“This is a big deal:” Labor rolls out package for offshore wind, Marinus and Victoria renewables

Giles Parkinson 19 October 2022

The federal Labor government has rolled out the first of its $20 billion Rewiring the Nation program, including a multi-billion package to support offshore wind, pumped hydro in Tasmania, two major transmission links and new renewable energy zones.

The big ticket items from the two deals – negotiated with the Tasmania Liberal and Victoria Labor governments – include $1 billion in low cost finance to support of the contested Marinus Link, along with pumped hydro development and local network upgrades.

Victoria will contribute equally with the Tasmanian and Commonwealth Governments to provide a total of 20 per cent of the project equity needed to deliver Marinus Link.

There will be a further $1.5 billion of concessional finance from Rewiring the Nation available for renewable energy zones in Victoria, including offshore wind, where the two governments will fast track regulatory processes to support the rapid development of the Victorian offshore wind industry.

The $1.5 billion includes a concessional loan of $750 million for the VNI West transmission project to ensure it is completed by 2028.

Both Marinus and VNI West are part of the essential grid expansions cited by the Australian Energy Market Operator in its Integrated System Plan, the 30-year blueprint that maps out the path to an initial 80 per cent of renewables by 2030.

However, both transmission links have faced criticism from environmental groups, including former Greens leaders Bob Brown and Christine Milne in Tasmania, and some energy analysts about their environmental impact and their value for money.

Other analysts say Australia has little hope of reaching those ambitious renewable targets without the investment in multiple major transmission projects, particularly given the logistical and supply challenges, along with connection and integration.

“This is the biggest announcement of a Commonwealth investment in energy generation and transmission since the original snowy mountain skiing back in the 1940s,” federal energy minister Chris Bowen said in an interview on ABC Radio on Wednesday morning.

“And this is really important because we have 86 months to 2030 to reduce our emissions.

“Marinus is really important because it means that Tasmania which is currently at 100% renewables will now have the opportunity to get to 200% renewables and share that extra capacity with the mainland.

“This is a big deal. It’s been talked about for a long time, but we’re actually getting on with it.”

More to follow