Author: Nathan Green

News

Polo Flat segment factory for Snowy 2.0 brings local jobs and investment

06/04/2020

The NSW Government today approved the Polo Flat segment factory Environmental Impact Statement giving a green light for construction to start.  

The factory in Cooma will produce 130,000 segments that make up the concrete rings that will line the 27km Snowy 2.0 tunnel. 

 “We fought hard to build the factory locally rather than importing segments from overseas or interstate because it means local jobs, opportunities and investment,” CEO Paul Broad said. 

 “During the five month construction period we will invest $55 million and create 30 jobs. 

 “When it is operational it will have an annual turnover of $115 million and create 125 operational jobs. 

 “We will also be working with Monaro High School to pilot school-based trade training.

 “I want to thank the NSW Government who prioritised this announcement during what is an incredibly difficult period.”

 Approximately 500 people are already working Snowy 2.0, and at its peak the workforce will be at around 2,000 people. 

 Thousand more jobs will be created indirectly through supply chains and support services.

 “2020 has been an extraordinarily difficult year for Australia, particularly the local area. First we had the devastating bushfires and now COVID19,” Mr Broad said. 

 “At times like this we need to continue to drive jobs and investment. That is why we have been so determined to ensure Snowy 2.0 continues full steam ahead. 

 “Today’s announcement that we are starting construction on the Polo Flat segment factory is just another piece of the puzzle. 

 “The Snowy Mountains is an extraordinarily strong and resilient community. It will bounce back, and Snowy Hydro will be there every step of the way.”

News

Statement from CEO Paul Broad on COVID-19 case

30/03/2020

As a provider of essential services we are well prepared to operate through COVID-19.  For weeks now we’ve had extensive measures in place to keep the lights on and progress Snowy 2.0 as safely and responsibly as possible.

On Thursday last week we were notified of a positive COVID-19 test result involving a Snowy Hydro employee who went immediately into self-isolation after returning from an overseas holiday.

As per Snowy’s strict and proactive COVID-19 protocols, the individual went into self-isolation immediately upon returning to Australia and did not come into contact with anyone. The employee was later tested following the development of a mild cough.

NSW Health Department has concluded that the employee has not transmitted the virus to any other person. In this case, the risk measures implemented by Snowy Hydro weeks ago were very effective and the staff member will remain in isolation until he is medically cleared.

Snowy Hydro continues to strictly enforce all of its COVID-19 safety and risk measures. We are operating at full capacity, Snowy 2.0 is full steam ahead and we continue to invest locally, supporting jobs and working with local businesses and suppliers.

News

Snowy Hydro COVID-19 response

27/03/2020

Snowy Hydro today welcomed the Australian Energy Regulator’s principles to protect customers and small businesses facing financial hardship resulting from COVID-19.

Snowy Hydro’s CEO, Paul Broad said through its retail brands Red Energy and Lumo Energy, is continuing to lead the industry on assisting customers experiencing financial hardship.

“We have always put our customers first.  Last week we introduced a range of protective measures, similar to our recent response to bushfires and the ongoing drought. These included: 

  • Since 20 March 2020, all disconnections for customer and small business debt have ceased. 
  • 300 customer solutions consultants are taking calls and additional resourcing has been identified to support the customer care team who deal with customers experiencing financial difficulty.
  • As per current policies of the Retail businesses, there will be no interest charged on debt.
  • Both Red Energy and Lumo Energy websites and digital channels have been updated to emphasise that customers impacted by COVID-19 should call us and that customer assistance is available. 


“Red and Lumo’s customer solutions team has already seen a significant increase in calls from customers reporting job losses and seeking assistance.  We have deployed extra staff, many working overtime to cope with the demand”.  

“More broadly as an essential services provider we are well prepared to deal with COVID-19. Snowy Hydro is operating at full capacity and Snowy 2.0 is continuing as planned.

“Our retail business is committed to continuing to provide customers with clear and regular communication during this incredibly challenging time,” Mr Broad said.

News

Snowy turns 70 as a new generation writes its next chapter with Snowy 2.0

19/10/2019

Seventy years ago we started something many people thought was impossible. The first blast near the township of Adaminaby in New South Wales marked the start of Australia’s greatest engineering achievement of the 20th century. 

The grit, mateship and expertise of more than 100,000 men and women turned a bold vision into a reality. It’s hard to imagine Australia today without the mighty Snowy Scheme. The legacy of the Snowy extends well beyond the dams, tunnels and hydro stations to the incredible people behind the power.   

