As the energy crisis in the National Electricity Market (NEM) continues to unfold, Snowy Hydro is being called on more than ever to keep the lights on and prices down. Snowy’s role as the NEM’s ‘insurance policy’, providing on-demand energy generation during the crisis, has significantly impacted our business.

CEO and Managing Director Paul Broad said Snowy Hydro strongly rejected commentary suggesting it is to blame for recent high prices in the NEM.

“These comments misunderstand the cause of the energy crisis, as well as Snowy Hydro and the nature of its generation assets,” he said.

Snowy Hydro is a relatively small supplier of energy owing to the fact that its principal source of fuel (water) is limited. In most years Snowy Hydro supplies between 2-4% of the total energy generated in the NEM, operating at critical times of peak demand and when there are unplanned baseload outages. 

The current crisis has arisen due to shortfalls from suppliers of bulk energy, including coal, wind and solar. To help manage this shortfall, Snowy Hydro has operated its assets at record levels, effectively as a baseload generator. 

“To blame high prices on Snowy Hydro for stepping into the void left by bulk energy providers is absurd,” Mr Broad said.

“Were it not for the actions of Snowy, prices would have been significantly higher. Our teams have worked tirelessly and closely with AEMO, the market operator, throughout this challenging period.

“In May this year, generation from the Snowy Scheme was almost double the previous monthly record. This was essential for maintaining security of supply in the NEM, but it is not sustainable. 

“Snowy’s ability to operate in this manner is constrained by its fuel scarcity – we don’t have enough water to manage the ‘energy gap’ from other generators for extended periods,” Mr Broad said.

Snowy Hydro’s water resources must be carefully allocated to the highest value periods in order to keep the lights on. In other words, hydro generation has a high opportunity cost.

It is wrong to suggest that high prices could have been avoided, or that Snowy Hydro should have offered its generation at lower prices. Doing so would have caused our hydro assets to be dispatched ahead of other forms of generation with a cheaper cost of fuel. Not only would this not have made economic sense, it would have left the company unable to respond to critical demand peaks this winter and summer, further increasing the risk of blackouts.

The implication that Snowy Hydro enjoyed a financial windfall as a consequence of the crisis is also inaccurate. Most energy dispatched in the NEM is pre-sold to customers under short or long-term contracts. This is essential for stabilising the cash flow of generators and retailers and is part of the market design. It also means that a narrow focus on price outcomes in the NEM reveals little about generator profitability. 

The steps taken by Snowy Hydro to help keep the lights on – depleting its reserves of available water – have in fact been detrimental to the company’s financial and risk position. Snowy Hydro rejects any suggestion it has been ‘profiteering’ from the crisis, or has in any way exacerbated it. 
Snowy Hydro will remain focused on ensuring security of supply for the NEM during this challenging period.

Snowy Hydro today welcomed the announcement by APA Group that it had signed gas transport, storage and development agreements for the Hunter Power Project.

APA will construct, own and operate the Hunter Power Project’s gas pipeline connection to the Sydney -Newcastle pipeline, known as the Kurri Kurri Lateral, along with a 70 terajoule gas storage facility.

Snowy Hydro CEO Paul Broad said the Hunter Power Project would play a critical role in supplementing Snowy’s generation portfolio with dispatchable capacity when the needs of electricity consumers are highest.

“Along with Snowy 2.0, which is Australia’s largest committed renewable energy project, the Hunter Power Project will underpin thousands of megawatts of new wind and solar plants.

“The Hunter Power Project will be good for prices, by filling the gap in electricity demand and offsetting potential cost increases resulting from the closure of the Liddell Power Station.

“Today’s announcement is another significant milestone for the project and Snowy is looking forward to continuing to work closely with APA.

“The Hunter Power Project is on track and progressing well, with key milestones including naming CIMIC Group’s UGL as the Principal Contractor, as well as the signing of a major contract with Mitsubishi Power to deliver the hydrogen-ready open-cycle gas turbines.

“Snowy continues to take opportunities to turbo-charge local investment by the project. That’s why we’ve engaged a Hunter-based recruitment agency, engaged a local civil works contractor, established a Snowy Hydro site office at Kurri Kurri and mobilised a local workforce.”

Snowy Hydro is again expanding its renewable energy portfolio, signing a contract to purchase power and renewables certificates from a new CWP Renewables wind farm development in New South Wales.

