The Tasmanian Government entered into an agreement with National Grid Australia for the construction of an interconnector between Tasmania and Victoria. The Basslink interconnector runs from Loy Yang in Gippsland, Victoria, across Bass Strait to Bell Bay in northern Tasmania. The 290 km undersea cable component for Basslink is the longest of its type in the world. Basslink commenced commercial operations on 29 April 2006.

The Basslink interconnector is a high voltage, direct current link with a continuous rating of 480 MW, but is capable of operating for periods at higher capacity. The link has a maximun export capacity of 600 MW.

Both the import and export operations are affected by the capability of the Tasmanian electricity system to maintain the system frequency in the event of the loss of the link. The Tasmanian system generally will be able to accommodate the link exporting up to its 600 MW limit. However, as a result of system control issues, import capacity is constrained to a maximum of 480 MW.

The Basslink interconnector enhances security of supply on both sides of Bass Strait; protecting Tasmania against the risk of drought-constrained energy shortages and protecting Victoria and southern states against the forecast shortage of peak load power identified in the NEMMCO Statement of Opportunities.

Further information on Basslink can be found on National Grid Australia’s website at www.nationalgrid.com.au or Hydro Tasmania’s website at www.hydro.com.au/.