Over the 25 years of construction, two thirds of the workforce came to Australia from war-torn Europe. They came to the Snowy in search of a better life and alongside the Aussies, helped build a nation. The Snowy Scheme is the birthplace of the culturally diverse society we know today, and with the Italians came one of the nation’s first espresso machines.

The project had its origins in the 1880s as a way to counter the disastrous effects of drought, by diverting the rivers of the Snowy Mountains westward to irrigate the fertile inland plains. Its hydro-electric power and irrigation water became the foundation of our modern economy.

The Snowy Scheme was one of the first renewable energy projects and continues to keep the lights on at times of peak energy demand.

Over the years, Snowy Hydro has grown into a dynamic energy company and remains a key pillar of the energy market, providing reliable and affordable renewable energy to households and businesses across the Eastern States.

In our 70th year, Snowy’s role in the energy market is more relevant than ever and we’re looking ahead to the next 100 years as we embark on our new chapter with Snowy 2.0.

As Australia moves to a low-carbon economy, there is a critical need for large-scale storage capacity and on-demand generation. Snowy 2.0 is the largest committed renewable energy project in Australia and will underpin the nation’s secure and stable transition to a low carbon emissions future at the lowest cost for consumers.

As we did many years ago, we are facing energy market challenges and Snowy 2.0 is a big part of the solution. As we reflect on the past, we’re building for the future. That’s the power of Snowy. 

News

Statement on some of the incorrect claims made about Snowy 2.0

16/10/2019

Snowy 2.0 is a project that is an investment for the next 100 years, that will keep Australia’s lights on, keep power prices down, and ensure Australia can make a secure transition to a clean energy future.

We note that the National Parks Association report is not an independent analysis, but just a set of random and unfounded assertions which ignore the true facts about this project.

Since construction began 70 years ago – which will be celebrated this Saturday – Snowy has provided the modern foundations of Australia’s economy, and the Snowy 2.0 project will be a bedrock for economic confidence in the future.

During that time we have been responsible environmental operators in Kosciuszko National Park and will continue to do so.

The facts are that only 0.01% of the national park will be permanently impacted by this project – or less than 1 square kilometre – of the park.

As our business and employees work and live in this area, we are committed to rehabilitating the areas affected by the Snowy 2.0 construction.

We also reject any claims that there have been cost over-runs on this project, or wild figures being promoted about the total cost of Snowy 2.0.

Our projected capital costs remain within the 2017 Feasibility Study cost of $3.8 billion to $4.5 billion and this was affirmed at the Final Investment Decision in December 2018 by Snowy Hydro’s Board, independent advisor Macquarie Capital, two government departments, Finance and Energy, and their independent advisor Lazard.

It is a falsehood to suggest transmission costs are an added cost to the Snowy 2.0 project as these are shared services used by the power industry, with the new upgraded capacity being essential in managing summer peak demand and transporting wind and solar to market.

We strongly reject any argument that Snowy 2.0 is not in the national interest. It has demonstrable economic and consumer benefits that have been independently valued at $4.4 to $6.8 billion.

News

Local and global experts to build Snowy 2.0

05/04/2019

Today Snowy Hydro Limited has achieved another significant milestone for Snowy 2.0 by appointing Future Generation Joint Venture as its main contractor. Snowy 2.0, a world-leading pumped-hydro expansion project, together with the mighty Snowy Scheme, will underpin Australia’s transition to a renewable energy future.

Future Generation is a joint venture between Clough, an Australian construction and engineering company, Salini Impregilo, a global hydropower and tunnelling specialist, and Lane.

The Engineer, Procure and Construct (EPC) contract signed today with Future Generation is consistent with the terms set out in the extensive, publicly-released Final Investment Decision information pack.

Under the single wrapped EPC contract, Future Generation will lead the civil works and Voith Hydro will deliver the latest hydro-generation technology in the new underground power station.

News

Keeping the lights on for generations to come

26/02/2019

At Snowy, we have a proud history and a strong vision. Snowy Hydro, supercharged by Snowy 2.0, will underpin Australia’s renewable energy future and keep the lights on for generations to come.

Almost 70 years after the first sod was turned on the mighty Snowy Scheme, we will do it all again. Today, after consideration of our Board’s Final Investment Decision, we welcome Shareholder approval of Snowy 2.0.

“It’s an exciting time for our Company,” Snowy Hydro CEO Paul Broad said. “Snowy 2.0, like the original Snowy Scheme, is a nation building project that is vital to Australia’s economy and our energy transition.

