The cost of the Marinus Link Bass Strait power cable project is expected to rise even further, according to a letter sent by the government to the federal government last month.
The project, originally estimated to cost between $3.1 billion and $3.8 billion, has experienced a ‘material increase’ in price, although the exact figures were redacted from the public version of the letter which was tabled in parliament on Tuesday.
The letter also said that further cost increases are likely and there is a possibility of delay should the project proceed.
Suppliers are seeking terms and commitments that are inconsistent with progressing towards a Final Investment Decision in December 2024, according to the letter.
The Marinus Link project would see two 1500-megawatt power cables and a data link built under the Bass Strait.
Despite the rising costs and the likelihood of further increases, Premier Jeremy Rockliff still supports the project but warns that it does not make sense for Tasmania at “any price”.
“For the right price, Marinus Link is an important project which will help boost additional renewable energy development in Tasmania and support growth in business and industry,” the Premier said on Friday.
