TasNetworks is pleased to release its Business Case Assessment and Project Assessment Draft Report. Media releases can be found below.

TasNetworks releases Business Case Assessment for a second Bass Strait electricity interconnector

From Lance Balcombe – TasNetworks CEO

TasNetworks is pleased to release the Business Case Assessment considering Marinus Link, a second Bass Strait electricity interconnection between Victoria and Tasmania.

This is the key deliverable in the $20 million Feasibility and Business Case Assessment, jointly funded by the Tasmanian Government through TasNetworks and the Australian Government through the Australian Renewable Energy Agency (ARENA).

“TasNetworks’ analysis shows that Marinus Link and supporting transmission will support Australia’s transition to a low-cost, reliable and clean energy future.

“The investment in Marinus Link and supporting transmission will provide additional dispatchable capacity across Bass Strait to support a transforming National Electricity Market (NEM).

“I’m pleased to announce that the business case is very positive, and shows that a 1500 MW Marinus Link and supporting transmission are technically feasible and commercially viable, providing substantially greater benefits than costs under all scenarios modelled and a commercial rate of return to owners as a regulated service.

“Economic analysis undertaken indicates that in addition to benefits to the energy market, the project delivers significant broader economic contributions from the development, construction, and operation of Marinus Link and supporting transmission, including economic value add forecast to be up to $1.4 billion and 1,400 of jobs in Tasmania and $1.5 billion and 1,400 jobs in Victoria.

“Marinus Link and supporting transmission also unlocks an additional pipeline of investment in renewable energy and long duration energy storage development in Tasmania estimated to be up to $5.7 billion and 2,350 jobs at peak of construction,” Mr Balcombe said.

TasNetworks’ economic analysis for the project has considered the electricity market benefits of Marinus Link and supporting transmission to customers in the NEM, measured under the Regulatory investment test for transmission (RIT-T).

The findings of the RIT-T are presented in the Project Assessment Draft Report (PADR), which has been released today for public consultation.

TasNetworks continues to raise awareness and understanding and promote opportunities for stakeholders to provide feedback comment on Marinus Link and supporting transmission.

This includes engagement undertaken and planned on preliminary route options, environmental and cultural matters, pricing frameworks, economic benefits and costs, and the business case assessment process.

“Marinus Link and supporting transmission would unlock Tasmania’s cost-competitive generation and storage resources.

“Together they are part of the lowest cost solution to provide dispatchable, clean energy to the NEM where and when it’s needed.
“Therefore, we conclude that work should continue to progress Marinus Link and supporting transmission upgrades to a ‘shovel ready’ national infrastructure project, able to be in service from 2027,” Mr Balcombe said.

ENDS

Media contact 

Rowan Dix (03) 6271 6271 | 0436 919 989
rowan.dix@tasnetworks.com.au

TasNetworks releases Project Assessment Draft Report (PADR) as next step in Marinus Link Regulatory Investment Test – Transmission (RIT-T) process.

From Lance Balcombe – TasNetworks CEO

“TasNetworks is pleased to announce the release of the (Project Marinus) Project Assessment Draft Report (PADR). The report’s release is an important milestone for the project and the next step in the Regulatory Investment Test – Transmission (RIT-T) process for Marinus Link, the proposed second Bass Strait interconnector,” said Mr Balcombe.

The PADR builds on the Project Marinus Project Specification Consultation Report (PSCR) taking into account feedback from submissions received during the consultation period following the PSCR’s release in July 2018.

“Economic analysis undertaken for the RIT-T demonstrates that Marinus Link and supporting transmission will provide an economic advantage to Australia, with benefits significantly outweighing costs in all modelled scenarios.

“A 1500 MW Marinus Link would deliver the most benefits to customers.

“There are a range of optimal timing outcomes depending on the assumptions, and Marinus Link and supporting transmission could be in service from 2027,” Mr Balcombe said.

The RIT-T requires consideration of all ‘credible options’ that would meet the ‘identified need’.

In the PSCR, the identified need was described as:

The characteristics of customer demand, generation, and storage resources vary significantly between Tasmania and the rest of the NEM.

Increased interconnection capacity between Tasmania and the other NEM regions has the potential to realise a net economic benefit by capitalising on this diversity.

The ‘credible options’ are a choice of transmission capacity options for Marinus Link that range from 600 to 1500 megawatts.

“The findings and recommendations of the PADR are that a 1500 MW Marinus Link and supporting transmission upgrades deliver a net market benefit by providing a cheaper supply option for mainland NEM regions.

“The PADR analysis shows that a Marinus Link developed in two 750 MW stages provides optimum electricity market benefits with the first stage including the proposed supporting Tasmanian transmission upgrades to be commissioned in 2028, and the second 750 MW stage commissioned in either 2030 or 2032 depending on market needs,” said Mr Balcombe. 

TasNetworks also continues to work with the Australian Energy Market Operator (AEMO) as it prepares its draft and final 2019-20 Integrated System Plan (ISP), which considers future transmission investment needs for the NEM.

TasNetworks looks forward to receiving feedback on the PADR over the coming months as part of the RIT-T consultation process including briefings in Melbourne, Sydney and Hobart in early 2020.

To register for these public events please contact the project team at TasNetworks by emailing team@marinuslink.com.au.

ENDS

Media contact 

Rowan Dix (03) 6271 6271 | 0436 919 989
rowan.dix@tasnetworks.com.au

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