The Clean Energy Finance Corporation has committed to the largest investment in its history, providing $3.8 billion for the Marinus Link electricity interconnector between Tasmania and Victoria.
The landmark financing has enabled Marinus Link Pty Ltd to achieve financial close and issue notices to proceed on its cable and converter contracts.
Marinus Link will allow two-way electricity exchange between Tasmania’s hydropower and wind developments with renewable energy generated in Victoria and NSW.
CEFC CEO Ian Learmonth said the organisation structured the finance to maximise benefits for consumers.
“As a specialist green energy investor, the CEFC is committed to using our capital to accelerate the delivery of nation-building projects of this scale,” Learmonth said.
The concessional finance package, combined with equity from government shareholders, is expected to deliver $900 million in benefits to Tasmanian and Victorian electricity consumers during the project’s first five years of operation.
Marinus Link CEO Stephanie McGregor described the development as a major landmark in transitioning to the manufacturing, construction and commissioning phase.
“Marinus Link Stage 1 is now fully funded, we have key Commonwealth and Victorian environmental approvals, a draft regulatory decision and almost all major contracts in place,” McGregor said.
The project will use undersea and underground cables to connect north-west Tasmania with Victoria’s Latrobe Valley, with a total capacity of 1,500 megawatts – enough to power 1.5 million Australian homes.
A fiber-optic cable to provide a 150x boost in internet capacity from Tasmania to the rest of the world is also being included a part of the project.
Construction is expected to begin in 2026, with the interconnector featuring converter stations at each end using advanced high-voltage direct current technology.
The final amount of the CEFC’s concessional finance remains subject to the regulator’s final determination on project costs.
Marinus Link is jointly owned by the Commonwealth of Australia, the Tasmanian Government and the Victorian Government.
