Tasmania secures important settlement for Marinus

The Tasmanian Government has secured a landmark settlement to progress Project Marinus, making certain the undertaking protects Tasmanian energy costs whereas delivering important financial advantages.

In a large win for Tasmania, a brand new settlement has been struck with the Australian Government to inexperienced gentle the undertaking’s development, delivering virtually half a billion {dollars} in extra advantages to the State.

Premier Jeremy Rockliff stated the Tasmanian Government has secured a landmark settlement to progress the Project.

“We have worked closely with the Australian and Victorian Governments to ensure Marinus stacks up for Tasmanians,” Premier Rockliff stated.

“Marinus will deliver lower power prices, create more than 2,000 jobs in Tasmania, generate huge economic stimulus, and deliver intergenerational energy infrastructure.

“It is estimated an additional $470 million will be added to the State’s bottom line each year on average, ensuring we can invest more in hospitals, schools, roads and keep power prices low.

“All these benefits to Tasmania are being delivered from Tasmania’s capped $103 million investment into Marinus.

“We will always be in the corner of Tasmanians. This agreement is a win for investment, a win for jobs and a win for keeping our power prices low.”

This landmark settlement means the Australian Government will now pay its share of the North West Transmission Development (NWTD), which is an important a part of Project Marinus.

Under the Marinus settlement:

• Tasmanian households and small businesses will pay lower power prices with Marinus than without it;
• Tasmanian taxpayers no longer need to contribute further equity into the project while retaining our shareholder say in key decisions affecting Tasmanians;
• The costs of the NWTD are fairly shared;
• A $346 million grant to the State to develop the NWTD;
• $650 million additional concessional financing for Tarraleah;
• More than 7GW of private sector energy investment is unlocked; and
• Economic benefits and Hydro profit returns are protected.

Minister for Energy and Renewables, Nick Duigan, said Project Marinus is critical to our State’s energy future.

“Marinus provides a once-in-a-generation opportunity to create jobs, industries and grow our economy to support the lifestyle that Tasmanians expect and deserve,” Minister Duigan said.

“It will deliver the energy Tasmania needs to grow and for our communities to continue to electrify, while ensuring that our State reaps the benefits of our unique energy assets and their contribution to Australia’s renewable energy transition.

“With this deal in place, I can confirm Tasmania has made a positive final investment decision, agreeing to move the project forward to construction.”

A thorough and detailed analysis undertaken by RecFIT and Treasury, along with independent consultants, shows that Marinus will work to keep Tasmanian power prices low while creating an economic boon for our State.

Economic stimulus, resulting from an additional investment of approximately $4.4 billion in Tasmania, is forecast, along with an increase in Hydro profits that will directly benefit our state’s bottom line.

The benefits from Project Marinus will flow to every Tasmanian household through lower power prices and increased dividends from Hydro Tasmania.

Project Marinus documents: www.recfit.tas.gov.au/what_is_recfit/major_investment_projects/project_marinus