity Market, as well as directly to communities in Tasmania and Victoria,” Ms McGregor said.
“This marks our shareholders’ green light for the Marinus Link project.”
The Minister for Climate Change and Energy, Chris Bowen, said Marinus Link would bring more of Tasmania’s hydroelectricity to the mainland.
“It will deliver an economic boost to Tasmania and wider Australian industry during construction as well as having long lasting benefits by improving the transmission of cleaner reliable renewable energy,” he said.
Mr Rockliff said Marinus would deliver lower power prices, create more than 2000 jobs in Tasmania, generate huge economic stimulus, and deliver intergenerational energy infrastructure.
“It is estimated an additional $470 million will be added to the state’s bottom line each year on average, ensuring we can invest more in hospitals, schools, roads and keep power prices low,” he said.
“All these benefits to Tasmania are being delivered from Tasmania’s capped $103 million investment into Marinus.
“The agreement means the Australian government will now pay its share of the North West Transmission Development (NWTD), which is a crucial part of Project Marinus.”
The Minister for Energy and Renewables, Nick Duigan, said Project Marinus was critical to the state’s energy future.
“MARINUS provides a once-in-a-generation opportunity to create jobs, industries and grow our economy to support the lifestyle that Tasmanians expect and deserve,” Minister Duigan said.
“It will deliver the energy Tasmania needs to grow and for our communities to continue to electrify, while ensuring that our state reaps the benefits of our unique energy assets and their contribution to Australia’s renewable energy transition.”
Mr Duigan said a thorough and detailed analysis undertaken by RecFIT and Treasury, along with independent consultants, shows that Marinus will work to keep Tasmanian power prices low while creating an economic boon for the state.
“Economic stimulus, resulting from an additional investment of approximately $4.4 billion in Tasmania, is forecast, along with an increase in Hydro profits that will directly benefit our state’s bottom line,” he said.
“The benefits from Project Marinus will flow to every Tasmanian household through lower power prices and increased dividends from Hydro Tasmania.”
Ms McGregor said everyone who had worked on Marinus Link from conception to now deserves credit for this historic achievement and should be incredibly proud.
“Your conviction will change the course of a nation. MLPL would like to thank the many community members, organisations, and industry and business leaders who have openly engaged with our organisation and people throughout this journey,” she said.
“We will continue to engage regularly with the communities and landholders along the project alignment before construction commences, which is planned for 2026.”
