A new report from respected economist Saul Eslake has backed the Marinus Link project, arguing it will improve Tasmania’s energy security and is in the national interest. The findings, released today, come just days after a separate analysis found the multi-billion dollar undersea cable’s business case had “largely collapsed”.
The Tasmanian Government welcomed the Eslake report, which was commissioned by industry group Clean Energy Tas. Energy Minister Nick Duigan said in a statement that the report confirms the project will strengthen the state’s economy, create jobs, and lower power prices. “The Report confirms what we’ve all long known: Marinus will benefit Tasmanians and the nation,” Mr Duigan said.
This positive assessment follows a critical report released last week by the Bob Brown Foundation. That report, authored by Dr. Bruce Mountain from the Victorian Energy Policy Centre, argued that Marinus Link would lead to significantly higher network charges for Tasmanian consumers. Dr. Mountain’s analysis claimed the original “Battery of the Nation” vision was no longer viable, as mainland battery storage had become more competitive and Tasmania lacked a significant energy surplus to export.
The competing reports highlight the ongoing debate over the 1500-megawatt undersea and underground electricity and data connection to Victoria. Proponents, including Marinus Link Pty Ltd and the state government, argue the cable will allow Tasmania to import cheaper renewable energy, like solar from the mainland, and export stored hydropower when the national market needs it, putting downward pressure on prices. They also point to increased data security with a new fibre optic cable.
The project is being jointly funded by the Australian, Victorian, and Tasmanian governments. It involves running a 255km undersea cable from near Burnie to Victoria’s Latrobe Valley.
The Australian Energy Regulator (AER) in February gave its final approval for the construction costs of the project’s first stage, stating the investment would benefit both Tasmanians and Victorians. However, the report from Dr. Mountain last week was critical of the modelling used to justify the project, alleging the benefits had been overstated.
The Eslake report, as described by the ABC, counters this by reasserting the project’s value for national energy security. The full ABC News report can be read on their website.