[3] In response to the resulting energy supply challenges, the Australian and Tasmanian governments commissioned a study into the feasibility of a second interconnector in April 2016.
The Business Case for Marinus Link is positive and demonstrated that work should continue into the ‘Design and Approvals’ phase, to deliver a ‘shovel ready’ Marinus Link project in time to meet the needs of a National Electricity Market (NEM), which is undergoing a rapid and significant transition to a low emissions future.
The Design and Approvals phase is timed to proceed in accordance with timeframes envisaged in the Australian Energy Market Operator's (AEMO) 2020 Integrated System Plan.
According to the Australian Energy Regulator (AER): “The purpose of the RIT-T is to identify the credible option that maximises the present value of net economic benefit to all those who produce, consume and transport electricity rules.” The role of the RIT-T is to undertake a cost benefit analysis focusing on different technical solutions by looking in detail at engineering aspects, refining costs, considering alternate options, and staging.
The RIT-T assesses the economic and technical impact of, and preferred timing for, all major network investments in the national energy market (NEM).
TasNetworks received feedback on the PADR for several months post-release, as part of the RIT-T consultation process, including briefings in Melbourne, Sydney and Hobart in early 2020.
The Supplementary Analysis Report responds to stakeholder feedback received on the PADR analysis and takes into consideration the updated scenarios, inputs and assumptions of AEMO's 2020 Integrated System Plan The publication of this report marks the culmination of the Project Marinus RIT-T process, which began in 2018 with the publication of the PSCR.
The independent modelling conducted for the PACR, completed by Ernst & Young, also supports the establishment of regulated revenue streams for Marinus Link and North West Transmission Developments, with the project providing greater benefits to the NEM than its cost.
The independent Wholesale Pricing Report shows that Marinus Link is able to exert downward pressure on wholesale electricity prices because it enhances the NEM’s access to Tasmania’s low cost, high volume dispatchable energy resources including latent hydro capacity, high quality wind resources, and deep energy storage capability.