Media release – Prime Minister, Premier of Tasmania, Minister for Energy and Emissions Reduction, Tasmanian Minister for Energy, 15 Dec 2020
Energy and Emissions Reduction Deal With Tasmania
The Morrison and Gutwein governments have signed a State Energy and Emissions Reduction Deal that will create thousands of jobs and deliver secure, reliable and affordable power to the state and the broader National Electricity Market (NEM).
Under the agreement, the governments will work closely to deliver Battery of the Nation and Marinus Link projects to better connect Tasmania with mainland Australia and the NEM, while improving energy security, keeping prices low and reducing emissions.
Prime Minister Scott Morrison said delivering the Marinus Link and Battery of the Nation projects are a key part of the Federal Government’s JobMaker Plan to ensure affordable and reliable energy in the east coast energy grid.
“These two projects will maintain downward pressure on electricity prices, so households can keep more of what they earn,” Prime Minister Morrison said.
“They will also develop the backbone of a reliable, lower emissions National Electricity Market for the next decade and beyond.
“These projects will create 2,800 jobs which will be crucial as Tasmania continues to recover from the COVID-19 pandemic.”
Minister for Energy and Emissions Reduction Angus Taylor said this deal with Tasmania demonstrates the Morrison Government’s commitment to ensuring households and businesses in every corner of the country can access affordable and reliable power.
“Projects like Marinus Link and Battery of the Nation can help deliver a more reliable energy system, reducing the risk of blackouts and electricity price volatility.
“Marinus Link will provide the additional interconnection needed to export the electricity generated by the Battery of the Nation projects to the mainland. In doing so, it will unlock a pipeline of new renewable energy investment, including pumped hydro energy storage.
“Energy projects like this also represent a massive economic opportunity for Australia as we recover from the COVID-19 recession.”
Premier Peter Gutwein said the MOU between the State and Federal Governments will underpin our plans to rebuild a stronger Tasmania.
“The MOU will help to further unlock Tasmania’s renewable energy potential, with thousands of jobs and over $7 billion in economic activity set to flow as a result,” the Premier said.
“Having already achieved 100 per cent self-sufficiency in renewables, Tasmania is already punching above its weight in generating low cost, reliable, clean energy for the nation, and this will help us achieve our target to double our renewable generation to 200 per cent of our current needs by 2040.”
Tasmanian Minister for Energy Guy Barnett said it confirms Tasmania’s reputation as a global leader in renewable energy.
“The anticipated increased energy interconnection between mainland Australia and Tasmania will also improve energy security and help put downward pressure on power prices, while enhancing our growing reputation for renewable energy production.”
The Commonwealth and Tasmanian governments have previously provided a combined $95 million to advance these projects.
Key components of the Tasmanian State Energy and Emissions Reduction Deal include:
- The Morrison Government will contribute a further $93.9 million as part of the agreement for the Marinus link project;
- The creation of a joint special purpose corporate vehicle (62.5 per cent shares to Commonwealth & 37.5 per cent shares to Tasmania) that will progress the Marinus Link transmission through to a Final Investment Decision; and
- The agreement as part of the Morrison Government’s Underwriting New Generation Investments (UNGI) program to a scoping and development process for underwriting the first Battery of the Nation project site at Tarraleah that will provide additional dispatchable electricity and energy storage to the mainland.
Battery of the Nation and Marinus Link go hand in hand. Marinus Link will enable the export of an additional 1,500 megawatts of capacity to the mainland.
The Tarraleah redevelopment is a $650 million project that could see early works commence in 2021 and is expected to create 100 new ongoing jobs and 250 jobs during peak construction.
The governments expect to announce more emissions reduction projects as part of the deal in 2021.
The economic benefits of Marinus Link for Tasmania and Victoria are estimated at $2.9 billion.
The Government is working with state and territory governments to establish agreements that accelerate cooperation on energy and emissions reduction projects.
These agreements will help deliver affordable and reliable energy to consumers, while reducing emissions and creating jobs.
In addition to Marinus Link, the Morrison Government is progressing Project EnergyConnect, VNI West, HumeLink and the QNI Interconnector upgrade. This means we are accelerating all major priority transmission projects, creating thousands of new jobs, putting downward pressure on prices and shoring up the future of the grid.
Media release – Rosalie Woodruff MP – Greens Energy Spokesperson 15 December 2020
Marinus Bluster Says Nothing
The Liberals’ latest Marinus Link announcement again fails to give any important information about who would pay for a second interconnector, and how it would impact on Tasmania.
There are multiple future renewable energy options on the table, and Tasmanians deserve to know whether this multi-decade, multi-billion dollar proposal would be the best step for our state to take.
