FACT SHEET – 1500 MW MARINUS LINK – DEC 2020
DELIVERING LOW COST, RELIABLE & CLEAN ENERGY Marinus Link is a proposed 1500 megawatt (MW) capacity undersea and underground electricity and telecommunications connection that links North West Tasmania to Victoria. It requires further development of the transmission network in North West Tasmania. TasNetworks completed a positive feasibility and business case assessment for Marinus Link and supporting North West Transmission Developments in December 2019. The Australian Renewable Energy Agency (ARENA) & the Tasmanian Government supported this work. TasNetworks is now undertaking the Design & Approvals phase with funding support provided by the Australian Government. THE NATIONAL ELECTRICITY MARKET IS CHANGING
Coal generation continues to retire with variable renewable generation, such as wind and solar, increasingly taking its place. To support these variable energy sources, the National Electricity Market (NEM) also needs ‘dispatchable’ energy. This is energy capacity that is on-demand, such as hydro electricity and pumped hydro long duration energy storage resources.
Tasmanian wind Capital cost of has a 25% higher pumped hydro energy output energy systems and capital cost in Tasmania is is comparable 30% lower
COMPARED WITH MAINLAND AUSTRALIA
Tasmania has latent, clean and dispatchable hydro capacity ready to use Tasmania has some of Australia’s most cost-effective renewable energy and dispatchable capacity resources.
AT LEAST AT LEAST AT LEAST
MW MW MW OF COAL-FIRED OF NEW GRID-SCALE OF NEW DISPATCHABLE GENERATORS ARE EXPECTED RENEWABLES TO REPLACE RESOURCES TO FIRM THE TO RETIRE BY 2040 COAL-FIRED GENERATORS GRID-SCALE RENEWABLES
Figures based on AEMO 2020 ISP central scenario
Marinus Link and supporting transmission help Australia’s transition to a low emissions future by unlocking Tasmania’s renewable energy and long-duration energy storage resources to provide dispatchable energy when it’s needed.
Together they will help address Australia’s energy needs by supporting:
LOW COST Wind, solar, hydro and storage
ENERGY TRILEMMA
LOW SECURE & EMISSIONS RELIABLE CO2 reductions + Dispatchable emissions hydro + pumped targets hydro storage A POSITIVE BUSINESS CASE ASSESSMENT
TasNetworks’ analysis shows that Marinus Link and supporting transmission:
◊ Have a positive business case assessment ◊ Are technically feasible and commercially viable for up to 1500 MW and will provide greater benefits than costs ◊ Could be in service from the late 2020s ◊ Will create billions in economic growth, thousands of jobs, and be a source of skills, training and workforce development potential in Tasmania and regional Victoria For more information see the Project Marinus Business Case Assessment Report, available here: marinuslink.com.au/business-case-assessment PROJECT COST ESTIMATE
Analysis to date estimates Marinus Link and supporting transmission would have a total project cost of around $3.5 billion (in 2019 dollars). This estimate includes allowances to reflect the present level of accuracy and contingencies that may arise. A PRIORITY NATIONAL INFRASTRUCTURE PROJECT
Project Marinus has been recognised as a;
◊ National priority project by the Australian Government to stimulate economic recovery in the wake of COVID-19 ◊ High priority initiative by Infrastructure Australia ◊ Major Infrastructure Development by the Tasmanian Government ◊ Australian Energy Market Operator Integrated System Plan 2020 actionable project, to be shovel ready from 2023 BROADER BENEFITS
Marinus Link and supporting transmission will add significant economic value to regional communities in Tasmania and Victoria based on expert modelling.
VICTORIA TASMANIA
UP TO UP TO $ $ BN BN ECONOMIC STIMULUS ECONOMIC STIMULUS CONSTRUCTION + CONSTRUCTION + OPERATION OPERATION AND AND 1400 1400 JOBS JOBS DIRECT AND INDIRECT JOBS AT DIRECT AND INDIRECT JOBS AT PEAK CONSTRUCTION PEAK CONSTRUCTION
Marinus Link and supporting transmission unlocks a pipeline of investment in renewable energy and long-duration energy storage developments. Together, these developments will provide an estimated $7.1 billion and an additional 2,350 jobs.
Jobs figure is the estimated average of direct and indirect jobs at peak construction for the period spanning from 2030 to 2034.
Marinus Link enables the National Electricity Market to save at least * 70 million tonnes of CO2
*The emission saving is calculated based on the current carbon emission intensity of the NEM. Commissioning of Marinus Link unlocks the achievement of the 200 per cent Tasmanian Renewable Energy Target (10,500 megawatt hours of additional renewable generation by 2040). WORKING OUT WHO PAYS
New pricing arrangements will need to be agreed to achieve fair pricing outcomes. A fair cost allocation methodology for interconnectors is being investigated by the Energy National Cabinet Reform Committee. An appropriate pricing outcome is required for Marinus Link and supporting transmission to proceed. Marinus Link proceeding will see downward pressure on wholesale prices. 1 2 3 4 Feasibilty and Business Manufacturing and Project Design and Approvals Operations Phases Case Assessment Construction
Project Duration 2 years ~ 3 - 4 years ~ 4 - 7 years ~ 40+ years
Stage 1 We are here Stage 2 WHERE WILL IT GO?
