Federal Labor delays Marinus Link EPBC decision for a third time, as state sits on cost report

Marinus Link will have to wait nearly one month longer to learn whether or not it has federal environmental approval, after a decision on the undersea transmission cable proposed to connect North West Tasmania and Victoria’s Latrobe Valley was pushed out to July 25.

The fresh delay was announced in a notice published on the federal government’s EPBC portal this week, marking the third time respective Labor environment ministers have sought more time to make a call on the huge and contentious project.

In a statement emailed to Renew Economy on Friday, a spokesperson for federal environment minister Murray Watt said the extension “is necessary to complete the required consultation with the proponent and relevant Commonwealth and state Ministers.”

The project was first proposed as two cables with a combined capacity of 1500 megawatts (MW), but the Marinus Link was cut in half in late 2023, in a deal between federal Labor and the Victoria and Tasmania state governments, in response to ballooning costs.

It has now been pared back to a first stage of just one 750MW cable, and the federal government agreeing to take a bigger stake to reduce the financial burden on Tasmania.

Last month, the Victorian government issued environment approvals for its parts of the project and the Marinus Link board made a recommendation that shareholder governments of the project make a decision to proceed to final investment decision.

The recommendation advises that there is a sound financial and economic investment case for proceeding with the construction of the 750 MW stage one of Marinus, based on an assessment of forecast costs, revenues and associated benefits and risks.

The latest EPBC delay puts the timing for the federal decision on the other side of the July 19 Tasmania election, the state’s fourth in seven years and second within 16 months, called after Liberal Premier Jeremy Rockliff lost a no-confidence motion at the start of the month.

Marinus Link has been a regular feature of debate in the lead-up to the election, in particular over delays to the release of treasury’s whole-of-state business case for the project, which will reveal the full costs of the project, including to Tasmanian energy consumers.

The Rockliff government is said to have been sitting on the completed treasury report since the end of May, but has now decided not to release it until after the state election. A final investment decision (FiD) on the project had also been expected to be made in July.

Debate over the merits and costs of Marinus Link is not new. Since its inception, the project has been decried by opponents as is “an expensive risk” for energy consumers, a white elephant of the energy transition, and a “boondoggle” that will offer “virtually no benefit to Tasmanians.”

Its supporters, including Liberal energy minister Nick Duigan, describe it as a “once in a generation opportunity” for new renewable and industrial growth in the island state and a “game changer,” that comes bundled with a new fibre optic telecommunications cable.

“Together with the North West transmission developments, Marinus Link, amongst new generation projects, supports further capacity and strengthens the backbone for our electricity system,” Duigan told the 7th annual Tasmania Energy Conference in early June.

“It will, of course, enable more clean generation to be built right here on the island, creating jobs, boosting regional economies and securing long term benefits for Tasmanian communities.

“Our [FiD] decision with our shareholders is now just around the corner.”

Tasmania’s Labor Party is also said to be supportive of Marinus, although to what degree is unclear. In March, the leader of Tasmanian Labor, Dean Winter described Marinus as “a critical project for the nation, and …too important to stuff up.”

But Winter also said, “Labor took a policy to the last state election to get Tasmania off the hook for Marinus, and we stand by it.”

Craig Garland, the independent member for Braddon who is running for re-election in the state’s north west, has called for “clear answers from all current and hopeful members of Parliament around whether they support Marinus Link – and on what basis.”

Garland, who opposes the project, is also calling for the release of the whole-of-state business case before the end of the month.

“Tasmanians deserve a genuine debate on the merits of this … project. If the major parties are prepared to lock in higher power bills for Tasmanians, they must explain why,” he said earlier this month.

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