The Australian Energy Regulator (AER) has today released an Issues Paper in respect of Marinus Link Pty Ltd (MLPL) Stage 1, Part B (construction costs) proposal.
The Issues Paper sets out our initial observations on the proposed construction costs and the procurement process to date. This includes a proposed total construction expenditure of $3,534.3 million ($2023) for stage 1 of Marinus Link.
The Issues Paper also highlights key aspects of the proposal that we are particularly interested to hear from stakeholders to inform our initial draft decision.
We expect to release an initial draft decision in May 2025 on the market tested costs for converter station designs and the high voltage direct current cable system. This is approximately 46% of the total proposed capital expenditure for stage 1 of Marinus Link.
The AER expects a revised proposal from MLPL in July 2025, which includes updated costings on the remaining costs on the balance of works, support activities and risk allowance which are not assessed at the initial draft decision stage. A final decision which combines our assessment of each stage of the decision making process will be published in December 2025.
Concurrent to our ongoing assessment of Marinus Link, we have also released our determination on TasNetworks’ contingent project application for its North West Transmission Development stage 1 early works. Marinus Link and the North West Transmission Development together comprise ‘Project Marinus’.
Invitation for submissions
Interested stakeholders are invited to send submissions to inform our initial draft decision on the construction costs proposal by 18 April 2025. Submissions and requests to make a submission via alternative methods should be sent to ResetCoord
aer [dot] gov [dot] au (resetcoord[at]aer[dot]gov[dot]au).
Public forum
On Thursday, 3 April 2025 at 10:30am (AEDT) we will hold a public forum on Marinus Link’s proposal, the AER’s determination process and highlight key areas of focus within our Issues Paper. You can register your interest on Eventbrite here.
Background
On 29 November 2024, the AER received the construction costs proposal from MLPL for the proposed capital expenditure for the first Marinus Link cable over the 2025-2030 regulatory period.
Marinus Link is a component of ‘Project Marinus’, a single actionable project under AEMO’s 2024 Integrated System Plan. Stage 1 of Project Marinus will deliver a 750 MW interconnector (Marinus Link) between Victoria and Tasmania and associated network upgrades under the North West Transmission Development.
The AER’s assessment will focus on the efficiency and prudency of the forecast construction costs in accordance with the National Electricity Law and National Electricity Rules.
On 3 December 2024, the AER published an updated Commencement and Process Paper setting out a modified process for making a determination on the total construction costs. This includes a two-stage approach with an initial draft decision limited to the converter station equipment design and equipment costs and the high voltage direct cable system costs, with the remaining cost elements assessed in a supplementary draft decision.