Hydro Tasmania today welcomed the announcement by the Australian, Tasmanian and Victorian governments that they would proceed with investment in Marinus Link.

Hydro Tasmania CEO, Rachel Watson, said Marinus Link and the North-West Transmission Development were critical investments in Tasmania’s energy future.

“A modern energy system that meets growing demand, keeps prices as low as possible and mitigates climate risks will require a combination of interconnection, transmission and flexible hydro capacity working in concert with wind and solar,” Ms Watson said.

“Marinus will deliver additional resilience during dry conditions, allowing Hydro Tasmania to strategically manage water levels in our dams.

“And critically, it will help attract the new wind and solar generation we need to complement our hydro network and grow the state’s generation capacity.

Ms Watson said the investment would also unlock greater access to the National Electricity Market (NEM) to increase revenue returns and bolster the Tasmanian budget.

"When we trade electricity, we buy and sell for short periods that generally offset each other over time. It doesn’t impact energy availability in Tasmania.

“We take excess power from the mainland when their wind and solar are working overtime and save the precious water in our dams. We sell energy back when demand spikes and the price goes up.

“Hydro Tasmania's profits are returned to the people of Tasmania through our dividend, so the Government can spend more on vital infrastructure such as schools, hospitals and housing.”