Tasmania is one step closer to getting a second electricity interconnector to the mainland after both major parties committed $56 million to the project.
Prime Minister Scott Morrison announced the funding after a feasibility study highlighted the economic benefits of the 1200 megawatt interconnector.
"Our government will commit $56 million this year to fast-track the development of a second electricity transmission interconnector, the Marinus Link, to unlock Tasmania's battery of the nation," he said in Melbourne on Monday.
The interconnectors are expected to deliver up to 2500 megawatts of renewable hydro power to Tasmania and Victoria, including 16 gigawatt hours of storage.
Mr Morrison said the scheme would reduce emissions by 25 million tonnes by 2030.
"Ultimately Marinus Link and battery of the nation mean lower prices, greater energy security, particularly for Tasmania and Victoria, but as well as other mainland states, while helping Australia achieve its 2030 emissions reduction target," he said.
Labor's energy spokesman Mark Butler said the opposition would match the commitment.
"We've been supportive of further work on a second interconnector to Tasmania for a number of years," he told reporters in Melbourne.
The prime minister said construction would generate 500 to 1000 jobs in Tasmania and between 900 and 1500 in regional Victoria, with the project expected to be completed by 2025.
He also flagged a further announcement about the government's upgrade of the Snowy Hydro scheme.
Greens energy spokesman Adam Bandt said his party would consider supporting the Tasmanian interconnector if it was done alongside phasing out coal.
"The only sensible way of doing that would be if you had a plan to phase out coal in the Latrobe Valley, otherwise you run the risk that a second Basslink could be just sending more polluting coal down into Tasmania," Mr Bandt told reporters in Melbourne.
Hydro Tasmania chief executive Steve Davy said it would turn a bold vision into action.
"We have what the nation needs and additional interconnection will make all of this work and get Tasmania's flexible energy capacity to the national market," Mr Davy said.
Australian Associated Press