Marinus Link construction costs undergo independent regulator assessment
Marinus Link Pty Ltd (MLPL) has submitted its latest Revenue Proposal to the Australian Energy Regulator (AER), which relates to the costs of constructing the Marinus Link project, while updated modelling shows Victorian and Tasmanian households will reap the benefits of the project.
Marinus Link’s Stage 1 total costs are forecast to be $3.86 billion, an increase of approximately 17% compared to pre-tender completion estimates. The updated costings do not impact project timelines, with construction expected to begin in 2026 and be completed by 2030.
The case for Marinus is strong. Marinus Link delivers Tasmania and Victoria’s future electricity needs at a lower cost compared to alternative solutions, saving the National Electricity Market $1.4 billion in avoided costs.
Additionally, updated consumer benefits analysis by FTI Consulting indicates on average, households in both Tasmania and Victoria will be better off after investing in Project Marinus.
Taking these savings and accounting for network costs, a typical household will save between $25 – $36 on average every year.
MLPL’s Interim CEO Dr Collette Burke said this cost estimate is consistent with trends seen across other Australian infrastructure projects, particularly transmission, as noted in the Australian Energy Market Operator’s 2023 Transmission Expansion Options Report.
“The estimate reflects unprecedented demand for undersea cables, driven principally by demand in Europe as the world embraces the energy transition and manages the uncertainty created by international events,” Dr Burke said.
“MLPL has made significant progress in clarifying the costs of Marinus Link following the completion of competitive tender processes to secure suppliers for the submarine and land cables and the highly specialised converter station technology.”
Dr Burke emphasised the Revenue Proposal provides the clearest picture yet of Marinus Link’s investment cost and benefits to electricity consumers.
“Sharing the strengths of each power system creates a strong synergy that benefits both states and the wider National Electricity Market.
“In addition to consumer and energy market benefits, Project Marinus stimulates regional economies in Gippsland and North West Tasmania, generating $2.4 billion in economic activity and nearly 2,400 jobs from Stage 1 alone.”
The AER will now review MLPL’s forecast capital expenditure for Marinus Link’s construction phase to ensure the project is consistent with the National Electricity Objective.
Final costings for onshore civil and installation works are due in Q2 2025 and will be submitted to the AER as part of a revised Revenue Proposal in July 2025.
Formal public engagement on Marinus Link’s Stage 1 Revenue Proposal – Part B (Construction costs) will commence in Q1 2025.