Energy regulator gives verdict on Project Marinus

Project Marinus, Tasmania and Victoria’s planned energy and communications upgrade, has taken another step forward after being cleared by the Australian Energy Regulator (AER).

Project Marinus encompasses Marinus Link, the subsea interconnector between Tasmania and Victoria, and the North West Transmission Developments (NWTD) — TasNetworks’ major upgrade to the Tasmania’s electricity transmission network.

After nearly 10 years of analysis and consultation, the AER published its final decisions on construction costs for Stage 1 of both Marinus Link and NWTD. The regulator concluded that Tasmanians and Victorians will be better off with investment in these national infrastructure projects.

Marinus Link Pty Ltd CEO Stephanie McGregor said the AER’s decision bookended the project’s assessment and planning phase, paving the way for full construction.

“We thank the AER for recognising our discipline in managing the project’s construction costs on behalf of electricity consumers,” McGregor said.

“Our role now, as a regulated company and the custodians of national energy infrastructure, is to deliver efficiently, responsibly, and ensure the benefits are enduring for all Tasmanians and Victorians.”

With preparatory works already underway across the project footprint, McGregor said this final decision gave Marinus Link the confidence to take construction into full swing later this year.

The AER is responsible for ensuring energy consumers have access to a reliable and secure market and that they pay no more than necessary for energy to their homes and businesses. The organisation achieves this by setting the maximum amount of revenue that monopoly electricity networks and natural gas pipelines can earn from consumers.

TasNetworks CEO Seán Mc Goldrick said the decision was reflective of the state-owned company’s work in ensuring the NWTD costs are prudent and efficient.

“This outcome underscores TasNetworks’ efforts to keep NWTD construction costs well-managed at a time when cost-of-living pressures have never been higher for Tasmanian communities and industry,” Mc Goldrick said.

“The AER’s approval provides revenue certainty and is an important step in reaching financial close and commencing construction in the coming months.

“We continue to finalise concessional finance arrangements with the Clean Energy Finance Corporation, which will significantly reduce the pricing impacts of the project on Tasmanian electricity consumers.”

Late last year, Project Marinus Stage 1 achieved ‘anticipated’ status in the Australian Energy Market Operator’s national grid plan, a move that acknowledged the project’s importance in building a reliable, affordable and low-emissions grid.

Image caption: Illustration of cable crossing shore from Heybridge, Tasmania. Courtesy of Marinus Link Pty Ltd.