The deal with the Uungula wind farm near Wellington is the 12th for Snowy Hydro, a leader in clean energy and Australia’s renewable energy transition.

Managing Director and CEO Paul Broad said the agreement to purchase 200 megawatts of Uungula’s output for a 15-year term supported Snowy Hydro’s commitment to providing affordable, reliable and clean energy to its commercial and industrial customers.

“Renewables are the future and by combining our contracted wind and solar projects with our on-demand hydro assets we can provide ‘firm’, secure, low-emissions energy to the market, while keeping the lights on,” Mr Broad said.

“This new deal with CWP Renewables is targeted to start in 2026 after construction of Uungula is completed and will increase the total energy that Snowy purchases from renewables projects to 4.1 terawatt hours each year.”
CWP Renewables CEO Jason Willoughby welcomed the second partnership with Snowy Hydro and said the agreement confirmed the ongoing demand for renewables.

“At 414 megawatts, Uungula will be our largest wind farm to date and provide enough clean electricity to power more than 200,000 homes,” Mr Willoughby said. “It’s great to have Snowy Hydro on-board as a foundation offtaker for the project, which in turn helps us continue to develop our pipeline of renewable projects.”

CWP Renewables currently operates and owns 650MW of renewable energy assets in the National Electricity Market and has another 5GW of wind, storage and firming projects in its near-medium term development portfolio. Snowy Hydro already partners with CWP Renewables through an offtake agreement for power from its Bango wind farm, north of Yass.

“We are pleased to be working again with CWP Renewables and growing our clean energy business,” Mr Broad said. “This partnership is another example of Snowy Hydro securing greater investment in renewables across Australia, which is a win-win for everyone.”

Uungula Wind Farm has received development approval and construction is planned to start this year, supporting more than 260 jobs.

Snowy Hydro welcomes the ANAO’s findings that the Company’s governance of the project is effective, with no recommendations raised.

Specifically, the audit concluded that Snowy Hydro has appropriate arrangements in place to govern, monitor and report on the project; including in relation to managing the Engineering, Procurement & Construction contract with our principal contractor Future Generation JV.

From the outset, Snowy Hydro established tailored governance arrangements to oversee the development and implementation of this critical energy infrastructure project.

It is pleasing that the effectiveness of these arrangements have been independently assessed by the ANAO, with no material exceptions identified.

To read the full ANAO report please click here.

With work on Snowy 2.0 powering ahead and three huge tunnel boring machines now in operation, now is a great time for community members to discover more about Australia’s largest committed renewable energy project at local information sessions being held throughout the Snowy Mountains.

Snowy Hydro will host the Snowy 2.0 community information sessions starting from Tuesday 10 May, providing locals with opportunities to be updated, ask questions and provide feedback.

Hear from the Snowy 2.0 project team about:

• Current project activities and news;
• Traffic management and road safety initiatives;
• Accommodation, recreation access and other local issues; 
• Jobs and training on Snowy 2.0.

Snowy Hydro CEO Paul Broad said construction of the Snowy 2.0 pumped-hydro expansion of the mighty Snowy Scheme was providing significant economic and social benefits right across the region.

“There are 1,800 people employed on Snowy 2.0 and tens of millions of dollars are being invested locally, so it continues to be a very exciting time for communities throughout the Snowy Mountains,” Mr Broad said.

“I encourage everyone to come along to one of our sessions to hear the latest about Snowy 2.0 and learn more about all of the training and work opportunities with the project. 

“We’re keen to hear your views about Snowy 2.0, discuss any local concerns that you may have and answer your questions.”

Run by Snowy Hydro, the sessions will be attended by representatives from Future Generation, the joint venture partnership managing Snowy 2.0 jobs, procurement and subcontracting.

There will be a formal presentation and Q&As at the sessions, plus the chance to speak one-on-one with project team members while enjoying light refreshments. 

Community information sessions schedule:

Date	Town and location	Time
Tuesday 10 May  Wednesday 11 May	Cooma Ex-Services Club Adaminaby Bowling Club	6-7.30pm 6-7.30pm
Tuesday 17 May  Wednesday 18 May   Thursday 19 May	Cafe Nest, Tumbarumba Club Tumut Talbingo Country Club	6-7.30pm 6-7.30pm 6-7.30pm

A new road safety commitment between Snowy Hydro and NSW Police is increasing highway patrols in the Snowy Mountains over the coming three years.

