Tasmania Approves Undersea Cable Linking Victoria Grid to Cut Power Costs

The Tasmanian Parliament passed the Marinus Link Project Authorisation Bill on 6 July, clearing regulatory hurdles for the 1500-megawatt undersea cable across Bass Strait. The bill affects every electricity consumer in the state by establishing the legal framework for construction and operation of the link between Heybridge in Tasmania and the Victorian mainland.

National energy market changes have prompted the bill now. The project has sat in planning stages for several years while state and federal governments finalised funding shares and environmental conditions. Recent federal announcements on transmission upgrades have aligned timelines, moving the legislation from committee review to passage within the current sitting period.

Daily costs and services for residents

Policy analysts say the cable is projected to allow Tasmanian generators to export surplus power during peak periods and import supply when local hydro levels are low. For households this could mean fewer price spikes in winter months when heating demand rises, particularly for the 120000 customers in the greater Hobart area served by the distribution network. Local advocates note that construction activity around the Heybridge landing site may create short-term roadworks and temporary job opportunities for trades in the north-west region.

The 2025-26 state budget papers record an allocation of infrastructure spending that includes the Tasmanian government's contribution to the cable project. The legislation states that the link must meet existing environmental standards for Bass Strait marine habitats before any seabed work begins. Community voices in the salmon aquaculture sector have asked whether the cable route will overlap with existing lease areas near the north coast.

The government says the policy will see first power flows by 2030 once both ends of the cable are energised. Next steps include final environmental approvals from the Commonwealth and appointment of the construction contractor, with community consultation sessions scheduled in Devonport and Burnie during August.