The federal government has granted Marinus Link Pty Ltd a licence to establish the Marinus Link, a new electricity connection between Tasmania and mainland Australia.
The licence is a milestone for the interconnector between Tasmania and Victoria, which is designed to provide higher two-way electricity capacity.
The government says the link will strengthen energy security and put downward pressure on electricity prices for households and businesses.
Marinus Link will be delivered in two stages.
Stage 1 is scheduled for completion in late 2030 and will comprise a 750-megawatt interconnector.
The interconnector will span 345 kilometres, running under Bass Strait from Burnie in Northwest Tasmania to Waratah Bay on Victoria’s south coast, then underground to the Latrobe Valley.
Together with the interdependent North West Transmission Developments project, collectively known as Project Marinus, the work is expected to create around 2,400 jobs and $2.4 billion of investment.
The link is intended to strengthen grid reliability in Victoria and other mainland states as part of the energy transition.
It is also designed to provide long-term certainty to major industrial users in Tasmania.
The arrangement would draw on mainland solar power during the day and supply homes with Tasmanian hydro power at night.
Analysis from Project Marinus shows the project is expected to reduce average wholesale electricity prices by around $15 per megawatt hour in Tasmania and $17 per megawatt hour in Victoria once it is operational.
For households, this is expected to translate into annual electricity bill reductions of around $25 to $36 in Tasmania and Victoria.
The licence follows environmental approval for Marinus Link in 2025 under the Environment Protection and Biodiversity Conservation Act.
Early works are continuing ahead of major construction.
Assistant Minister for Climate Change and Energy Josh Wilson said the connection would operate in both directions.
“This connection works both ways,” said Wilson.
“It will help Tasmania make the most of mainland solar and wind power while sharing its renewable energy with the mainland when it is needed most.”
Member for Braddon Anne Urquhart said the project would also have workforce impacts in the region.
“The project will support hundreds of local jobs during construction and create long-term economic opportunities by attracting investment in renewable energy and related industries,” said Urquhart.
The government has described Marinus Link as part of its investment in new transmission infrastructure.
The Tasmanian Clean Energy Centre of Excellence is expected to provide apprenticeships, traineeships and specialised training pathways for people in the region.
