One for the price of two 'prudent and efficient'

Project Marinus to link the “battery of the nation” to the mainland, envisioned almost a decade ago as a two-cable system costing $3 billion, is inching closer to one cable for the initial price of two.

The forecast capital expenditure of $1.6 billion for almost half of the works required to construct one cable has been accepted by the Australian Energy Regulator (AER) in an initial draft decision that is now open for consultation.

Marinus Link Pty Ltd welcomed the assessment of forecast cable and converter expenditure as prudent and efficient and said it would submit a revised Revenue Proposal in July, which will address the remainder of forecast capital expenditure relating to a Balance of Works civil construction tender, risk allowance and support activities.

The costs of the project - jointly owned by the federal (49%), Tasmanian (17.7%) and Victorian (33.3%) governments - will be recovered through transmission charges levied on Victorian and Tasmanian electricity customers.

Marinus Link was expected to provide $3.9 billion in economic stimulus for Tasmania and Victoria, according to EY research commissioned in 2023 by the proponent. At that point, construction for Stage 1 was expected to begin in 2025 and take around five years.

AER will hold an online predetermination forum on May 27 to explain the initial draft decision.

EnergyAustralia apologises over carbon offsets

EnergyAustralia apologised in a statement on the settlement of a Federal Court case alleging 400,000 customers were misled about “Go Neutral” products.

The case, brought by advocacy group Parents for Climate, was a first in Australia against a company for carbon neutral marketing and the first time an Australian energy retailer faced legal action for alleged greenwashing.

In its statement, the gentailer said: "EnergyAustralia acknowledges that carbon offsetting is not the most effective way to assist customers to reduce their emissions and apologises to any customer who felt that the way it marketed its Go Neutral products was unclear."

It also name checked Climate Active.

EnergyAustralia offered “Go Neutral Electricity” and “Go Neutral Gas” products whereby carbon credits offset the emissions associated with the energy supply. But paying someone else an “avoidance” credit was not equivalent to removing the emissions generated to supply the electricity and gas, Parents for Climate argued.

“Burning fossil fuels creates greenhouse gas emissions that are not prevented or undone by carbon offsets. This could have been made clearer to customers,” according to the joint statement.

EnergyAustralia buys gas and electricity from the open market (where the emissions are Scope 3 emissions), and in December said under "best practice guidance" high integrity offsets would be required to mitigate residual emissions associated with its ambition of achieving net zero for Scope 3 by 2050.

The Australia Institute has called for the Climate Active certification scheme to be referred to the ACCC and the National Audit Office for alleged conflicts of interest, administrative failures and compliance issues.

Carbon credits remain a legislated mechanism for reducing greenhouse gas emissions, particularly the last slice of hard-to-abate industrial emissions.

EnergyAustralia said its future focus was “firmly on direct decarbonisation initiatives” for customers, including a bring-your-own-battery virtual power plant, rooftop solar and battery installation, and a community battery program covering 13 NSW postcodes.

It withdrew its “Go Neutral” products for new customers in November.

Vic transmission plan cautiously welcomed

Victoria mapped out a plan to exit coal and plug in offshore wind, with seven renewable energy zones (REZs) and four new transmission lines.

The zones covering around 7% of the state are designed to coordinate the onshore infrastructure needed to support new renewable energy projects and connect offshore wind to the grid.

The plan comes as Victoria prepares for the closure of EnergyAustralia’s ageing Yallourn coal fired power plant in 2028 and the 2035 closure of AGL’s Loy Yang A.

Andrew Bray, National Director RE-Alliance warned the plan needed to be well communicated so various communities understood how the rollout would work in places they live.

The deadline for feedback on the draft plan is June 24, with the final plan expected to be released late 2025. VicGrid is holding a webinar for industry on May 27.