Snowy 2.0 Feasibility Study
In 2017, Snowy Hydro conducted a feasibility study which concluded that the Snowy 2.0 pumped hydro expansion project is both technically and financially feasible.
The comprehensive study provided a base case design and a strong investment case exceeding Snowy Hydro’s stringent investment hurdles, with significant input from leading independent experts in economics, engineering, geology and cost estimation.
Following detailed consideration of the study, Snowy Hydro’s independent Board of Directors approved progression of the project towards final investment decision, expected in late 2018.
An independent economic analysis conducted by leading consultants Marsden Jacob and Associates confirmed Snowy 2.0’s scale, strategic location and longevity make it by far the cheapest and best option for the rapidly-changing NEM as Australia decarbonises.
The first energy generation from Snowy 2.0 is expected in late 2024, in time to meet market needs for large-scale storage and underpinning the reliability and stability of the NEM for generations to come.
The need for large-scale storage will only increase and in the future, Snowy Hydro could look to replicate Snowy 2.0 to create up to 8,000 megawatts of pumped-hydro storage at this site.
The feasibility study demonstrated the key benefits of Snowy 2.0 which include:
- System security and reliability - Snowy 2.0’s dispatchable energy generation can respond within minutes to changing market needs.
- Lower energy prices - wholesale energy costs will be lower with Snowy 2.0 in the market than without.
- Scale and central location - power from Snowy 2.0 will reach all National Electricity Market (NEM) users, including the major load centres of Sydney and Melbourne directly and South Australia indirectly.
- Supporting renewables - Snowy 2.0 will enable a low emissions future at least cost by underpinning the stability of the NEM as more and more intermittent renewables enter the market to meet global targets.
The feasibility study also demonstrated that Snowy 2.0:
- is technically feasible - it can be physically built and we have a base case design, construction schedule and costing;
- is financially feasible - it will generate returns that meet Snowy Hydro’s stringent investment hurdles;
- can be funded internally by Snowy Hydro, and we are looking at a range of financing options;
- will not have any impact on downstream water users and doesn’t change the water release obligations under Snowy Hydro’s water licence, and
- will go through well established and robust planning and environmental approval processes.
All publicly available chapters of the feasibility study are available for download below. Please note:
- some of the study chapters have been withheld as they include commercially confidential information.
- some chapters are large files as they include technical drawings and diagrams.
|4||Business Analysis and Modelling (omitted)||2MB|
|5||Option Evaluation and Value Improvement||16MB|
|6||Geology and Terrain||42MB|
|7||Geotechnical and Seismic||32MB|
|8||Meteorology and Hydrology||6MB|
|11||Project Execution and Planning||2MB|
|14||Cost Estimate (omitted)||2MB|
|15||Government, Stakeholders and Communication||5MB|
|16||Health and Safety||2MB|
|17||Environment, Permits & Approvals||14MB|
|All||Complete Feasibility Study||200MB|