Today, the Tasmanian and Australian Governments have come to a historic agreement to deliver Marinus Link and Battery of the Nation.

This is a significant agreement for a clean energy highway, helping to reduce emissions, deliver reliable and affordable energy for consumers, and bolster Tasmania’s economy through new jobs and investment.

Today’s announcement provides an additional $75 million in Commonwealth funding which will support the Marinus Link project to a Final Investment Decision in December 2024 - this funding will be matched by the State in a true partnership.

Marinus Link is currently progressing through the Design and Approval phase with support from the Australian and Tasmanian Governments, with construction expected to commence following the Final Investment Decision.

The Federal Government is also providing $65 million towards the Tarraleah power station redevelopment, which will allow for the progression of upgrade works to commence ahead of a Final Investment Decision to be taken on this $700 million project.

Hydro Tasmania will also provide up to $58 million in funding to the early works on Tarraleah in addition to the Commonwealth contribution, bringing the total Tasmanian investment to up to $133 million. This funding is in addition to significant prior financial commitments from both Governments to these critical energy projects.

It is expected that beyond the Final Investment Decision on Marinus Link, there will be significant private sector interest in funding the project given its national significance and opportunity, with the Australian Government also having the option to finance the project.

Importantly, the Australian and Tasmanian Governments have agreed to work together to submit a cost allocation rule change to the Australian Energy Market Commission (AEMC) for Marinus Link.

This is an important step to ensure interconnector pricing and cost allocation to those jurisdictions that would benefit from Marinus and access Tasmania’s low-cost renewable generation.

These projects will put downward pressure on power prices, deliver a cleaner world and provide further energy security for our State, not to mention the economic impact delivered through thousands of new jobs.

We would like to acknowledge today the Morrison Coalition Government for its support and collaboration in this game-changing infrastructure, that will underpin Tasmania’s continued leadership in renewable energy.