Marinus Link should go ahead as quickly as possible, the Australian Energy Market Operator says.
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The $3.8 billion proposal to link Tasmanian renewable energy to the National Electricity Market via undersea cables has been controversial.
Opponents and doubters include some environmental groups, people questioning who would pay and benefit and people opposing some or all wind farm developments.
But AEMO is sold on the Marinus project, which is being progressed by state-owned TasNetworks without a final investment commitment from governments.
The "optimal development path" in AEMO's new, 30-year 2022 integrated system plan (ISP) identified Marinus as one of five projects nationally "immediately actionable which should progress as urgently as possible".
"While delivery dates are as advised by project proponents, earlier delivery would provide valuable insurance for any faster transition or additional benefits to customers".
AEMO chief executive Daniel Westerman said Australia was experiencing a fast and irreversible energy transformation.
"The 2022 ISP informs Australia's energy transformation, based on an optimal development path of essential transmission investments that will efficiently enable low-cost, firmed renewable energy to replace exiting coal generation," he said.
"These transmission projects are forecast to deliver $28 billion in net market benefits ..."
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It defined the most likely future scenario for the National Electricity Market after considering ageing generation plants, technical innovation, economics, government policies, energy security and consumer choice.
"The step change scenario forecasts annual electricity consumption from the grid will double by 2050, as transport, heating, cooking and industrial processes are electrified and 60 per cent of current coal generation exiting by 2030," Mr Westerman said.
"To maintain a secure, reliable and affordable electricity supply ... to 2050, investment is required for a nine-fold increase in grid-scale wind and solar capacity, triple the firming capacity (dispatchable storage, hydro and gas-fired generation) and a near five-fold increase in distributed solar."
He said the need to cost-effectively deliver investment in firmed renewables had gathered momentum.
"We've recently seen market dynamics exhibiting the step change scenario, including accelerated coal-fired power station closures," he said.
"In addition, generation unavailability and high commodity prices further highlight the need to invest in the transmission plan outlined in the ISP to support firmed renewables.
"The ISP will help industry participants, investors, governments and communities plan for the decarbonisation of the power system to deliver low-cost, firmed renewable electricity with reliability and security.
"Importantly, the ISP will help meet state and national climate targets and contribute to economic growth through low-cost, reliable energy."