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A significant effort is underway to modernise the electricity grid and meet the nation’s growing demand for power. New energy pathways are essential to move electricity from where it is generated to the homes and businesses where it is needed most. Marinus Link, a major interconnector project between Tasmania and Victoria, represents a crucial step toward building a more reliable and affordable energy future for these communities.
Since its conception in 2017, Marinus Link has undergone extensive technical and economic assessments. With the final investment decision for stage one confirmed in August 2025, early works are now commencing. This first stage will provide 750MW of capacity, with a potential second stage bringing the total to 1500MW. This infrastructure is designed to bolster the existing Basslink connection, ensuring that both states have the capacity required to grow and prosper for generations to come.
The project offers increased grid flexibility, which is vital as the energy landscape transitions away from coal-fired power. By linking the two states, Tasmania can export greater amounts of hydropower to Victoria and the broader National Electricity Market. Conversely, during periods of high wind and solar production in Victoria, Tasmania can import this low-cost renewable energy. This exchange allows Tasmania to store its hydropower for use during peak demand periods, helping to keep the lights on and the doors open for businesses across the region.
One of the primary community benefits of Marinus Link is the downward pressure it places on wholesale electricity prices. By increasing access to hydropower, the grid can rely less on more expensive gas-fired generation during peak times. This shift helps lower wholesale prices in both Victoria and Tasmania, providing essential relief to families and helping local businesses thrive in a competitive economy.
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