The huge Marinus undersea power cable project will cross the Bass Strait. Image: Australian Renewable Energy Agency, Australian Government.
The Tasmanian Government has secured a deal to progress Project Marinus, an undersea power cable link, in a move it has characterised as a “landmark” agreement.
In what the government has classified as a “massive win” for Tasmania, an agreement has been struck with the Commonwealth to green-light the construction of the project, with almost half a billion dollars in additional benefits to the state.
“We have worked closely with the Australian and Victorian governments to ensure Marinus stacks up for Tasmanians,” Premier Jeremy Rockliff said.
“Marinus will 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 and roads and keep power prices low.”
These benefits will be delivered to Tasmania from a capped investment of $103 million by the state.
The agreement means that the Commonwealth will pay a portion of the North West Transmission Development (NWTD), a piece of infrastructure vital to the feasibility of Project Marinus.
The agreement features the following concessions and inclusions:
- Tasmanian taxpayers do not have to contribute further equity into the project while retaining a shareholder’s say in key decisions affecting Tasmanians
- Households and small businesses will pay lower power prices
- “Fairer” sharing of the costs of NWTD
- $346 million in grants to the state to develop the NWTD
- $650 million additional concessional financing for Tarraleah
- More than 7 gigawatts of private-sector energy investment to be unlocked
- Profit returns and economic benefits from hydro are to be protected.
Minister for Energy and Renewables Nick Duigan said: “Marinus provides a once-in-a-generation opportunity to create jobs and industries and grow our economy to support the lifestyle that Tasmanians expect and deserve.
“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.”
Analysis by Treasury indicates that Marinus will keep Tasmanian power prices low while creating significant economic benefits for the state.
Additional investment from the project is expected to be about $4.4 billion, forecast to benefit the state’s budget and economy.
