The Marinus Link interconnector project in Australia has reached a Final Investment Decision (FID) and received federal environmental approval, clearing the way for construction of Stage 1 to begin in 2026.
Marinus Link Pty Ltd (MLPL) said the decision confirms that there is a sound financial and economic investment case for proceeding with the construction phase of Stage 1, based on an assessment of forecast costs, revenue, associated benefits, and risks.
MLPL CEO Stephanie McGregor said Marinus Link’s legacy has been cemented in Australia’s energy system, economy and climate aspirations. “The coming together of three jurisdictions demonstrates Marinus Link’s truly national significance and benefit across the National Electricity Market, as well as directly to communities in Tasmania and Victoria,” McGregor said. “This marks our shareholders’ green light for the Marinus Link project. Everyone who has worked on Marinus Link from conception to now deserves credit for this historic achievement and should be incredibly proud. Your conviction will change the course of a nation.”
The project will connect the island state of Tasmania with the state of Victoria via a subsea and underground high-voltage direct current (HVDC) link, increasing the transfer of renewable generation – particularly Tasmanian hydroelectricity – into the National Electricity Market (NEM).
Stage 1 will deliver 750MW of capacity, roughly equivalent to supplying 750,000 Australian homes. The full two-stage build will total 1500MW. Electricity will flow in both directions, enabling Tasmania to export surplus hydro and wind generation to mainland Australia and import electricity when mainland wind and solar output is high, conserving hydro storage.
According to the Australian Energy Regulator, Marinus Link will deliver more than $1 billion in climate pollution savings and place downward pressure on energy prices. The project is expected to create up to 3,300 direct and indirect jobs across Tasmania and Victoria during development and construction.
Federal Climate Change and Energy Minister Chris Bowen said: “Marinus Link will bring more of Tasmania’s hydroelectricity to the mainland. It will deliver an economic boost to Tasmania and wider Australian industry during construction as well as having long lasting benefits by improving the transmission of cleaner reliable renewable energy.”
“By unlocking Tasmania’s world-class renewable energy resources, this project will help power homes and businesses across the eastern seaboard and accelerate our transition to net zero.
It will also strengthen energy security for Tasmania and Victoria by providing National Electricity Market (NEM) customers with greater access to a diverse and abundant supply of renewable energy and storage capacity,” added Federal Environment and Water Minister Murray Watt. “The project will support the creation of hundreds of jobs in both Victoria and Tasmania and will create future opportunities for investment opportunities for business in construction, engineering, telecommunications, and renewable energy sectors.”
Hydro Tasmania CEO Rachel Watson said the project would provide both operational flexibility and market opportunities for the state’s hydro system.
“A modern energy system that meets growing demand, keeps prices as low as possible and mitigates climate risks will require a combination of interconnection, transmission and flexible hydro capacity working in concert with wind and solar,” she said. “Marinus will deliver additional resilience during dry conditions, allowing Hydro Tasmania to strategically manage water levels in our dams. And critically, it will help attract the new wind and solar generation we need to complement our hydro network and grow the state’s generation capacity.”
Construction of Stage 1 is scheduled for completion in 2030. The Australian Government has set strict environmental conditions for both marine and terrestrial works. The approval process included consultation with the Tasmanian and Victorian Governments and offshore regulators to address impacts on protected species and ecosystems.
