Joint media release: Marinus Link reaches financial close, connecting Tasmania’s renewables to the world

The Hon Chris Bowen MP, Minister for Climate Change and Energy
The Hon Lily D'Ambrosio MP, Victorian Minister for Climate Action, Energy and Resources
The Hon Nick Duigan MP, Tasmanian Minister for Energy and Renewables

The Albanese Government is working with the Victorian and Tasmanian governments to secure our energy future.

Financial close has been reached for Stage 1 of Marinus Link, marking the final decision for one of the most important energy projects in our nation’s history.

Securing the $3.8bn funding from the Commonwealth's Clean Energy Finance Corporation, along with equity commitments from the Commonwealth, Tasmania and Victoria in August, gives the community, suppliers, contractors, and workers the certainty to get on with the job.

It will strengthen grid reliability in Victoria and other mainland states as part of the energy transition and provide long-term certainty to major industrial users in Tasmania by utilising the mainland’s cheap solar during the day and powering homes with Tasmanian hydro power at night.

Marinus Link is a nation-building project that sits at the heart of the Albanese Government’s plan for cheaper, cleaner and more reliable energy. Stage 1 will comprise of 750 megawatts of capacity – enough to power roughly 750,000 homes. It will create around 2,400 jobs and drive $2.4 billion of investment across Tasmania and Victoria.

Analysis released by Marinus Link Pty Ltd shows expected reductions in wholesale electricity prices that consumers across the states in NEM should see in their energy bills.

The construction of Marinus Link Stage 1 will enable future wholesale electricity prices to fall by an estimated $15 per MWh for Tasmania and $17 per MWh in Victoria on average compared to a no-Marinus Link scenario. The net effect is an expected reduction of $25 – $36 on average every year for typical household power bills in Tasmania and Victoria.

Stage 1 construction would commence in 2026 and is slated for completion in 2030.

Quotes attributable to Minister for Climate Change and Energy, Chris Bowen:

“Marinus Link is moving from plans on paper to work on the ground – creating thousands of jobs, boosting reliability and delivering clean power where and when it’s needed.

“The Albanese Government is delivering what the Opposition couldn’t – working together with states on energy policy focused on people not politics.

“Marinus Link will lead to economic benefits and job opportunities across the country, delivering cheaper, cleaner and reliable energy to and from Tasmania and the east coast of Australia.”

Quotes attributable to Victorian Minister for Energy and Resources, Lily D'Ambrosio:

“Our focus on helping Victorians with the cost of living and Marinus Link is an important part in our renewable energy future, strengthening national energy security and helping lower power prices.

“Marinus Link will create around 1,000 jobs per year of construction and play a critical role in powering Victorian homes and businesses with cheap renewable energy as our ageing coal-fired generators retire.

“We’re proud to work with the Commonwealth and Tasmanian Governments on Marinus Link and look forward to the benefits it will deliver for all Victorians.”

Quotes attributable to Tasmanian Minister for Energy and Renewables, Nick Duigan:

“Following the agreement of all three shareholder governments to proceed with Marinus Link with a positive Final Investment Decision, I welcome news the company has reached financial close.

“This is another important milestone for the project, which promises to deliver lower power prices, create more than 2,000 jobs in Tasmania, generate huge economic stimulus, and deliver intergenerational energy infrastructure.

“I look forward to seeing the project move forward to construction and to underpin confidence in new renewable energy generation in Tasmania.”