Marinus Link, the proposed 1,500MW transmission link between Tasmania and Victoria, is set to progress to early works following the decision to commence a transmission determination process.
The decision allows Marinus Link to progress the project and submit a regulatory proposal to the Australian Energy Regulator for early works, allowing for better revealed costs and ongoing engagement with consumers and affected stakeholders.
Stage one of the transmission determination process will involve an early works revenue determination which would cover development and tendering work, and a construction cost determination which would determine the cost of constructing the Marinus Link project. Stage one costs will not be recovered from consumers until the Marinus Link Interconnector is commissioned.
Stage two will involve a full revenue determination which, on the basis of the construction cost determination, would determine all of the matters required, including an opening Regulatory Asset Base and incorporating other elements of building block methodology, such as operating expenditures and a rate of return allowance, to determine revenues and tariffs.
The Marinus Link project comprises two undersea High Voltage Direct Current cables which will run across the Bass Strait and into converter stations in Tasmania and Victoria. Marinus Link is planned to connect to the existing transmission networks in both states. Upgrades to the Tasmanian transmission network will be required to accommodate the new link.
