Marinus Link has been granted Australia’s first offshore transmission licence, the final Commonwealth approval needed before construction of the Bass Strait interconnector.
The licence was granted by federal assistant energy minister Josh Wilson under the Offshore Electricity Infrastructure Act.
It allows electricity to be transmitted through Commonwealth waters and provides protection over the subsea cable route until 2090.
Marinus Link Pty Ltd CEO Stephanie McGregor said it was one of the final permits ahead of construction.
“It is the first TIL granted under the Offshore Electricity Infrastructure Act 2021, the national regime designed to support offshore renewable energy and transmission infrastructure in Commonwealth waters,” McGregor said.
Stage one will be a 750-megawatt interconnector scheduled for completion in late 2030, running 255km under Bass Strait from Burnie to Waratah Bay and 90km underground through Gippsland to the Latrobe Valley.
Together with the North West Transmission Developments project, it is expected to create about 2,400 jobs and $2.4 billion of investment.
The federal government says the project will reduce average wholesale electricity prices by about $15 per megawatt hour in Tasmania and $17 in Victoria once operating.
It says that would translate to annual household bill reductions of about $25 to $36 in both states.
Wilson described the licence as a landmark moment.
“Marinus Link is a nation-building project, but it’s also a project with real benefits for Tasmanians and Victorians, helping put downward pressure on electricity prices while unlocking new investment in Australia’s clean energy future,” he said.
He said the connection worked both ways.
“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,” Wilson said.
Federal MP Anne Urquhart said the project would create long-term opportunities in the north-west.
“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,” Urquhart said.
She said the Tasmanian Clean Energy Centre of Excellence would help local people access the skills and training needed to take advantage of the opportunities.
The project has been delayed and reduced from two cables to one, with a second 750-megawatt link now an option for a later stage.
Marinus Link Pty Ltd is jointly owned by the Commonwealth, Tasmania and Victoria.
The company will now develop a management plan and undertake an engagement process including First Peoples, marine users, government agencies and coastal communities.
Preparatory works began this year, with construction to ramp up in coming months.