Both Scott Morrison and Peter Gutwein keep spruiking Marinus Link as a crucial part of the coronavirus recovery, but we remain concerned their rush to seal a deal could leave Tasmanians with billions of dollars of debt and an ongoing burden on the state’s economy – which Basslink has been.
Liberal ministers have said repeatedly Tasmania won’t pay more than its ‘fair share’ for Marinus Link, but we are no closer to understanding what that means. The Liberals seem more interested in self-promotion opportunities than in explaining how this multi-billion dollar project would affect Tasmania’s balance sheet for decades.
State and Federal governments are rushing into fast-tracking approval processes for Marinus Link, but they still can’t say how it will be funded. That’s a crucial element to any project, but particularly one that would cost billions of dollars.
If the Government knows who is going to pay for Marinus Link, or how much Tasmania is going to pay for it, they should front up and tell us. If they don’t know, they should hold the bluff and bluster until they’ve got something honest to tell the community.
Senator Peter Whish-Wilson – Greens Senator for Tasmania
This is just another promo for Scomo, without any substance.
A number of independent economic reports question the viability of this project.
Instead of looking for press conference opportunities, the PM should be providing the public with more detail and addressing concerns, especially before tax-payer money is involved.
Media release – David O’Byrne MP, Shadow Treasurer and Minister for Energy, 15 December 2020
Scant detail on Marinus Link still fails to clarify crucial questions – how will it be paid for?
The Prime Minister has today failed to deliver any new information on a pathway forward for the Marinus Link project, including crucial clarity around how the $3.5 billion bill will be paid.
Shadow Energy Minister David O’Byrne said the ‘announcement’ by the Federal Liberal Government in Launceston today was meaningless without specific detail about the future of the project.
“What it does show is that the Morrison Government has no confidence in the Gutwein Government or Energy Minister Guy Barnett to deliver,” Mr O’Byrne said.
“The Prime Minister has effectively expressed no confidence in the Gutwein Government by taking a controlling stake in the special purpose vehicle charged with progressing the project.
“Like most Tasmanians, he clearly doesn’t have any confidence that this government is capable of getting important infrastructure built.
“Tasmanians are right to be sceptical considering just last week we learned that Mr Barnett has not met with or spoken to the Victorian Government about progress of the critical Marinus Link project as he continues on his usual path of inaction.
“The position of the Victorian Government is crucial as to whether Marinus goes ahead – and to Tasmanians avoiding paying higher electricity prices – but Mr Barnett has not so much as picked up the phone.
“Today the Prime Minister has failed to say how it will be paid for.
“He failed to provide a timeline for when it will go ahead.
“It’s shrouded in uncertainty and the Prime Minister’s re-announcement today shows it is no closer to coming to fruition.
“Every project this government touches it fumbles and this is yet another example.
“For Tasmania to become the battery of the nation and for Marinus Link to reach its full potential, Tasmanians require a real commitment and we are just not seeing that.”
Media release – Bob Brown Foundation, 15 December 2020
Morrison’s Marinus Burden on Tasmania – Christine Milne
“More spin and announcements from Prime Minister Morrison today but still no answer as to who will pay for the unnecessary and economically unviable Project Marinus and Battery of the Nation. All these announcements are to build momentum for the idea that these projects are inevitable and going ahead in spite of no cost-sharing agreements being signed for the $7.1billion they are estimated to cost. The only costs being announced are to the taxpayers and people of Tasmania via a $93.9m convertible loan,” said Bob Brown Foundation Director Christine Milne.
“Make no mistake, this is a Debt Debt Debt disaster for Tasmania to finance a white elephant. Remember they said same things about Basslink and they were wrong. How exactly will it drive down electricity prices when the experience is that Tasmania follows Victorian prices because of Basslink? It will be even more so with Marinus? AEMO has included Marinus and Battery of the Nation in its ISP on assumption that Tasmania will overbuild renewable energy at its own cost via a cost sharing arrangement and that energy will be available at low cost to the NEM. It It is an investment that Tasmanians have to build in the first place and work out who will pay for that build,” said Ms Milne.
“Tasmania has 100% renewable energy. The mainland is well on the way to a 100% transition to renewables and batteries are flying down the cost curve to provide storage. Just yesterday Portland Aluminium entered a contract to provide storage and energy services Victorians. Batteries on the mainland have already leapfrogged Tas Hydro storage services. We don’t need to spiral into huge debt and destroy our environment to send energy to the mainland when it is not needed to achieve climate or renewable energy goals. Industrialising the north of the state for private sector profits in wind farms, subsidised from our own pockets, is not in Tasmania’s interests. Already TasNetworks has $2b borrowings, Hydro has signed onerous contracts with Granville Wind and Aurora has signed same with Cattle Hill. Exactly how many more millions are Tasmanians expected to throw at these private sector developments?” concluded Ms Milne.
