How do customers benefit from Marinus Link
In 2023, independent experts FTI Consulting (FTI) updated their analysis of Marinus Link’s impact on wholesale electricity prices.
FTI’s final report – How do customers benefit from Project Marinus – shows household power bills would be better off with Marinus Link than without, with the largest savings to be felt by Tasmanians and Victorians.
The updated analysis forecasts net customer benefits of up to $12.5 billion, taking into account increased project costs, a revised staging approach and changing energy market conditions.
Key findings
What does Marinus mean for my power bill?
Marinus is expected to lower electricity prices, leading to a reduction in the wholesale energy portion of customer power bills:
- Up to $165 on average every year for Tasmanians; and
- Up to $78 on average every year for Victorians.
These reductions equate to net customer benefits of up to $12.5 billion across the National Electricity Market, after including the cost of Marinus.
How does Marinus lead to savings on my power bill?
Marinus puts downward pressure on wholesale prices by unlocking additional renewable generation and enabling the two-way flow of the lowest-cost energy between Tasmania and Victoria.
Marinus unlocks Tasmania’s world-class wind potential, pumped hydro resources, and better access to the existing Tasmanian hydro fleet. This displaces higher-priced generation (largely gas-fired generation and demand response).
How are these savings forecast?
FTI’s findings are based on market modelling, using inputs, assumptions and policy scenario settings that are broadly consistent with the Australian Energy Market Operator’s (AEMO) 2023 Inputs, Assumptions & Scenarios Report (IASR), focusing on the Central (step change) scenario.
Figures are calculated for both stages of Marinus Link (1500 MW).