Discussions are underway between the country's energy ministers on funding the proposed Marinus Link interconnector project, Tasmanian Energy Minister Guy Barnett says.
Mr Barnett on Monday was out spruiking two new reports relating to the project, one of which he said proved the project would place downward pressure on electricity prices.
"This report proves that there is downward pressure on electricity prices across the nation, not just in Tasmania but in all the mainland states in the national electricity market," he said.
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"This is evidence that Marinus Link will deliver benefits to those jurisdictions."
According to the Project Marinus project conclusion report, the total cost of the project is estimated to be between $3.1 billion to $3.8 billion for two 750-megawatt interconnectors.
It is estimated the first link will be delivered between 2027 and 2031 and the second link between 2029 and 2034.
A decision over finance of the project will be made in 2023.
The report said the factors influencing the economic feasibility of Project Marinus were the timing of coal-fired generation retirement in the energy market, load forecasts, battery storage capability and costs, and gas prices.
All customers are better off if Project Marinus proceeds and costs are shared fairly across the NEM.
- FTI Consulting
FTI Consulting in the report found the national electricity market's current pricing framework was not consistent with the beneficiaries pay principle.
"All customers are better off if Project Marinus proceeds and costs are shared fairly across the NEM," it said.
Mr Barnett said current arrangements and rules to do with the national electricity market was inadequate and outdated, and thus required change.
At present, the two jurisdictions where the interconnectors were to exist would need to pay the full cost of the infrastructure.
"We need a new arrangement which is based on beneficiary pays and fair cost allocation," Mr Barnett said.
He said the federal and state governments agreed the rules needed to change so Tasmania only paid its fair share for the two interconnectors.
Mr Barnett said the matter would again be raised when energy ministers convened in August.
"The federal government has taken a leadership role to ensure fair cost allocation," he said.
"At the moment it's a very antiquated system - the old rules won't apply and be appropriate for this project.
"Where of course with fair cost allocation, the benefits flow through to New South Wales, Queensland, South Australia."
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Political reporter for Australian Community Media, based in Hobart.
Political reporter for Australian Community Media, based in Hobart.
