TasNetworks' Marinus Link proposal has formally won the support of the Tasmanian Chamber of Commerce.
The project, developed by TasNetworks, would see the installation of two 750 megawatt cables laid across the Bass Strait for energy transmission, complementing the Basslink interconnector.
TCCI chief executive Michael Bailey said the project presented the state with great employment opportunities and business growth over 50 years.
He said it was important that the project was funded fairly.
"We see the fair cost allocation as being the best way forward which means that Tasmanians should pay only for their fair share of this project," Mr Bailey said.
Energy Minister Guy Barnett said Project Marinus was going through the design and approval phase.
He said a final investment decision would be arrived at in 2024 after which time construction would be expected to start.
Mr Barnett said Marinus Link would help stabilise the national electricity grid and help reduce carbon emissions.
"Project Marinus will cut at least 70 million tonnes of CO2 emissions by 2040, the equivalent of taking about 500,000 cars off the road," he said.
Meanwhile, Labor's energy spokesman Dean Winter on Monday accused Mr Barnett of having plans to mothball the Tamar Valley Power station.
"It's simply unbelievable that the minister has chosen to ignore his own energy security taskforce and decided to mothball this vital energy asset," he said.
Minister Barnett needs to explain why this decision has been made. He is happy to talk about hydrogen, Marinus and other new projects but fails to mention the fact he is mothballing an existing Tasmanian power generator on December 31."
Mr Barnett said the gas turbine was currently in dry layup and had the ability to be operational within three months.
"This is more than enough time within the Hydro storage parameters under the Energy Security Framework," he said.
"The framework provides a minimum storage level of nine months, and Tasmania's storage levels are currently much higher than this."
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