Tasmania's Labor party has pledged to sell the island state's stake in a proposed additional undersea electricity cable if it is in power.
Labor, which is aiming for success at the March 23 state election after a decade in opposition, says it wants to get Tasmania "off the hook" for the Marinus Link bill.
The project was scaled back in September after the cost of two cables blew out by $1.7 billion to an estimated $5.5 billion.
The federal government, which upped its stake to 49 per cent, announced it would initially progress with stage one of the project - one cable costing about $3.3 billion.
Under the plan, Victoria has a 33.3 per cent share and Tasmania 17.7 per cent, with an option to sell its stake to the Commonwealth on completion.
Tasmanian Labor leader Rebecca White said her party would fund construction but then exercise the option as soon as it could.
"Marinus can still happen - but under Labor, Tasmanians won't be the ones paying for it," she said on Monday.
"We acknowledge that this is a critical project for the nation, but that is exactly why the Australian government should be the ones to pay for it."
Marinus Link has been touted as a critical component of making Tasmania the "battery" of the nation by increasing the island's capacity to export green power.
State Liberal Treasurer Michael Ferguson said Labor's position would be a "wrecking ball" for Tasmania's economy.
"This is a reckless decision that threatens the future of the Marinus Link and will put a knife through the heart of the Tasmanian economy," Mr Ferguson said.
"The Marinus Link is a vital economic enabler for Tasmania that will generate a massive $1.4 billion investment, 1400 direct jobs and ... energy security."
A spokeswoman for federal Energy Minister Chris Bowen said Marinus Link remained a crucial project for both sides of Bass Strait.
"The option for Tasmania to sell its equity in the project has been public knowledge for the past six months," she said.
"It does not impact the development or delivery of the project as the option does not come into effect until the first cable is fully operational."
The first stage isn't slated to be finished until 2028/29.
The state Liberals raised concerns about Tasmania paying too much for the project before the new funding deal was struck in September.
Tasmanians are heading to an early election more than a year ahead of schedule, with polls indicating it will be difficult for either major party to form majority government.
The Liberals announced they would rewrite decades-old legislation capping state-owned electricity generator Hydro Tasmania from building projects greater than 40MW in capacity.
Both parties have said they would change the ministerial charter of Hydro Tasmania to ensure local consumers were prioritised.
