Basslink was approved by the Federal, Victorian and Tasmanian Governments in September 2002 following an extensive two and a half year environmental assessment.

Basslink is an interconnector connecting the electricity grids of Tasmania and Victoria.  It runs from Loy Yang in Victoria, across Bass Strait to Bell Bay in Tasmania.  The 290 km undersea cable component of Basslink is the longest of its type in the world.  Basslink is owned and operated by National Grid Australia, a subsidiary of National Grid International.
 

The Basslink interconnector is a high voltage direct current link with a continuous rating of 480 MW.  However, its 'dynamic rating' enables the link to operate for periods at higher capacity.  The link can operate at up to 600 MW for up to 10 hours, providing that it is 'pre-cooled' (6 hours at no more than 300 MW).  The Tasmanian system will generally be able to accommodate the link exporting up to its 600 MW limit and importing up to a maximum of approximately 480 MW.  Importing is constrained by system security considerations in the relatively small Tasmanian grid.

Construction of Basslink enables Tasmania to trade electricity with the mainland electricity grid, with Tasmania officially beginning commercial trading in the National Electricity Market (NEM) on 29 April 2006.
 

Basslink enhances security of supply on both sides of Bass Strait.  In Tasmania it provides protection against the risk of energy shortages caused by prolonged droughts over Hydro catchment areas, by offering an additional source of electricity supply.  In Victoria it provides an additional 600MW of capacity to meet peak load demands.  The increased capacity and security of supply in Tasmania removes a constraint on industry growth in Tasmania.

National Electricity Market (NEM) 
The National Electricity Market (NEM) is a wholesale market for supply and purchase of Electricity.  Operations are currently based in six interconnected regions that generally follow state boundaries.  The current participating jurisdictions are Victoria, New South Wales, South Australia, Queensland, Snowy Hydro and Tasmania.

The National Electricity Market Management Company Limited (NEMMCO) was established in 1996 to administer and manage the NEM, develop the market and continually improve its efficiency.  Exchange between electricity producers and electricity consumers is facilitated through the pool where the output from all generators is aggregated and scheduled to meet demand.

Further information can be found at  www.nemmco.com.au