Two highway patrol vehicles and five more police officers are now available for patrols on the Snowy Mountains Highway and other local roads – including one new four-wheel drive highway patrol vehicle and two new police officers that have been co-funded by Snowy Hydro and NSW Police.

The other resources have been redeployed to the area from across the Southern Region Traffic and Highway Patrol Command.

Snowy Hydro CEO Paul Broad said the company’s support for NSW Police’s local road safety operations would benefit all road users.

“Safety is, and always will be, the highest priority for Snowy Hydro,” Mr Broad said. “We are proud to be supporting this joint initiative with NSW Police to increase highway patrols throughout the Snowy Mountains. These are the communities in which we live, work and serve.”

Mr Broad said the commitment complemented Snowy Hydro’s recent collaboration with the NSW government to boost mobile phone coverage along the Snowy Mountains Highway.

The $1.3 million joint funding has delivered new small cell antennas at three priority sites between Talbingo and Adaminaby, with installations at two more sites – Tantangara Road and Lobs Hole Ravine Road – soon to go live.

“This is a great outcome for community safety, with these important initiatives focusing on roads used by hundreds of thousands of people, including locals, tourists, workers and the transport industry,” he said.

The additional police presence aims to act as a deterrent to poor driver behaviour on the Snowy Mountains Highway and other roads including Link and Goat Ridge roads. It also provides extra capacity for police undertaking highway patrol functions including alcohol and drug testing, checking heavy vehicle compliance and timely emergency response.

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

ENDS

High inflows to the Snowy Scheme, including Jindabyne catchment, have been ongoing since November.

Based on operational forecasts, if left unmitigated, Lake Jindabyne would reach full supply level (100%) and commence spilling within a week. To avoid uncontrolled spill, Snowy Hydro will again make pre-releases into the Snowy River below Jindabyne Dam from Tuesday 12 April 2022.

Pre-releases will be greater than the environmental releases notified on Snowy Hydro’s website and may change at short notice in response to the weather conditions. Releases could reach flow rates up to 3,000 megalitres per day, similar to the rates that have been released at other times in the past five months.

The outlook as we head towards winter is for wet conditions to continue. Snowy Hydro will continue to pump water from Jindabyne to Geehi Reservoir to be released through Murray 1 and 2 Power stations into the upper Murray River at every opportunity. Further releases to the Snowy River may still be required to avoid uncontrolled releases.

If Lake Jindabyne reaches 100%, it will trigger operation of the spillway gates. Dam safety is paramount at this time and the spillway gates will automatically release water at any time the storage reaches or exceeds 100%.
For the community, the most important message is to stay safe and well-informed. The public can stay updated about flood alerts here:
Bureau of Meteorology
NSW State Emergency Service and
Vic Emergency
For more information about releases into the Snowy River visit
https://www.snowyhydro.com.au/generation/live-data/lake-levels/ and
https://dpie.nsw.gov.au/water/home
Snowy Hydro will continue to keep the community informed about management of water in Lake Jindabyne through its website and social media channels.
DPE Water will engage with landowners subscribed to its SMS service.

 From 1 July 2022 the University of Sydney will be powered by 100 percent renewable electricity. 

The University has signed a five-year contract with Red Energy, backed by the  mighty Snowy Hydro, to source 100 percent of its electricity in NSW from renewable  sources. Once the contract begins, the University’s activities will be powered by solar  energy. 

As well as operations across campuses and University-run student accommodation,  the contract will cover energy supply for Moore College, Sancta Sophia College, St  Andrew’s College, St Paul’s College, the Women’s College and Wesley College. The  positive impact will be in excess of removing 31,200 cars from the road. 

The move brings the University a step closer to its target of net zero emissions by  2030.

Vice-Chancellor and President, Professor Mark Scott said the shift to renewable  electricity reflected the University’s deep commitment to a more sustainable future. 

“We are making the move to 100 percent renewable electricity three years before our  target of 2025,” he said. 

“This agreement will power our research and teaching while reducing emissions. We  are delighted to be working together with Snowy Hydro and Red Energy to achieve  the ambitious energy targets set out in our sustainability strategy. 

“We know reducing emissions to combat climate change is a priority for our staff and  students and we are committed to embedding sustainability in every aspect of  University life.” 

