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    Project Marinus Frequently Asked Questions

    Project Marinus includes two developments:

    • Marinus Link – an electricity interconnector that will link Tasmania and Victoria through undersea and underground transmission infrastructure.
    • North West Transmission Developments – upgrades to Tasmania’s transmission network to support the new line from Palmerston to Burnie.

    Project Marinus will enable Tasmania to sell clean hydro, solar and wind energy to the mainland when prices are high and import electricity when needed.

    The project supports the National Electricity Market by improving reliability and helping Australia transition to a cleaner energy system.

    Stage 1 includes a 750 MW interconnector between Tasmania and Victoria, delivered via undersea, underground, overhead cables and convertor stations. It also includes upgrades to Tasmania’s transmission network, known as the North West Transmission Developments Stage 1, which enable this increased interconnection.

    The Final Investment Decision (FID) for Stage 1 of Project Marinus is a decision by all owners of Project Marinus (Tasmanian, Australian and Victorian governments) to proceed with the project. This means committing to funding and building Project Marinus Stage 1.

    The decision followed an evidence-based process, including assessment against eight assessment criteria. Evidence considered included the Whole-of-State Business Case, FID recommendations from TasNetworks and Marinus Link Pty Ltd, the Tasmanian Government’s due diligence findings and the input of the independent Expert Advisory Panel.

    For Tasmania, not proceeding with Project Marinus would mean:

    • missing out on $4.4 billion in economic activity
    • foregoing energy trading revenue from Hydro Tasmania
    • sunk equity and project wind down costs
    • risks to energy security as Basslink ages
    • building new interconnection in the future would likely cost significantly more than today.

    For households, there will be no noticeable impact. Small businesses may see less than a 1% increase. Without Marinus, prices could rise more. Large customers may face higher costs, but cost relief options are being considered.

    Construction of Project Marinus Stage 1 is expected to commence in 2026 and be completed by 2030. The Marinus Link interconnector will be operational from late 2030.

    Basslink has served Tasmania since 2006, but is nearing the end of its operational life. A second interconnector will provide greater energy security, allow Tasmania to export more clean energy to the mainland and support the growth of renewables and battery storage using Tasmania’s hydropower.

    Project Marinus will help lower wholesale electricity prices, improve energy security and enable new jobs and investment, particularly in the north west of the state. Hydro Tasmania’s increased profits will return to the State Budget to help fund services like health, education and infrastructure and to lower power bills for households and businesses.

    In 2025 Tasmania renegotiated its deal with the Australian Government. Tasmania’s contribution to the Marinus Link Project is capped at $103.5 million (approximately 4.27% of estimated project costs).

    A $346 million Australian Government grant will also now directly reduce charges for customers. Tasmania also secured access to concessional finance and funding to support new renewables.

    Financial close for Marinus Link is expected in August 2025, with construction starting in 2026.

    Financial Close for North West Transmission Developments is planned for early 2026.

    Commissioning for Project Marinus is expected in 2030-31. Work continues on approvals, community engagement and preparation for delivery.

    Under the shareholder agreement, Tasmania has an option to sell its shares to the Australian Government and/or Victorian Governments once the project is operational, if it chooses to exit.

    The costs are shared between Tasmania, Victoria and the Australian Government. Tasmania’s equity share in Marinus Link is capped at $103.5 million, meaning Tasmania will not be required to provide any more funding for Marinus Link.

    The NWTD is 100 per cent owned by Tasmania through TasNetworks. It is being funded through concessional finance provided by the Clean Energy Finance Corporation. A $346 million Australian Government grant towards the project from will reduce power bills for Tasmanians.

    Both projects will operate as regulated transmission assets, with efficient and prudent costs recovered from electricity customers, subject to approval by the Australian Energy Regulator (AER).

    The Tasmanian and Victorian Governments have agreed on a cost allocation for the project that will see Tasmanian customers paying 27.6 per cent and Victorians 72.4 per cent of the project's annual costs. The deal also includes significant federal funding and concessional finance to further reduce the cost to Tasmanian electricity consumers.

    Tasmania negotiated a new deal with the Australian Government, including:

    • capping Tasmania’s equity contribution at $103.5 million
    • ensuring Tasmania’s allocation under the national Capacity Investment Scheme is realised
    • a $346 million Australian Government grant that will directly reduce transmission charges for Tasmanian consumers once the project is operational.