The proposed routes seek to minimise adverse impacts on landowners, businesses and conservation areas whilst balancing key objectives of cost, efficiency and constructability. To date, work indicates that the proposed routes for Marinus Link and supporting transmission are feasible.
Melbourne
Latrobe Valley
Proposed North West Transmission Developments
HVDC route (indicative location only)
Burnie
Hampshire Sheffield Substation Launceston Staverton
Palmerston Substation 1 2 3 4 Feasibilty and Business Manufacturing and Project Design and Approvals Operations Phases Case Assessment Construction
Project Duration 2 years ~ 3 - 4 years ~ 4 - 7 years ~ 40+ years
Stage 1 We are here Stage 2
TECHNICAL SPECIFICATIONS
The favoured technical design is for a 1500 MW High Voltage Direct Current (HVDC) interconnector, built in two 750 MW links and supported by High Voltage Alternating Current (HVAC) transmission network developments in North West Tasmania. The design includes modern HVDC cable and converter station technologies that support reliable power transfers across Bass Strait.
VICTORIA TASMANIA CONNECTS IN THE LATROBE VALLEY CONNECTS IN THE BURNIE AREA
CONVERTER CONVERTER STATIONS STATIONS
500 kV AC <> DC Transition DC <> AC 220 kV station
HVAC HVAC EXISTING BASS STRAIT SUPPORTING TRANSMISSION HVDC LAND CABLE HVDC LAND CABLE TRANSMISSION ~90 KM UNDERGROUND ~1 KM UNDERGROUND
~250 KM HVDC SUBSEA CABLE Marinus Link and supporting transmission have a positive business case assessment. Work continues to progress this critical national infrastructure to being a ‘shovel ready’ project. TasNetworks is committed to working with stakeholders and local communities and to providing opportunities for feedback and comment on the project.
GET IN TOUCH
To learn more about Marinus Link, share your ideas and find out about upcoming stakeholder and community engagement events visit marinuslink.com.au email [email protected] or call 1300 765 275 VICTORIA TASMANIA CONNECTS IN THE LATROBE VALLEY CONNECTS IN THE BURNIE AREA
CONVERTER CONVERTER STATIONS STATIONS
500 kV AC <> DC Transition DC <> AC 220 kV station
HVAC HVAC EXISTING BASS STRAIT SUPPORTING TRANSMISSION HVDC LAND CABLE HVDC LAND CABLE TRANSMISSION ~90 KM UNDERGROUND ~1 KM UNDERGROUND
~250 KM HVDC SUBSEA CABLE FACT SHEET – 1500 MW MARINUS LINK – DEC 2020
1 2 3 4 Feasibilty and Business Manufacturing and Project Design and Approvals Operations Phases Case Assessment Construction
Project Duration 2 years ~ 3 - 4 years ~ 4 - 7 years ~ 40+ years Marinus Link and supporting transmission have a positive business case assessment. Stage 1 We are here Work continues to progress this critical Stage 2 national infrastructure to being a WHERE WILL IT GO? ‘shovel ready’ project. TasNetworks is
The proposed routes seek to minimise adverse impacts committed to working with stakeholders on landowners, businesses and conservation areas whilst TECHNICAL and local communities and to providing balancing key objectives of cost, efficiency and constructability. DELIVERING LOW COST, To date, work indicates that the proposed routes for SPECIFICATIONS opportunities for feedback and comment Marinus Link and supporting transmission are feasible. on the project. RELIABLE & CLEAN ENERGY The favoured technical design is for a 1500 MW High Voltage Melbourne Direct Current (HVDC) interconnector, built in two 750 MW links and supported by High Voltage Alternating Current
Latrobe (HVAC) transmission network developments in North West Valley Tasmania. The design includes modern HVDC cable and GET IN TOUCH converter station technologies that support reliable power To learn more about Marinus Link, share your ideas and find transfers across Bass Strait. out about upcoming stakeholder and community engagement events visit marinuslink.com.au email [email protected] Proposed North West Transmission or call 1300 765 275 Developments VICTORIA TASMANIA HVDC route CONNECTS IN THE LATROBE VALLEY CONNECTS IN THE BURNIE AREA (indicative location only)
CONVERTER CONVERTER STATIONS STATIONS
500 kV AC <> DC Transition DC <> AC 220 kV station
HVAC HVAC EXISTING BASS STRAIT SUPPORTING Burnie TRANSMISSION HVDC LAND CABLE HVDC LAND CABLE TRANSMISSION ~90 KM UNDERGROUND ~1 KM UNDERGROUND Hampshire Sheffield Substation Launceston ~250 KM HVDC SUBSEA CABLE Staverton