Paul Broad, Managing Director and CEO of Snowy Hydro, which owns Red Energy,  welcomed the partnership and the role it will play as Australia’s economy  decarbonises and transitions to renewables. 

“At Snowy Hydro, we have lived, breathed and delivered renewable energy to  Australians through the mighty Snowy Scheme for generations. We are committed to  continuing this legacy and leading the charge to a renewable energy future by  working with large institutions like the University of Sydney. 

“Combining our contracted wind and solar energy with our on-demand hydro assets  allows us to provide reliable and 100 percent renewable electricity to the University.” 

The switch to renewable electricity is one of a range of initiatives under the  University’s sustainability strategy. The institution has committed to sending zero  waste to landfill by 2030 and to the eradication of single-use plastic on campus by  2025. 

The University is working to integrate sustainable practices across operations,  teaching and research, with steps including the Gelion solar smart bench roll-out last  year and the recent installation of a biodigester to process organic waste into  compost. 

How University’s renewable energy supply will work 

Power consumed by the University of Sydney will be matched by generation from a  NSW solar farm or, in certain instances, other renewable facilities in the state. The  associated Large Scale Generation Certificates will be surrendered by Red Energy  to evidence that renewable generation has been exported into the National Electricity  Market at quantities equivalent to the University’s load.

Click here to view the full submission.

Snowy Hydro’s long-standing commitment to supporting local people and initiatives continues in 2022, with applications now open for round one of its community grants program.

Grants of up to $10,000 are available for activities, projects and events that align with Snowy Hydro’s four social commitment pillars: education and development, health and wellbeing, regional capacity building and environment.

Snowy Hydro CEO Paul Broad said the aim of the grants program was to support and deliver positive and lasting outcomes for communities in the local region.

“This is very important to us because these are the communities in which we live, work and serve,” Mr Broad said. “We’re not only a major employer, operator of the mighty Snowy Scheme and provider of electricity and gas to more than 1.1 million account holders – we take our role as part of the community very seriously.

“Snowy Hydro is proud to provide grant funding opportunities to local organisations, so if you have an event or initiative that may be eligible for support, I encourage you to apply.”

The Snowy Hydro Community Grants Program has two intake periods, with the first for this year open from Tuesday 1 February until 15 March 2022. Following the evaluation period, applicants are advised of the outcome in the first week of April.

There is a second application period starting on 1 September 2022.

All applications must be received via the online form on our website, where there is more information about grants eligibility, assessment criteria and an overview of Snowy Hydro’s community commitment pillars.

Importantly, the location of the event/initiative must be within the Snowy Monaro Regional and Snowy Valleys council areas, or in Corryong, Victoria.

Construction is underway for a $19 million, 126-bed accommodation development to house Cooma-based workers for the Snowy 2.0 pumped-hydro renewable energy project.

Snowy Hydro and Snowy 2.0 principal contractor Future Generation Joint Venture celebrated with a sod-turning ceremony at the site today.

Known as Joule Ridge, the accommodation investment is another significant contribution by Snowy Hydro to the local region’s economy and supports the thousands of jobs created by Snowy 2.0, said CEO Paul Broad.

“Snowy 2.0 is ramping up and with 4,000 jobs being created over the life of the project, it’s an important part of our project planning to build this accommodation at Joule Ridge.

“It will provide more than 120 beds for Snowy 2.0 workers including some of those working at the Polo Flat Segment Factory, the Future Generation office and other local areas.

“Joule Ridge will also address some of the social pressures that come with economic growth, such as a shortage of housing.

“Once all accommodation construction is completed, between Joule Ridge, Lobs Hole and Tantangara, we will have capacity to accommodate almost 1,700 workers.” 

There are also Snowy 2.0 workers accommodated at other locations including Cabramurra, Adaminaby and Providence Portal.

Consisting of up to 140 modular units, Joule Ridge will provide accommodation, communal facilities, parking and landscaping. Operating for the life of the Snowy 2.0 project, accommodation will be provided across 90 single rooms and 36 self-contained units.

Snowy Hydro purchased the five-hectare land parcel, which had been abandoned for several decades, specifically for Snowy 2,0 worker accommodation. 

The development of Joule Ridge is being managed by Future Generation. Earthworks and preliminary construction activities will be underway within days, with Joule Ridge expected to be opened by mid-year.

For more information about the Snowy 2.0 project visit snowyhydro.com.au