National
Tasmania Grid Link Secures $1.2B Boost From Clean Energy Fund
The Clean Energy Finance Corporation has committed $1.2 billion to TasNetworks for stage one of the North West Transmission Developments project in Tasmania, completing all funding required for Project Marinus. The money comes from the Rewiring the Nation Fund and will fund upgrades to more than 130 kilometres of transmission infrastructure. Consumer network charges are projected to fall around 55 per cent over the life of the project, delivering an estimated $315 million in savings to Tasmanian electricity consumers in the first five years. The investment completes a broader push to connect Tasmania’s hydro resources to the mainland grid.
Tasmanian electricity transmission network: Project Marinus, which is now fully funded, receives $1.2 billion from the Clean Energy Finance Corporation. The deal aims to lower network costs to Tasmanians by 55%, saving $315 million over the first five years.
Key Highlights
- North West Transmission Developments CEFC to invest $1.2 billion with TasNetworks
- Consumer network charges are expected to reduce around 55 per cent vs standard regulatory settings over the project period.
- Tasmanians with electricity bills will save about $315 million during the first five years of operation.
- TasNetworks will strengthen more than 130 kilometres of transmission infrastructure
CEFC Invests $1.2B into Tasmania Project Marinus
TasNetworks has secured the final piece of funding needed to bring its Project Marinus project on board after finally gaining $1.2 billion from Clean Energy Finance Corporation for stage one of the North West Transmission Developments project. Funding comes from the $1 billion Rewiring the Nation Fund and comes on top of an existing CEFC investment in Marinus Link itself.
TasNetworks will direct the funding to replace over 130 km of transmission infrastructure between Heybridge (the Marinus Link landing point) and Tasmania’s existing transmission network, as well as new and upgraded substations and grid infrastructure to manage power flows and maintain system stability.
How the Funding System Remains Value Dependent
The Project Marinus intends to join the electricity interconnection between Tasmania and the mainland National Electricity Market. It will provide a way for Tasmanians to receive cheaper (solar) power from the mainland while at all times permitting the rest of Australia access to firm and secure hydroelectric power whenever it is needed.
Compared to normal regulatory settings, this produces an average reduction of around 55% in consumers’ network costs over the life of the project and estimated on a five-year rolling basis around $315 million savings to Tasmanian consumers during operation.
What the CEFC and TasNetworks Are Saying
CEFC Chief Executive Ian Learmonth said the financing would transfer directly into lower bills for customers. He added that the gas pipeline helps balance renewable energy where it needs it most, creates reliability in the grid and supports clean energy transition across the national market by linking Tasmania’s hydro resources with mainland demand.
TasNetworks Chair Roger Gill said that the deal had changed the economics of building the infrastructure completely. He said the CEFC finance underpinned the delivery of this infrastructure in a way that would not have been possible with commercial financing alone.
FAQs
- What is Project Marinus?
A project that would increase the electricity connection between Tasmania and the mainland so that energy can more easily flow both ways.
- What savings will Tasmanian consumers receive?
$315 million over the first five years, including network costs dropping almost 55% below the current settings.
- What will TasNetworks actually build?
Overflowing transmission infrastructure that stretches over 130km plus new and upgraded substations.
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