Independent regulator makes final decision on Project Marinus
The Australian Energy Regulator (AER) has today published its final decisions on construction costs for Stages 1 of Marinus Link and the North West Transmission Developments (NWTD), concluding a near-decade of analysis and consultation.
The regulator’s assessment confirms analysis that Tasmanians and Victorians will be better off with investment in these national infrastructure projects, whose benefits have been extensively tested and costs subject to rigorous scrutiny.
Marinus Link Pty Ltd CEO Stephanie McGregor welcomed the AER’s decision as bookending the project’s assessment and planning phase, paving the way for full construction.
“We thank the AER for recognising our discipline in managing the project’s construction costs on behalf of electricity consumers,” Ms McGregor said.
“Our role now, as a regulated company and the custodians of national energy infrastructure, is to deliver efficiently, responsibly, and ensure the benefits are enduring for all Tasmanians and Victorians.
“Preparatory works are already underway across our project footprint. This final decision gives us the confidence to take construction into full swing later this year.”
The AER is responsible for ensuring energy consumers have access to a reliable and secure market and that they pay no more than necessary for energy to their homes and businesses. This is done by setting the maximum amount of revenue that monopoly electricity networks and natural gas pipelines can earn from consumers.
The decisions ensure that only prudent and efficient costs will be recovered from customers.
TasNetworks CEO Seán Mc Goldrick said the decision was reflective of the state-owned company’s work in ensuring the NWTD costs are prudent and efficient.
“This outcome underscores TasNetworks’ efforts to keep NWTD construction costs well-managed at a time when cost-of-living pressures have never been higher for Tasmanian communities and industry,” Dr Mc Goldrick said.
“The AER’s approval provides revenue certainty and is an important step in reaching financial close and commencing construction in the coming months.
“We continue to finalise concessional finance arrangements with the Clean Energy Finance Corporation, which will significantly reduce the pricing impacts of the project on Tasmanian electricity consumers.”
Late last year, Project Marinus Stage 1 advanced to the anticipated status in the national grid plan, recognising it as an essential step change in building a reliable, affordable and low-emissions grid.
The AER’s decision documents can be found here:
Marinus Link and NWTD are collectively known as Project Marinus.