Palmerston Substation Marinus Link is a proposed 1500 megawatt (MW) capacity undersea and underground electricity and telecommunications A POSITIVE BUSINESS BROADER BENEFITS connection that links North West Tasmania to Victoria. It Tasmania has some of Australia’s most Marinus Link and supporting transmission will add requires further development of the transmission network in CASE ASSESSMENT significant economic value to regional communities in North West Tasmania. TasNetworks completed a positive cost-effective renewable energy and TasNetworks’ analysis shows that Marinus Link and Tasmania and Victoria based on expert modelling. feasibility and business case assessment for Marinus Link dispatchable capacity resources. supporting transmission: and supporting North West Transmission Developments in Have a positive business case assessment December 2019. The Australian Renewable Energy Agency ◊ VICTORIA TASMANIA (ARENA) & the Tasmanian Government supported this work. Are technically feasible and commercially viable for up to ◊ UP TO UP TO TasNetworks is now undertaking the Design & Approvals 1500 MW and will provide greater benefits than costs $ $ phase with funding support provided by the Australian ◊ Could be in service from the late 2020s BN BN Government. AT LEAST AT LEAST AT LEAST ECONOMIC STIMULUS ECONOMIC STIMULUS ◊ Will create billions in economic growth, thousands of CONSTRUCTION + CONSTRUCTION + MW MW MW OPERATION OPERATION jobs, and be a source of skills, training and workforce AND AND OF COAL-FIRED OF NEW GRID-SCALE OF NEW DISPATCHABLE GENERATORS ARE EXPECTED RENEWABLES TO REPLACE RESOURCES TO FIRM THE development potential in Tasmania and regional Victoria TO RETIRE BY 2040 COAL-FIRED GENERATORS GRID-SCALE RENEWABLES THE NATIONAL For more information see the Project Marinus Business Case 1400 1400 Figures based on AEMO 2020 ISP central scenario JOBS JOBS Assessment Report, available here: ELECTRICITY MARKET IS DIRECT AND INDIRECT JOBS AT DIRECT AND INDIRECT JOBS AT marinuslink.com.au/business-case-assessment PEAK CONSTRUCTION PEAK CONSTRUCTION Marinus Link and supporting transmission help Australia’s CHANGING Marinus Link and supporting transmission unlocks transition to a low emissions future by unlocking Tasmania’s a pipeline of investment in renewable energy and Coal generation continues to retire with variable renewable renewable energy and long-duration energy storage resources PROJECT COST ESTIMATE long-duration energy storage developments. generation, such as wind and solar, increasingly taking its to provide dispatchable energy when it’s needed. Analysis to date estimates Marinus Link and supporting Together, these developments will provide an place. To support these variable energy sources, the National transmission would have a total project cost of around $3.5 estimated $7.1 billion and an additional 2,350 jobs. Electricity Market (NEM) also needs ‘dispatchable’ energy. This is billion (in 2019 dollars). This estimate includes allowances to energy capacity that is on-demand, such as hydro electricity and Together they will help address Australia’s energy needs Jobs figure is the estimated average of direct and indirect jobs at reflect the present level of accuracy and contingencies that peak construction for the period spanning from 2030 to 2034. pumped hydro long duration energy storage resources. by supporting: may arise. Marinus Link enables the National Electricity Market to Tasmanian wind Capital cost of has a 25% higher pumped hydro LOW COST save at least energy output energy systems * and capital cost in Tasmania is Wind, solar, hydro A PRIORITY NATIONAL 70 million tonnes of CO2 is comparable 30% lower and storage
INFRASTRUCTURE *The emission saving is calculated based on the current carbon emission intensity of the NEM. Commissioning of Marinus Link unlocks the achievement of the 200 per cent Tasmanian PROJECT Renewable Energy Target (10,500 megawatt hours of additional renewable generation by 2040). WORKING OUT WHO PAYS Project Marinus has been recognised as a; New pricing arrangements will need to be agreed COMPARED ◊ National priority project by the Australian Government to WITH MAINLAND ENERGY to achieve fair pricing outcomes. A fair cost TRILEMMA stimulate economic recovery in the wake of COVID-19 AUSTRALIA allocation methodology for interconnectors is ◊ High priority initiative by Infrastructure Australia being investigated by the Energy National Cabinet Major Infrastructure Development by the Tasmanian ◊ Reform Committee. An appropriate pricing outcome Government is required for Marinus Link and supporting LOW SECURE & Australian Energy Market Operator Integrated System Plan Tasmania has ◊ transmission to proceed. Marinus Link proceeding latent, clean and EMISSIONS RELIABLE 2020 actionable project, to be shovel ready from 2023 dispatchable CO2 reductions + Dispatchable will see downward pressure on wholesale prices. hydro capacity emissions hydro + pumped ready to use targets hydro storage