The Tasmanian Liberal government is poised to make a final investment decision on the Marinus Link interconnector project, a move that follows extensive negotiations with the Commonwealth. However, the decision, set against the backdrop of a caretaker government, requires consultation with the Labor opposition. Premier Jeremy Rockliff has given Labor leader Dean Winter until 9 a.m. tomorrow to express his support.
Despite the urgency from the Tasmanian government, the Commonwealth has extended its deadline for a decision to August 2. This extension adds another layer of complexity to the already contentious discussions surrounding the project.
Political Tensions and Accusations
On Tuesday, Mr. Winter and crossbenchers were briefed on the project, receiving thousands of pages of information in hard-copy form. The briefing, described by Greens leader Rosalie Woodruff as “a sham,” has sparked accusations of insufficient time for thorough evaluation. Independent candidate Peter George criticized the process for lacking respect towards crossbenchers, while Kristie Johnston labeled it a “document dump.”
Amid these tensions, the Tasmanian parliament’s dissolution for the election has placed the government in “caretaker mode.” Labor has accused the Liberals of breaching caretaker conventions over two decisions, a claim that adds fuel to the political fire.
Financial Concerns and Project Details
The Marinus Link project, which aims to enhance the mainland’s access to Tasmania’s renewable energy resources, has faced scrutiny over its financial implications. Initially estimated at a higher cost, the project has seen a $1.7 billion increase, prompting a reduction from two cables to one. This decision has halved its capacity from 1.5 gigawatts to 750 megawatts.
The project’s estimated cost has increased due to increased demand for subsea cables in Europe.
Labor, the Greens, and independents have raised concerns about potential hikes in power prices for Tasmanian consumers. The government has promised to release a whole-of-state business case by the end of June, with an investment decision expected by the end of July.
Consultation and Caretaker Conventions
In a letter to Mr. Winter, Premier Rockliff emphasized the urgency of the decision, stating that not proceeding with a positive final investment decision (FID) would effectively mean a negative one. He requested a response by Thursday morning, a timeline Mr. Winter has deemed unreasonable.
“Let me be clear: I won’t be bullied into making a decision like that quickly,” Mr. Winter stated.
While Labor supports the Marinus Link in principle, Mr. Winter insists on more time to assess the information. Meanwhile, incoming Liberal MP Bridget Archer has defended the consultation process, asserting it aligns with caretaker conventions. Energy Minister Nick Duigan highlighted the benefits of the new deal with the Commonwealth, assuring that it would protect power prices without additional costs to the state.
Implications and Future Steps
The Marinus Link project represents a significant step in Tasmania’s renewable energy strategy, yet its path is fraught with political and financial challenges. As the deadline approaches, the Tasmanian government must navigate these complexities while ensuring transparency and public trust.
Looking forward, the outcome of this decision will have lasting implications for Tasmania’s energy landscape and its political climate. The coming days will be crucial in determining whether the project moves forward and how it will impact both the state and its residents.
