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Summary
- The Morrison government has signed a new energy deal with Tasmania.
- It will create multiple jobs and provide affordable and secure power to Tasmania.
The Australian federal government and the state government of Tasmania have signed an energy and emissions reduction deal, as per the 15 December 2020 Australian Prime Minister media release. Besides generating thousands of job opportunities, it is expected to provide reliable, secure, and affordable power to the state and the broader National Electricity Market (NEM).
Image source: https://www.pm.gov.au/
The governments will work in collaboration to improve the connectivity of the state with mainland Australia and the NEM while working on the projects of Marinus Link and Battery of the Nation. This is targeted towards lowering emissions, improving energy security, and keeping prices low.
Prime Minister has affirmed that the projects are a crucial part of the government's JobMaker Plan.
Image source: https://www.pm.gov.au/
The Key Components of the Deal
- The federal government will provide AUD 93.9 million for the Marinus Link project.
- Set up a joint special purpose corporate vehicle to advance the Marinus Link transmission through to a Final Investment Decision. Commonwealth will have a 62.5 per cent shares in the vehicle, while Tasmania will own the remaining 37.5 per cent shares.
- The deal is a part of the Underwriting New Generation Investments (UNGI) program. It is for underwriting the first Battery of the Nation pumped site at Tarraleah to give extra dispatchable electricity and energy storage to the mainland.
Angus Taylor, the Minister for Energy and Emissions Reduction, has stated that the agreement shows the government's pledge towards securing households and businesses in all parts of the country. Moreover, it highlights the efforts towards delivering more reliable and affordable power.
Projects such as Marinus Link and Battery of the Nation will boost the economy by providing job opportunities and delivering a reliable energy system with less electricity price volatility and reduced blackouts risks, he added.
The government is expected to announce more emissions reduction projects in the coming time.
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