The Albanese Government, in collaboration with the Victorian and Tasmanian governments, has reached financial close for Stage 1 of the Marinus Link project, securing $3.8 billion in funding. The milestone marks the final investment decision for one of Australia’s most significant energy infrastructure projects.
Funding for the project has been secured through the Commonwealth’s Clean Energy Finance Corporation, alongside equity commitments from the Commonwealth, Victoria, and Tasmania. Officials say the move provides certainty for communities, contractors, and suppliers as preparations begin for construction.
Stage 1 of Marinus Link will deliver 750 megawatts of transmission capacity—enough to power around 750,000 homes. The project is expected to generate approximately 2,400 jobs and drive $2.4 billion in investment across Tasmania and Victoria. Construction is scheduled to commence in 2026, with completion anticipated by 2030.
The interconnector will play a key role in Australia’s clean energy transition by enabling mainland states to benefit from Tasmania’s hydro power during the evening and allowing Tasmania to draw on mainland solar generation during the day. It is also expected to enhance grid reliability and provide long-term certainty to major industrial users.
Analysis by Marinus Link Pty Ltd forecasts wholesale electricity price reductions of $15 per megawatt-hour in Tasmania and $17 per megawatt-hour in Victoria compared to a no-project scenario. Households in both states are expected to save an average of $25 to $36 annually on power bills once the project is operational.
Federal Minister for Climate Change and Energy, Chris Bowen, said the project represents a critical step in delivering cheaper and more reliable energy.
“Marinus Link is moving from plans on paper to work on the ground—creating thousands of jobs, boosting reliability and delivering clean power where and when it’s needed,” Bowen said.
Victorian Minister for Energy and Resources, Lily D’Ambrosio, highlighted the project’s role in addressing energy affordability and reliability.
“Marinus Link will create around 1,000 jobs per year of construction and play a critical role in powering Victorian homes and businesses with cheap renewable energy as our ageing coal-fired generators retire,” she said.
Tasmanian Minister for Energy and Renewables, Nick Duigan, described financial close as a milestone that will deliver lasting benefits.
“This project promises to deliver lower power prices, create more than 2,000 jobs in Tasmania, generate huge economic stimulus, and deliver intergenerational energy infrastructure,” Duigan said.
Marinus Link, which connects Tasmania and Victoria through subsea and underground transmission cables, is positioned as a cornerstone of Australia’s renewable energy future and a central pillar in the Albanese Government’s clean energy plan.
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