TasNetworks CEO says Tasmania should pay ‘next to nothing’ for $3.5 billion second Basslink cable

Tasmania will look to other states – and the Federal Government – to foot the bill for the largest infrastructure project in the state’s history.

The head of TasNetworks says Tasmania’s share of the cost of a second Basslink cable should be “next to nothing”.

A DECISION on who will foot the bill for the largest infrastructure project in the state’s history has not yet been made.

The business case for the $3.5 billion Marinus Link electricity connector was officially launched today.

It confirms that the 350km, 1500 megawatt twin cable between Burnie and the Latrobe Valley would be both technically feasible and commercially viable.

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TasNetworks CEO Lance Balcombe said the financing of the project had not yet been decided but he said Tasmania should bear only a minor part of additional generation and transmission costs as other states would enjoy the benefit of increased energy supply and security.

“I think a fair share is next to nothing,” he said.

“Ostensibly, all the benefits of this interconnector from [and] to the national market flow north.

“Obviously Tasmania gets the ensuing economic benefits, but from an energy market perspective all the benefits flow north.

“It’s beyond Victoria, the analysis we’ve done show the benefits flow into Victoria, South Australia, New South Wales and Queensland.”

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Energy Minister Guy Barnett. Picture: RICHARD JUPE

Energy Minister Guy Barnett said Tasmania was prepared to contribute to the project, but other states would quickly see the benefits.

“Let’s make it very clear, we should only pay our fair share and no more,” he said.

“This is going to benefit the national electricity market with downward pressure on prices because we have what the rest of the nation wants and needs — that’s low-cost, reliable, clean energy.”

He said the project would be a big boost for Tasmania’s energy industry and economy as a whole.

“This is the largest infrastructure development in Tasmania’s history by a long shot,” he said.

“It is certainly an opportunity that, as a government, we have every intention of grabbing hold of with both hands.

“This is very good news for Tasmania. It will deliver billions in investment in Tasmania. In fact, more than $7 billion of investment in the years ahead, and thousands of jobs.

“It confirms that Tasmania is the renewable energy powerhouse of Australia. It confirms that our plans to be the battery of the nation are realistic.”

Labor’s David O’Byrne said not knowing who would pay for the plan was not acceptable.

“We’ve got a massive project – it’s over $3 billion that will be need to be invested in the Marinus project,” he said..

“To put that in context that is slightly more than the current value of our transmission assets already on-island.

“This is a massive project and the Government can’t say who will pay, they can’t say how they will pay and you’ve got a Federal Government that is all at sea and divided on energy policy.”