The Tasmanian Government has signed a partnership agreement with the Australian Government to push forward development of the Marinus Link interconnector.
This partnership addresses critical matters relating to the financing of the project and provides a clear pathway for Marinus Link to reach Final Investment Decision in late 2024.
The agreement defines the shared ownership of the interconnector, ensures project cost sharing arrangements between the Commonwealth, Tasmania and Victoria and will ultimately lower energy bills for Tasmanians.
“This is a milestone for Australia’s energy transition, lower power prices, emissions reduction and jobs creation,” Marinus Link Board Chair Samantha Hogg said.
The proposed route for Marinus Link will run from North West Tasmania to the Latrobe Valley in Victoria. Image credit: Marinus Link
Marinus Link
Marinus Link is a 1,500MW undersea and underground electricity connection to link Tasmania and Victoria.
It is supported by over 240km of transmission developments in North West Tasmania. Collectively, these projects are known as Project Marinus.
Marinus Link aims to unlock Tasmania’s renewable energy and storage resources to deliver clean energy for customers in Australia’s wholesale electricity market, the National Electricity Market (NEM).
The project is designed to strengthen Tasmania’s energy security and develop on-island renewable energy resources.
According to a release from Jeremy Rockliff, premier, and Guy Barnett, minister for state development, construction and housing, Tasmanian government, the Marinus Link is “crucial to deliver Tasmania’s 200% renewable energy target…
“Marinus Link is a critical enabler for green hydrogen and other energy intensive industries being established in the State and the further expansion of our existing industrial load.”
Barnett added that the Marinus Link project will create 1400 jobs in Tasmania, facilitate AUS$7 billion (US$4.4 billion) in additional economic activity to the State, and deliver reductions of at least 140 million tonnes of CO2 by 2050.
Marinus Link CEO Bess Clark commented on the agreement: “The project has been identified by the market operator as urgently required and today’s announcement provides the commercial framework to see the project progress through to operation.
“Marinus Link will ensure long-term energy security and provide Tasmanians with a stronger, more resilient grid.
“This will put downward pressure on Tasmanian power prices, making household power bills lower than they would otherwise be without Marinus Link. It will also support affordable and reliable supply for Victorians, as coal generation continues to retire.”
Electricity generation in Tasmania is dominated by hydro power, which supplies around 80% of the state’s power.
Electricity generation in Victoria has traditionally been concentrated in the LaTrobe Valley, with large coal-fired power stations and some gas plants supplying the main load centre of Melbourne. Power has also been supplied by the Snowy hydro scheme in the north east, plus two wind farms on the southern coast.
