Rewiring the Nation: Victoria, Tasmania sign agreements

Rewiring the Nation: Victoria, Tasmania sign agreements
Rewiring the Nation: Victoria, Tasmania sign agreements

The Albanese Government’s Rewiring the Nation plan will fast-track Victorian Renewable Energy Zones (REZ) and offshore wind development to create new energy jobs across Victoria, Tasmanian projects to unlock cleaner, cheaper and more secure energy and put downward pressure on prices.

The Commonwealth and Victoria have today signed an agreement to jointly fund Victorian offshore wind projects, REZs, and the Victoria-New South Wales Interconnector (VNI West) KerangLink. The Commonwealth, Victoria and Tasmania have also signed agreements on the Marinus Link interconnector.

The agreement between Victoria and the Commonwealth sets out:

  • $1.5 billion of concessional financing from Rewiring the Nation available for REZ projects in Victoria, including offshore wind projects;
  • A commitment to coordinate Victorian and Commonwealth regulatory processes to support the rapid development of the Victorian offshore wind industry;
  • Rewiring the Nation, through the Clean Energy Finance Corporation, will provide a concessional loan of $750 million for VNI West to ensure it is completed by 2028;
  • Victoria will contribute equally with the Tasmanian and Commonwealth Governments to a total 20 per cent of project equity to deliver Marinus Link.
  • Together, the Victorian REZ and offshore wind development will deliver new renewable power, driving down power prices, creating jobs and supporting reliability of electricity supply.

    This follows the Commonwealth’s recent consultation on an offshore wind development zone off Gippsland – the first in the nation.

    This announcement will supercharge regional jobs, with VNI-West KerangLink to unlock 4,000 MW of new power generation, supporting more than 2,000 direct jobs during construction and generating $1.8 billion in net market benefits – including for electricity users.

    Marinus Link is also set to create 1,400 jobs in Victoria, and attract $1.5 billion in investment to the Gippsland region.

    The Albanese and Rockliff Governments have also signed a Partnership to jointly fund the critical Marinus Link transmission project, delivering renewable energy generation and storage for the mainland through Tasmania’s Battery of the Nation projects, and unlocking the next wave of renewable energy development in Tasmania, attracting investment and jobs in the state.

    The project comprises two under-sea transmission cables connecting Tasmania and Victoria. It will create 1,400 jobs in Tasmania during peak construction, 1,400 jobs in Victoria, and deliver up to $4.5 billion in positive net market benefits, including to electricity users. This Partnership will supercharge investment in Battery of the Nation, which is expected to deliver up to 670 direct jobs across Tasmania.

    Marinus Link will cut at least 140 million tonnes of CO2 to 2050, the equivalent of taking approximately one million cars off the road.

    Marinus has been in planning since 2016, and today’s agreement, less than six months since the federal election, overcomes major barriers and delivers substantial benefits to Tasmania and the mainland.

    Australia’s electricity system is changing rapidly, but progress on critical transmission projects stalled under the former federal Government. The Albanese Labor Government is getting on with the job and working closely with states to deliver these vital projects on time and at lowest cost.

    The Australian Energy Market Operator’s (AEMO) Integrated System Plan is the roadmap for Australia’s future grid – and Rewiring the Nation investments are guided by this blueprint to ensure the right projects are built at the right time.

    October 19, 2022