“This significant expansion of the Snowy Scheme will provide the storage and on-demand generation needed to balance the growth of wind and solar power and the retirement of Australia’s ageing fleet of thermal power stations. In short, it will keep our energy system secure.

“Snowy 2.0 is not only a sound business investment for Snowy Hydro with over 8% return on investment. It also represents the most cost-effective way to ensure a reliable, clean power system for the future.

“When it is completed, Snowy 2.0 will be able to deliver 2000MW of on-demand generation, up to 175 hours of storage, and deliver more competition that will keep downward pressure on prices.

“We are committed to continuing to grow our portfolio of assets, to maximise competition in the National Electricity Market (NEM) and deliver more value to consumers,” Mr Broad said.

Last year Snowy Hydro contracted 888 megawatts (MW) of wind and solar projects which gave us incredible insights into energy pricing. This process confirmed many of the assumptions of Snowy 2.0’s business case, including that the National Electricity Market (NEM) has passed a tipping point. New renewables are now the most economic form of new generation, even when firmed by hydro or gas.

Snowy Hydro existing fast-start assets, and increased capacity with Snowy 2.0, will firm up large amounts of intermittent renewables by coming in and out of the system to ‘fill the gaps’ by generating energy at times of peak demand.

Snowy Hydro has a strong track record when it comes to pumped-hydro. For decades we’ve been successfully operating our pumping capability at Tumut 3 and that has been invaluable, especially in years of drought.

Snowy Hydro is the fourth-largest energy player in the NEM, providing much-needed competition in the market. Snowy 2.0, along with other developments, is adding to a portfolio that operates efficiently and reliably in a highly unpredictable NEM to maximise competition and drive the best outcomes for consumers.

Snowy 2.0 Exploratory Works will start immediately. The project is expected to generate up to 5000 jobs over the life of the project.

News

Snowy Hydro welcomes planning approval for Snowy 2.0 Exploratory Works

11/02/2019

Snowy Hydro welcomes the New South Wales Government’s planning approval for Snowy 2.0 Exploratory Works today. The decision, which follows a rigorous environmental and planning assessment process, is another significant milestone in progressing the project.

Snowy Hydro hopes to commence work for Snowy 2.0 soon, subject to Shareholder approval from the Federal Government.

Snowy Hydro CEO Paul Broad said NSW Government’s support for Snowy 2.0 is critical for the security, affordability and reliability of the National Electricity Market (NEM) in the future.

“The mighty Snowy Scheme keeps the lights on across the National Electricity Market at times of peak demand today, and Snowy 2.0 will build on our existing capabilities.

“With more intermittent renewables coming online Snowy 2.0 will create an additional 2000 megawatts of on-demand energy generation and 175 hours of large-scale storage so households and businesses have energy when they need it most.

“Snowy 2.0 will deliver reliable energy at times of peak demand and can ‘fill the gaps’ by generating when wind and solar energy output is low.

“Snowy Hydro takes its environmental responsibilities very seriously. We have a long and proven record of responsibly operating the Snowy Scheme within the national park and we will do everything possible to avoid or minimise impacts from construction of Snowy 2.0.

“Snowy Hydro will provide $10.5 million to offset any impacts from the Exploratory Works,” he said.

The NSW Government, which is responsible for allocating the offsets, has made the commitment that Snowy 2.0 offsets will be used by National Parks and Wildlife Service to support local environmental and recreational initiatives in Kosciuszko National Park.

Exploratory Works involve excavating an exploratory tunnel to gain a greater understanding of the underground geological conditions at the proposed location of the new Snowy 2.0 power station. The works also include upgrades and establishment of access roads, establishment of a construction compound and supporting infrastructure, and other activities.

Almost 50 years ago, exploratory tunnels were constructed for both Tumut 1 and Tumut 2 power stations, the two underground stations in the Snowy Scheme.

Snowy 2.0 will create jobs and economic opportunities across the Snowy Mountains – already more than 50 local businesses have been involved in the project.

In March 2018, Snowy 2.0 was declared NSW Critical State Significant Infrastructure, which provided a clear and well established framework for the project’s planning and environmental approval requirements.

An Environmental Impact Statement for Snowy 2.0 Main Works will be submitted to the NSW Government later this year.

For more information about Snowy 2.0, please visit snowyhydro.com.au.

