FEDERAL BUDGET: Marinus Link to be ‘fast-tracked’ amid $250M for major transmission projects

A second energy link between Tasmania and the mainland will be “fast-tracked” under the federal budget – however a final decision on how the cable will be funded won’t be made until 2024.

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A SECOND energy link between Tasmania and the mainland will be “fast-tracked” under the federal budget – however a final decision on how the cable will be funded won’t be made until 2024.

Minister for Energy and Emissions Reduction Angus Taylor said the Marinus Link project would be included in a $250 million fund to accelerate major transmission projects.

The Project EnergyConnect transmission proposal in South Australia and VNI West transmission proposal in Victoria will also be covered by the fund.

“We will also establish a Special Purpose Vehicle to progress the delivery of the design and approval phase of the Marinus Link project to enable a financial investment decision by 2024. Unlocking new forms of energy generation in Tasmania is a priority for the Morrison Government,” Mr Taylor said.

A special purpose vehicle is a specific corporate entity established by the Commonwealth, which normally comprises a board and an executive.

Talking Point: Marinus not our salvation

The next step for the project will be finalising the cost – already estimated at $3.5 billion.

A business case last year for Project Marinus found that a 350km, 1500 megawatt cable would be both technically feasible and commercially viable.

It would enable Tasmania to deliver four times as much hydro, pumped hydro and wind energy directly into the national energy market as coal power stations shut down in coming years.

While heavily promoted by the Commonwealth and the Liberal state government as a game-changing project for Tasmania, the second Bass Strait cable has received a mixed response from stakeholders including the state’s major industrial energy users.

While a “cautious supporter” of Project Marinus, the Tasmanian Minerals and Energy Council has raised concerns about the financial viability of the project and, in the event the interconnector becomes a liability, who will pay.

TMEC also has questions around the technology to be used, and whether a device designed in 2020 can be seen as the lowest cost way to provide clean energy in 2040 or 2050.

Economists and energy experts have questioned the viability and value of a second cable.

Last year’s budget contained $56 million for a feasibility study for Marinus Link.

The state and federal government have estimated the project would create 3800 direct and indirect jobs during construction and deliver an economic stimulus of up to $7 billion predominantly in northwestern Tasmania and regional Victoria.