The Australian Government has announced AUD$93.9 million (£52.6m) of new funding for an undersea transmission link project between Western Australia and Tasmania.
The plan is for a 1,500MW undersea electricity cable, named Marinus Link, connecting Burnie in North West Tasmania and the Latrobe Valley in Victoria.
The project will be delivered in two 750MW developments.
The State Energy and Emissions Reduction Deal, which was signed by the Australian and Tasmanian Governments, includes a battery project apart from the Marinus Link.
Both projects are designed to reduce the risk of blackouts.
Prime Minister Scott Morrisson said: “These two projects will maintain downward pressure on electricity prices, so households can keep more of what they earn.
“They will also develop the backbone of a reliable, lower emissions National Electricity Market for the next decade and beyond.
“These projects will create 2,800 jobs which will be crucial as Tasmania continues to recover from the Covid-19 pandemic.”
Tasmania recently achieved 100% self-sufficiency in renewables.
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