Financial close has been secured for Stage 1 of the Marinus Link project, with the federal government working alongside the Victorian and Tasmanian governments to advance what has been described as one of the most important energy projects in Australia’s history.
The $3.8 billion project reached its final investment decision in August, backed by financing from the Clean Energy Finance Corporation and equity commitments from the Commonwealth, Tasmanian and Victorian governments.
The milestone provides certainty for contractors, suppliers, and communities to progress with work ahead of construction starting in 2026.
Stage 1 of Marinus Link will deliver 750 megawatts of transmission capacity – enough to supply around 750,000 homes – linking renewable generation between Tasmania and Victoria.
It is expected to create about 2,400 jobs and drive $2.4 billion in investment across the two states.
The interconnector will play a critical role in the national energy transition by improving grid reliability on the mainland while giving major industrial users in Tasmania access to affordable solar during the day and Tasmanian hydro power at night.
Analysis from Marinus Link Pty Ltd projects that future wholesale electricity prices will fall by an average of $15 per MWh in Tasmania and $17 per MWh in Victoria compared to a no-link scenario.
These savings are forecast to lower household bills by $25 to $36 annually in both states.
Stage 1 is scheduled for completion in 2030.
Minister for Climate Change and Energy, Chris Bowen, said the project symbolised a decisive step forward.
“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,” said Bowen.
“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.”
Victorian Minister for Energy and Resources, Lily D’Ambrosio, said the project was central to the state’s clean energy future.
“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,” said D’Ambrosio.
“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.
Tasmanian Minister for Energy and Renewables, Nick Duigan, said the financial close was a key step in realising the state’s renewable energy ambitions.
“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,” said Duigan.
“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.”
