“An ecological and economic disaster:” Green group slams Marinus Link deal

News that federal Labor will use its $20 billion Rewiring the Nation program to support critical transmission upgrades in Tasmania and Victoria – including the Marinus Link undersea cable linking the two states – has been broadly hailed by industry and green groups as a welcome leap of progress in the shift to renewables.

The $2.25 billion deal between the federal, Victorian and Tasmanian governments is seen as financing the creation of six renewable energy zones crucial to the delivery of enough solar and wind, including offshore projects, to replace coal.

The Clean Energy Council said on Wednesday that the deal to help finance critical transmission projects in Victoria and Tasmania would unlock massive investment and serve as a game-changer for Australia’s clean energy transition.

“After years of delay it’s good to see governments getting directly involved in developing the grid, and working together to fix the energy system, deliver cheaper power and act on the climate crisis,” said Pat Simons, Friends of the Earth’s renewable energy spokesperson.

Amanda Mckenzie, Climate Council CEO, said this kind of “proactive, coordinated action across levels of government” was exactly what was needed to build a clean grid as quickly as possible.

“This new infrastructure will help rid our electricity network of coal by unlocking new renewable energy projects. That’s not just a win for our climate, it’s also a win for regional communities who have worked to power our nation for generations,” McKenzie said.

Environment Victoria CEO Jonathan LaNauze said the announcement would mean “more jobs, cheaper energy bills and lower carbon emissions.”

But not everyone is happy with the news.

“An ecological and economic disaster”

Former Greens leader and secretary of the board at the Bob Brown Foundation, Christine Milne says the federal government’s financial backing of the Marinus Link is an “ecological and economic disaster” for Tasmania.

Milne said on Wednesday she was “devastated” by the news that the Labor Albanese government will provide $1 billion in low cost finance to support the contested undersea cable, as well as pumped hydro projects and local network upgrades in Tasmania.

As RenewEconomy has reported, Victoria will contribute equally with the Tasmanian and Commonwealth governments to provide a total of 20 per cent of the project equity needed to deliver Marinus Link, hailed as the island state’s “battery of the nation” project.

But Milne says the power cable, that will serve as a second link between the grids of Tasmania and the mainland, is being propped up by the various governments because it doesn’t stack up economically.

“It’s a terrible project, that will plunge Tasmania into debt, for virtually no benefit to Tasmanians,” Milne told RenewEconomy.

An extension of Tasmania’s hydro debt

“Tasmania can never afford to do anything because we are are crippled with debt [from establishing the state’s hydro power system],” she said.

“And now Marinus is going to be concessional loan – all to facilitate private sector investment in wind farms that are not necessary, when the mainland is more than capable of producing them itself.”

For Tasmania, a chunk of the Rewiring Australia money will go towards building new transmission lines to link Cressy, Burnie, Sheffield, Staverton and Hampshire, known as the North West Transmission Developments (NWTD), in a bid to boost the capacity of the state’s electricity network.

This upgrade also feeds into plans to develop a couple of major wind projects in Tasmania’s north-west, including the $1 billion Robbins Island Renewable Energy Park proposed for development in two stages by UPC\AC Renewables that could amount to 900MW.

Milne says the wind and transmission projects threaten to industrialise the top half of Tasmania, from the far north west to the far north east, with steep social and environmental costs.

“Everybody seems to have forgotten the reason we are making the transition to renewable energy is to address climate – and you don’t address climate by destroying biodiversity,” she said.

“TasNetworks estimated that 6 per cent of the benefits [from the Battery of the Nation projects] would go to Tasmania, and the rest to mainland.

“So for six per cent of a project, we’re destroying our own environment and crippling ourselves with debt – how is that a deal for Tasmania?”

Social licence still needed

Environment Victoria, while broadly supportive of the announcement, noted that projects of national significance on this scale still require social licence to operate.

“Communities hosting transmission lines must be involved in planning to ensure local impacts are minimised and genuine benefits achieved,” LaNauze said.

“These processes must uphold stringent standards of biodiversity protection and environmental impact mitigation under state and federal laws.

“Transmission companies and governments at all levels have a responsibility to ensure that the people who are directly impacted including First Nations, local communities and environmental groups are active participants in the planning process.”

To that end, Tassie’s minister for energy, Guy Barnett, on Tuesday released a Draft Guideline for Community Engagement, Benefit Sharing and Local Procurement, and called for public submissions.

Through the Guideline, Barnett says the government aims to set a clear standard for best practice in the Tasmanian renewable energy industry, with an emphasis on community engagement and sharing benefits.

“Landholders, neighbours and the broader community will have material concerns about energy projects that will need to be addressed,” said Australia’s Energy Infrastructure Commissioner, Andrew Dyer.

“Once finalised, these guidelines should play a vital role in helping to enable a project’s acceptance and success through effective engagement,” Dyer said.