CEFC to invest in visionary Marinus Link project in largest-ever transaction

3 September 2025

The CEFC has substantially increased its support for the modernisation of Australia’s clean energy grid, with a commitment expected to be $3.8 billion to support delivery of Marinus Link, the second electricity interconnector between Tasmania and Victoria.

The CEFC investment, the biggest since it began investing, provides critical backing for the 750 MW Stage 1 of Marinus Link, the undersea and underground electricity and data interconnector between North West Tasmania and the Latrobe Valley in Victoria.

The interconnector will support the two-way exchange of Tasmania’s vast hydropower and wind developments with the excess solar and wind generated from abundant renewable energy assets in Victoria and NSW.

With its capacity to distribute Australia’s abundant renewable energy resources to where they are needed, Marinus Link is truly a vital part of Australia’s clean energy infrastructure of the 21st century.

Ian Learmonth

CEFC CEO

The CEFC’s commitment is expected to be $3.8 billion inclusive of capitalised interest during construction. The final amount of concessional finance is subject to the regulator's final determination on project costs.

The CEFC investment, in the form of long-term concessional debt finance, is part of a broader funding package that includes equity investment from the Australian, Tasmanian and Victorian Governments, as co-owners of Marinus Link.

CEFC CEO Ian Learmonth said: “Marinus Link is another critical piece in the renewable energy transformation of Australia’s electricity grid. As a specialist green energy investor, the CEFC is committed to using our capital to accelerate the delivery of nation building projects of this scale. As with all our transmission-related investments, we have taken care to structure our finance in a way that maximises the benefits to consumers, by lowering project borrowing costs, which in turn will lower overall project costs.

“With its capacity to distribute Australia’s abundant renewable energy resources to where they are needed, Marinus Link is truly a vital part of Australia’s clean energy infrastructure of the 21^st century.”

Marinus Link CEO, Stephanie McGregor said: “The ability to access the concessional loan through the CEFC enables Marinus Link to deliver this critical infrastructure at the lowest possible cost to consumers.

“The CEFC’s long term concessional finance, along with low-returning equity from the government shareholders, is expected to deliver $900 million in benefits to Tasmanian and Victorian electricity consumers during the first five years of the project’s operation. It means that the concessional finance will reduce the impact of transmission-related consumer costs by 45 per cent¹.”

Marinus Link is the seventh project to be financed through the CEFC Rewiring the Nation (RTN) Fund, with the total value of CEFC RTN Fund commitments exceeding $7 billion, across grid modernisation projects in NSW, Victoria, the ACT and Tasmania. The projects include the Central-West Orana Renewable Energy Zone, HumeLink and elements of the Victoria-NSW Interconnector.

CEFC RTN Chief Investment Officer Paul McCartney added: “The Rewiring the Nation Fund was created to spearhead investment in transmission infrastructure, long duration storage, electricity distribution network infrastructure and distributed energy resources. Our backing for Marinus Link will deliver substantial investment and economic benefits across large parts of the Australian economy, with cleaner, more affordable renewable energy replacing ageing coal-fired generators as they exit the electricity system.

“This visionary project will enable Tasmania to share its substantial hydro power energy and wind resources with the much larger National Energy Market, helping firm the grid. It will also provide Tasmanian consumers with access to abundant low cost solar and wind energy from the mainland, as well as enhanced energy security. This is a win-win for both ends of Marinus Link. This significant investment of CEFC concessional finance will mean Marinus Link will cost less to build and operate, lowering the impact on energy bills.”

Marinus Link includes high voltage direct current cables, fibre optic cables, a communications station, and converter stations at each end. The cables span 345 kilometres, including 255 kilometres of undersea cables across Bass Strait and 90 kilometres of underground cables in Gippsland, Victoria.

Mr Learmonth added: “Australia has embarked on an historic transformation of our energy system, driven by the advanced retirement of aging coal-fired power stations and the urgent need to transition our economy to a net zero emissions future. Switching to a reliable and secure renewable energy electricity system is the first critical step in this transition, paving the way for widespread electrification in our homes and businesses, on our roads and our farms.

“In investing on behalf of the Australian Government, the CEFC RTN Fund has a particular focus on using our capital to deliver these complex energy projects in a manner that reduces costs while accelerating project timelines.”

Marinus Link is listed as a priority for decarbonisation on the Australian Government’s National Renewable Energy Priority List and is classified as urgent in the Australian Energy Market Operator’s 2024 optimal plan for the national grid. Construction is expected to commence in 2026, with Stage 1 scheduled for completion by 2030².

1 Analysis based on data in the relevant AER application

2 https://www.marinuslink.com.au/2025/08/marinus-link-welcomes-a-positive-final-investment-decision/