Take into account the unique geographical location of Australia, there is a time difference of two hours between east and west coasts of the country. This means the peak of energy usage in the two regions will occur in two different time periods. This paper studies the feasibility of building a transmission line to connect the energy markets in both east and west Australia. A simplified market simulation model is developed to investigate the operation of the interconnected market. The market prices in different regions with and without the proposed interconnection will be calculated by the proposed simulation model.