An updated cost-benefit analysis of Project Marinus has revealed construction costs for the first stage of Marinus Link and the North West Transmission Developments will total more than $5 billion dollars.
Marinus Link is a proposed undersea and underground electricity and data interconnector between north-west Tasmania and the Latrobe Valley in Victoria.
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The cost analysis provided by Marinus Link Pty Ltd (MLPL) and TasNetworks showed increases of approximately $230 million since the previous update.
Despite this, the cost-benefit analysis shows Marinus Link to be the lowest cost solution by $3.4 billion.
In addition, an independent report by FTI Consulting said a future scenario with Project Marinus was expected to provide substantial consumer benefits resulting from reductions to wholesale electricity prices across the National Electricity Market.
FTI’s report noted, “consumer benefits from lower electricity prices across the NEM will significantly exceed the costs of construction.”
MLPL CEO Stephanie McGregor said both updated analyses found benefits had increased substantially based on the latest information.
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“The updated modelling draws from the Australian Energy Market Operator’s latest input assumptions and future scenarios data, which show an increased need for Project Marinus in meeting future electricity demand across the grid,” McGregor said.
“These findings show that as the energy market continues to evolve, Project Marinus remains crucial for energy affordability, security, and decarbonisation.”
