Labor asks who is going to pay for $3.5 billion power cable

Tasmania’s ambitious plan to sell its boundless renewable energy into mainland markets is pushing ahead. But there’s one big question that stands in the way >>

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LABOR has welcomed the go-ahead for the $3.5 billion Marinus Link power cables, but wants to know who will be picking up the bill.

The Australian Energy Market Operator has given the green light for the project.

The twin 750 megawatt cables are tipped to create up to 2800 jobs, mostly in regional Tasmania through a boom in renewable energy exports into mainland states.

But it is dependent on the government passing legislation for a renewable energy target and on sorting out who will pay for the project.

Energy Minister Guy Barnett wasn’t able to answer the second question yesterday.

“That will be decided in due course over time,” he said.

Shadow Energy Minister David O’Byrne said the cable can’t be built without someone to pay for it.

Shadow Energy Minister David O’Byrne said someone needs to put up the cash and questioned whether the responsibility will lay at the government’s feet.

“The Marinus Link project is a unique opportunity for Tasmania to contribute to the nation’s future power needs and create much-needed jobs for Tasmanians,” Mr O’Byrne said.

“But before it can proceed the State Government needs to answer some significant questions, chief of which is who will pay.

“It is not enough for the government to say it will only pay its fair share – without understanding who pays what, it’s the equivalent of a blank cheque, with Tasmanian taxpayers footing the bill.

Greens leader Cassy O’Connor shared Mr O’Byrne’s concerns.

“I think Tasmanians are asking the question: who will pay for this? How much will it cost? Who will own it and how will it affect our power prices?

Cassy O'Connor in Parliament. Picture: RICHARDJUPE

“At the moment, what we’re looking at is Guy Barnett’s mirage: a lot of talk, a lot of hype, no detail and huge question marks over the cost and who will pay.

The state and federal governments have contributed $56 million towards the design and approval process for Marinus Link so far.

Mr Barnett hailed the project’s potential to turn Tasmania into a renewable energy source for the nation — and the jobs it would generate.

“Marinus Link is a game-changer. It is national infrastructure and will deliver thousands of jobs, billions of investment, downward pressure on electricity prices and improved energy security, with benefits particularly in regional Tasmania,” he said.

Energy minister Guy Barnett and Premier Peter Gutwein delivering an update on the Marinus Link project. Picture: PATRICK GEE

“This link will unlock a mass of renewable energy projects in Tasmania because we have a world class wind resource, we have a world class water resource

“This is a major step forward for the nation-building and state building infrastructure.”

Premier Peter Gutwein hailed Marinus Link as “a sensational job-creating project for the state”.

There are hopes the first of the two cables which are part of the Marinus Link project can be completed as early as 2028-29.

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