Australia’s Multi-Billion Dollar Undersea Power Cable Hits Financial Close
(Bloomberg) -- Australia reached financial close on a multibillion dollar undersea power cable project linking the mainland to renewable generation on the island state of Tasmania.
The first stage of the 345-kilometer (214-mile) Marinus Link secured A$3.8 billion ($2.5 billion) funding from the Clean Energy Finance Corporation, or 80% of its total cost, with the Commonwealth, Tasmania and Victoria to jointly fund the remainder, the company said Wednesday. Construction is due to start in 2026.
The high-voltage cable will allow Tasmania to tap excess solar generation on the mainland during the day, while sending power in the opposite direction at night using the island’s vast hydro resources. By easing pressure on the mainland’s coal fleet, the project is expected to support the federal government’s goal of more than doubling renewable energy generation to 82% of the total by 2030
The initial stage will comprise 750 megawatts of capacity, with Hitachi Energy Ltd. contracted to supply the converters and Prysmian SpA providing and installing the cables. Like other transmission projects across the country, Marinus has been dogged by rising costs. It had originally been designed as a two-cable system, but budget blowouts last year forced planners to halve capacity and delay completion
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