News

Snowy Hydro appoints preferred tenderers for Snowy 2.0

18/01/2019

Snowy Hydro has appointed Australian and global experts in construction, engineering and hydropower as preferred tenderers for the Snowy 2.0 project, following extensive competitive tender processes over the last 18 months.

The preferred tenderer for the civil works is Future Generation, a partnership between Australian construction and engineering company, Clough, and global hydropower and tunnelling specialists, Salini Impregilo.

World leader in hydropower engineering and equipment supply, Voith Hydro is the preferred electrical and mechanical tenderer and will deliver the latest hydro-generation technology in the new power station.

Australian company Leed Engineering has also been awarded the contract for exploratory works pre-construction activities.

Contracts are currently being finalised, with contract execution subject to Shareholder approval of the project.

This is another important step towards the commencement of the project. Snowy 2.0 is a world-leading pumped-hydro project that, with the existing Snowy Scheme, will underpin the stability of the energy market as more renewable energy enters the system.

News

Snowy 2.0 approved by the Board

12/12/2018

Today, the independent Board of Snowy Hydro Limited approved a final investment decision to proceed with Snowy 2.0, subject to Shareholder approval.

Snowy 2.0 is a pumped-hydro expansion of the existing Snowy Scheme, providing 2000 megawatts (MW) of on-demand generation and 350,000MW hours of large-scale energy storage.

After almost two years of rigorous due diligence on every aspect of the Project, including detailed financial analysis and ongoing geotechnical drilling, the Board is confident Snowy 2.0 is a strong investment for the Company.

The Board has informed the Shareholder of its decision to proceed with Snowy 2.0 subject to Shareholder approval. Further Project information will be released following Shareholder approval.

Find out more about Snowy 2.0 here.

News

Snowy Hydro’s retailers give unconditional discounts to their standing offer customers

30/11/2018

Snowy Hydro’s energy retailers Red Energy and Lumo Energy will offer all their electricity customers on standing offers an automatic and unconditional discount of 10% commencing January 1, 2019.

The discount will apply unconditionally and will provide customers in Victoria, South Australia, New South Wales and Queensland savings on their electricity bills of between $195 and $270 per year for an average user.

Ironically, many of these customers were previously on market contracts and paying less, but once their contracts expired they had to be moved to standing offers, as required by current regulation. Retailers are required by law to roll customers onto standing offers once their market contract expires, unless the customer provides their explicit consent to take a better deal.

Iain Graham, CEO of Red Energy and Lumo Energy said “we have attempted to contact these customers several times by post, email and phone to offer them a choice of market offers and competitive rates. These customers have not taken up this opportunity and have remained on a standing offer. Regardless we want to provide these customers with a better deal and are therefore delivering them an unconditional 10% saving on their electricity bills. We don’t want these customers to be disadvantaged.”

There are no conditions – customers will not have to wait twelve months to be eligible for the discount, nor will they have to be a concession customer, a pensioner or a health care card holder.

“Given the current energy regulation, providing these customers with a discount without their explicit consent is technically not allowed. However, we believe in doing the decent thing by our customers who by fault of the regulation have been left paying too much” said Mr Graham.

For more information contact:

rachel.friend@redenergy.com.au (RED/LUMO)

stephanie.mckew@snowyhydro.com.au (SNOWY HYDRO)

News

Snowy Hydro is summer ready

30/11/2018

Snowy Hydro is in a good position to meet the energy needs of our customers this summer.  The Snowy Scheme has experienced some good water inflows over recent months, with decent rain topping up our water storages.

Snowy Hydro’s CEO, Paul Broad said that for more than 65 years the company had successfully managed the Scheme through periods of high inflows and very severe droughts.

“Over winter and spring, about 1,200 gigalitres of water has reached the Scheme, which is enough to fill Sydney Harbour more than twice.

“We know how to best manage and use our water and we have been conserving water over the last six months to ensure we’re ready to go this summer.

“Snowy Hydro constantly monitors inflows and weather forecasts to plan for current and future operations to balance short and long-term energy and water needs.”

Lake Eucumbene is the Scheme’s largest storage and plays an important role in regulating highly variable inflows over years and decades. It rises and falls over much longer periods than many of our other reservoirs. Lake Eucumbene is situated in the middle of the Scheme, giving us plenty of flexibility to store and move water around.

Snowy Hydro will also continue to make downstream water releases in compliance with our water licence for farmers and environmental flows.

This summer, like decades of summers before, we’re ready to keep the lights on. We’re able to respond to the market’s needs to help provide stable, reliable and affordable energy over the coming months.

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