After years of planning and regulatory assessments, tangible progress on Marinus Link, the critical electricity and data interconnector between Tasmania and Victoria, is now visible. Preparatory works have officially commenced across Gippsland, Victoria, marking a significant milestone for the multi-billion dollar project ahead of full-scale construction later this year.

Crews have begun mobilising, establishing construction sites, creating access tracks, and conducting further geotechnical and environmental surveys. The activity is centred around Sandy Point, where the undersea cable will make landfall, and Hazelwood in the Latrobe Valley, the location for a new converter station that will connect the interconnector to the Victorian grid.

“This final decision gives us the confidence to take construction into full swing later this year,” said Marinus Link Pty Ltd CEO Stephanie McGregor, following the Australian Energy Regulator’s (AER) final approval of the project’s costs in February 2026.

Marinus Link is a proposed 1500 MW high-voltage direct current (HVDC) cable system, being built in two 750 MW stages. The first stage, which is now underway, involves laying a 345km cable under the Bass Strait and underground across Gippsland. This ‘energy superhighway’ will connect Tasmania’s abundant hydropower and wind resources with the mainland’s National Electricity Market (NEM).

The project is jointly owned by the Commonwealth, Victorian, and Tasmanian governments and is a key component of the Australian Energy Market Operator’s (AEMO) long-term grid development plan.

Once complete, the first stage will provide 750 MW of capacity, enabling Tasmania to export its stored hydro energy when mainland solar and wind generation is low, and import excess renewable energy when it is plentiful. This two-way flow is designed to improve grid stability, reduce reliance on fossil fuels, and ultimately put downward pressure on electricity prices as more renewables enter the market. The project is seen as crucial for strengthening Victoria’s energy security as its coal-fired power stations retire.

The Road to Construction

The journey to this point has been lengthy. The project’s cost and scope have been subject to intense scrutiny. In February 2026, the AER gave its final approval for the project’s costings, greenlighting a capital expenditure of $3.47 billion for the first stage of the interconnector. This decision was the final regulatory hurdle, bookending the planning phase and paving the way for construction to begin.

Local communities in Gippsland can expect to see increased contractor activity, including more traffic and potential temporary changes to road conditions like speed reductions and lane closures during this initial phase. TasVic Greenlink is coordinating the works and has started engaging with regional suppliers for services like signage and quarry materials.

A Critical Piece of the Energy Transition Puzzle

The commencement of works on Marinus Link is a critical step in a series of major transmission projects designed to modernise Australia’s grid for a future dominated by renewable energy. Along with projects like the Hunter Transmission Project and VNI West, Marinus Link will create a more resilient and interconnected NEM, capable of transporting clean energy from new Renewable Energy Zones to where it’s needed most. As households face volatile energy costs, projects that firm up the grid are essential. For those looking to manage their own energy use, understanding how to prepare for seasonal demand, as detailed in guides like Australia’s 2026 Winter Gas Squeeze: How to Prepare Your Home and Avoid Bill Shock, becomes increasingly important.

The project’s ability to store energy via Tasmania’s hydro system acts like a giant battery for the nation, a vital function as the grid absorbs more variable solar and wind power. While home solutions like those explored in 10kWh vs 20kWh Battery in Australia: Which is Better Value After the May 2026 Rebate Changes? are booming, large-scale storage projects like Marinus Link and Snowy 2.0 are indispensable for national energy security. The transition also extends to transport, and the increasing load from electric vehicles, highlighted in guides such as the Cheapest Electric Cars Available in Australia in 2026, further underscores the need for a stronger, smarter grid.