The Australian, Tasmanian and Victorian governments have reached a funding agreement to build the 1,500 MW bi-directional Marinus Link interconnector between Victoria and Tasmania.
The Australian government funding is part of the $20 billion Rewiring the Nation plan to transform the country’s electricity grid.
The agreement formalizes the joint ownership of Marinus Link between the Australian, Victorian and Tasmanian governments.
According to Premier of Tasmania Jeremy Rockliff, this low-cost financing from Rewiring the Nation will reduce the annual cost of Project Marinus for electricity customers by up to half.
“By working together, we have been able to achieve a solution that will see, once Marinus Link is built, Tasmanian customers to pay no more than 15 per cent of estimated total project costs across both the Marinus Link and North-West Transmission Developments,” Rockliff said.
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Australia can and should be a renewable energy superpower. Today we’re announcing a joint investment with the Tasmanian Government that takes us one step closer to that. It’s called Marinus Link. pic.twitter.com/QEU8WPp5Im
For customers of the National Electricity Market (NEM) including Victoria, Tasmania, New South Wales, Queensland and South Australia, the projected savings on wholesale power costs are up to $103 each year.
“Delivering Marinus Link, and unlocking further development of renewables, enables plentiful clean energy supply for the growth of new and existing business and industry right here in Tasmania. We will stay fully self-sufficient in clean, renewable energy,” said Marinus Link Board Chair Samantha Hogg .
“Marinus Link unlocks new clean energy projects in both Tasmania and Victoria, creating regional jobs for decades to come. Together with the North West Transmission Developments (NWTD), Marinus Link will deliver 2,800 direct and indirect jobs, and a further $2.9 billion of economic benefits in Tasmania and Victoria.”
The final investment decision (FID) is expected in late 2024.
Marinus Link is expected to unlock a further $7 billion in wind, solar and hydro developments and firm-up other renewable energy projects.
It includes approximately 255 kilometers of undersea HVDC cabling, around 90 kilometers of underground HVDC cabling and converter stations at each end in Tasmania and Victoria.
Marinus Link Pty Ltd, a subsidiary of TasNetworks, is progressing the design and approvals stages.
The first 750 MW stage is anticipated to be built and operating from mid-2028 and the second 750 MW stage from mid-2030.