Federal Government pledges $56 million towards second Basslink

The Federal Government has pledged big dollars to fast track a second Bass Strait electricity interconnector.

The Federal Government has pledged $56 million to fast track a second Bass Strait electricity interconnector.

Prime Minister Scott Morrison announced the funding as part of a major speech outlining the Coalition’s climate policy.

A feasability study released yesterday put the cost of the project at up to $3.1 billion and said the benefits would outweigh the costs “under some plausible circumstances”.

“Under some circumstances Marinus Link is likely to deliver positive economic worth in the mid-2030s,” the report said.

Mr Morrison said the interconnector would mean more affordable and reliable electricity for homes and businesses and the Government’s $56 million investment would accelerate the delivery of the Marinus Link.

“After a summer of blackouts, the interconnector will mean more reliable power at lower prices for homes and businesses in Tasmania and on the mainland,” Mr Morrison said.

“Tasmania has the potential to be Australia’s battery to keep the lights on and running costs down and we’ll be there backing them to get there.”

GOVERNMENT ENERGISED BY BATTERY OF THE NATIONAL BID

Federal Energy Minister Angus Taylor said about 400MW of available dispatchable generation could not currently be delivered to the mainland because of constraints on Basslink, the first Tasmania-Victoria interconnector.

“A second interconnector and new dispatchable generation and storage will help alleviate the significant supply and demand pressures we saw across the NEM over summer,” Mr Taylor said.

Repairs to the Basslink cable. Picture: SUPPLIED

Tasmanian Energy Minster Guy Barnett said a 1200MW interconnector would unlock new generation and storage in Tasmania, which could assist reliability and lower energy prices.

“This commitment is a clear acknowledgment of the importance of Tasmania’s energy solution and our status as the leading energy state — we have the potential to be the country’s Battery of the Nation.

“We know that Tasmania has what the rest of the nation needs and wants — low cost, reliable and clean energy in abundance.”

The additional funding builds on the $20 million already invested by the Australian and Tasmanian Governments, through the Australian Renewable Energy Agency and Tas Networks, into the initial feasibility report.

Comments on the study are open until March 29.

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