The Australian Energy Regulator (AER) has invited stakeholders to submit feedback on the Marinus Link Revenue Proposal – Part B (Construction costs), publishing an accompanying issues paper that highlights key details.
The issues paper sets out the AER’s initial observations on the proposed Marinus Link construction costs and the procurement process to date. This includes a proposed total construction expenditure of $3.5 million for stage one of Marinus Link.
The AER said the paper also highlights aspects of the proposal that it is particularly interested to hear from stakeholders about to inform the initial draft decision.
Marinus Link Pty Ltd (MLPL) submitted its draft proposal for capital expenditure for the first Marinus Link cable over the 2025–30 regulatory period in November 2024.
The document proposed the maximum allowable revenue (or ‘MAR’) for stage one of the project based on several factors. This includes the final costs to complete the project, the cost of debt, return on equity, depreciation of the asset and other factors.
The initial draft decision is expected to be released in May 2025 on the market tested costs for converter station designs and the high voltage direct current cable system. This is approximately 46 per cent of the total proposed capital expenditure for stage one of Marinus Link.
The AER expects a revised proposal from MLPL in July 2025 that includes updated costings on the remaining costs on the balance of works, support activities and risk allowance, which are not assessed at the initial draft decision stage.
A final decision, which combines the AER’s assessment of each stage of the decision-making process, will be published in December 2025.
Interested stakeholders are invited to send submissions to inform the AER’s initial draft decision on the construction costs proposal by 18 April 2025.
MLPL said the consultation period is an important part of the project’s planning and procurement process to ensure clarity and confidence for the community and energy consumers about the impact and benefits of Marinus Link in delivering cleaner, affordable and more reliable energy in the future.
