Marinus Link Stage One Approved; Bill Impact Uncertain

Rowan Ashford

Published: February 9, 2026 4:28 PM ET

Marinus Link Stage One Approved; Bill Impact Uncertain

The Australian Economic Regulator (AER) has granted approval for the initial stage of the Marinus Link and associated transmission line. However, questions linger regarding the financial impact on electricity bills for Tasmanians.

Marinus Project Overview

The Marinus Project encompasses two main components: the North West Transmission Developments (NWTD) and Marinus Link. The NWTD will involve the development of approximately 240 kilometers of new or upgraded powerlines.

Project Details

Start Point: Palmerston near Cressy in Northern Midlands.
End Point: Burnie in the north-west, looping back to Sheffield, south of Devonport.
Cost: The construction cost for Marinus Link is estimated at $3.47 billion, while the NWTD project will be around $922 million.

Impact on Electricity Bills

While the AER has approved these projects, it has expressed uncertainty about how they will affect electricity bills. It is estimated that the cost increase from the NWTD will add approximately $15.50 annually to households’ transmission costs starting in 2026. This amount could rise to $49 per year once the transmission lines become operational in 2029.

Financial Offsets

To mitigate these costs, the Tasmanian government plans to utilize a federal grant of $346 million. This grant is expected to reduce a residential customer’s electricity bill by about 1% per year. Additionally, concessional finance from the Clean Energy Finance Corporation (CEFC) is in negotiation, which could further ease customer expenses by up to 90%.

Annual Consumer Savings: Estimated at $15 million due to the $346 million federal grant.
CEFC Loans: $3.8 billion of concessional loans approved to reduce transmission costs by 45%.

Controversy and Expert Opinions

Despite optimistic projections from the Tasmanian government regarding lower future energy prices, debates persist. Independent MLC Ruth Forrest has voiced concerns, asserting that consumers will bear increased costs once the infrastructure is developed.

Conflicting Reports

Two separate reports present contrasting outlooks on the project’s financial implications. A 2025 report by FTI Consulting predicts a decrease of $113 annually in electricity bills due to more renewable energy sources. In contrast, a 2024 Deloitte report suggests that prices will escalate as Tasmania integrates more closely with the national energy market.

Next Steps

Construction of the Marinus Link and NWTD is slated to commence this year. As developments unfold, the Tasmanian government remains committed to maintaining that the project will ultimately lead to lower power costs for residents.