APA Group is progressing with the Australian Energy Regulator (AER) to make Basslink a regulated asset, supporting Tasmania’s ambition as a producer for renewable energy.
Acquired by APA Group in 2022, Basslink will be in line with other interconnectors in the National Electricity Market (NEM) once it becomes a regulated asset.
“Basslink’s transition to a regulated asset would bring surety to the sustainable flow of electricity between Tasmania and Victoria,” Tasmania Minister for Energy and Renewables Guy Barnett said.
“It will also mean that, for the first time, Victoria will pay for a share of the benefits accruing from the interconnector.
“Regulation provides an open, transparent process around driving those outcomes.”
When purchased in October 2022, APA Group managing director Adam Watson said Basslink will provide energy security and reliability.
“Our vision for Basslink is to safeguard its critical role of providing energy security and affordability to Tasmania while harnessing its potential to drive a lower emissions future,” Watson said at the time.
“Everyone wants to see the cable put on a sustainable footing and as a leading Australian energy infrastructure business, APA is proud to be part of the solution.”
Minister Barnett said the expected determination will be in late 2024.
“APA has proposed a market size approach to cost allocation that will see Victoria wear 90 per cent of the cost allocation,” Barnett said.
“The Tasmanian Government will submit to the AER that the market size model is adopted, noting that all options presented see Tasmania being better off.”
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