Prime Minister Scott Morrison was at Cethana Power Station near Sheffield on Wednesday morning to announce an $86 million project to make the interconnector investment ready.

While the Prime Minister would not commit funds to building a second cable, he was very confident about the outcome.

The double announcement means $56 million of federal funds will go toward the interconnector and $30 million will be provided by the Hodgman government, through Hydro Tasmania, to complete the first phase of the Battery of the Nation project.

"We are about stable and reliable jobs and that is generated here by stable and reliable power, which is delivered by the Battery of the Nation project," Prime Minister Morrison said.

Together the projects will help Tasmania create more renewable energy, which can then be sold to Victoria and lower state energy prices.

"The Battery of the Nation would help cut power prices and put an end to the sorts of recent blackouts that families and businesses have had to suffer through," Mr Morrison said.

Premier Will Hodgman said the projects were expected to create up to 3800 direct and indirect jobs during construction and deliver an economic stimulus of up to $7 billion, predominantly to North-Western Tasmania and regional Victoria.

“These initiatives will cement our status as the nation’s renewable energy powerhouse.”

Federal Energy Minister Angus Taylor said Tasmanians wouldn't be paying over the odds to see the Marinus Link in place.

"Marinus [the interconnector] is really helping Victoria, those who are buying the energy are the ones who are going to be paying for the energy in theory."

Mr Taylor said he grew up in a "hydro town" and thought this was a fantastic project for North-West Tasmania.

"When you have great project like this, you create regional jobs that are great jobs. You bring great people into the area, you give jobs to people who are in the area."

Braddon Labor MHR Justine Keay said modelling had found that Tasmania’s Marinus Bass Link and related pumped hydro and wind generation investments only stacked up under Labor’s renewable energy policies.

“The TasNetworks Feasibility Study is clear, the Marinus Bass Link project only stacks up if supported by a high emissions reduction target, like Labor’s 50 percent 2030 renewable energy commitment,” Ms Keay said.

Ms Keay said Labor would designate North-West Tasmania as a renewable energy zone for investments.