News

SNOWY HYDRO SIGNS LOCHARD GAS STORAGE AGREEMENT

15/07/2024

Snowy Hydro has entered into a 25-year gas storage agreement with Lochard Energy at the Iona underground gas storage facility to support Snowy Hydro’s gas fired generation fleet.

Australia’s energy market continues to experience significant change with the uptake of renewables and the progressive closure of coal fired assets. Snowy Hydro helps manage intermittency in the National Electricity Market (NEM) through its portfolio of power stations including the Snowy Scheme.

The long-term Lochard storage deal will allow Snowy Hydro to utilise stored gas when required to operate its gas fired power stations.

Snowy Hydro CEO Dennis Barnes said reliability and security of supply is central to the way Snowy Hydro operates, maintains and develops its nationally critical infrastructure.

“Snowy Hydro’s generating portfolio of hydro, pumping and gas fired power stations continues to support further deployment of renewables into the grid by “firming” intermittent generation sources into reliable power. The gas storage agreement with Lochard Energy will support the operation of our gas-fired power stations in Victoria.”

Lochard CEO Tim Jessen said Lochard welcomes the opportunity to strengthen its relationship with Snowy Hydro through the signing of the new Gas Storage Services Agreement.

“This important agreement will underpin Lochard’s Heytesbury Underground Gas Storage project through which we will further expand the Iona Gas Storage Facility to continue to provide critical energy storage services in Victoria.”

Gas storage is essential to ensure the supply of gas to meet peak electricity demand in seasonal markets, to supply gas to peak power generators including Snowy Hydro, and to ensure security of supply in the event of supply disruption.

Snowy Hydro owns and operates three gas-fired power stations, strategically located in the LaTrobe Valley and Laverton in Victoria, and at Colongra, NSW. With a current total generating capacity of 1,290 MW. Snowy Hydro is also constructing a 660MW gas fired power station at Kurri Kurri in the Hunter Valley.

The Lochard Energy gas storage agreement will commence in January 2028.

News

SNOWY HYDRO RELEASES 2023 SUSTAINABILITY REPORT, EXPANDS WIND FARM DEAL

11/01/2024

Snowy Hydro has released its 2023 Sustainability Report, underscoring the company’s commitment to environmental responsibility, community support, and the ongoing pursuit of clean, sustainable energy solutions.

The report outlines Snowy Hydro’s Sustainability Program, which aligns with the company’s integral role in Australia’s renewable energy future. It highlights three prioritised sustainability opportunities for 2023-24:

Understanding and mitigating risks associated with climate change
Emissions reduction and facilitating the decarbonisation of the National Electricity Market (NEM)
Strengthening relationships with Traditional Owners and communities where we operate

Snowy Hydro is a major contributor to the reshaping of the NEM to support the transition to a cleaner, low-carbon economy. The company aims to be a driver and enabler of least-cost NEM decarbonisation.

Snowy Hydro CEO Dennis Barnes said reliability, security of supply, and supporting a sustainable transition would remain the central considerations behind how the company operates, develops and maintains its nationally critical infrastructure.

“As Australia undergoes significant changes in its energy markets, Snowy Hydro remains steadfast in its commitment to delivering clean, sustainable, and affordable energy, contributing to a brighter and more sustainable future for all,” Mr Barnes said.

“We are already reducing our low emissions intensity profile by investing in new generation technology and materially increased renewable capacity.

“Investments in the Snowy 2.0 and Hunter Power Projects, the Renewable Energy Procurement Program, and the development of green hydrogen capability directly support that purpose.”

Mr Barnes said energy purchased through Snowy’s wind and solar offtakes continued to grow. The offtakes will deliver approximately 5,200 GWh annually and exceed Snowy Hydro’s expected long-term hydroelectric generation.

The new wind and solar generation Snowy Hydro is enabling will displace more than 33 million tonnes of CO2 per annum. This equates to a 28% reduction in NEM emissions from 2022 levels and approximately 13% of Australia’s total emissions reduction target for 2030.

Mr Barnes today also announced the signing of a further 100 megawatts of renewable capacity from Squadron Energy’s Uungula Wind Farm over 10 years.

“This adds to the 200 megawatts over 15 years that Snowy signed with the project in 2022.

“We are proud to continue supporting important projects like Uungula Wind Farm which will produce enough renewable electricity to power more than 220,000 homes, and will prevent more than 560,000 tonnes of carbon emissions.”

Snowy Hydro has developed and sold products within a new environmentally-focused product class for its commercial and industrial customers, which includes some of Australia’s largest shopping centres, universities, banks and property managers.

The 2023 Sustainability Report outlines our commitment to supporting local communities through employment, education and environmental responsibility.

Snowy Hydro actively fosters diversity and inclusion, aiming to increase female representation in the workforce (currently at 42.5%), particularly at senior levels.

Snowy Hydro has a long history supporting the local communities in which it operates. This includes partnerships and sponsorships with not-for-profit organisations, community grants programs, contributing to local infrastructure, and economic investment in communities. The Snowy Hydro 2023 Sustainability Report is available to download on the Snowy Hydro website.

FAST FACTS

Snowy Hydro releases 2,300 gigalitres of water each year, which generates an average of approximately 4,250 gigawatt hours (or 4.25 terawatt hours) of renewable energy.

Approximately 94% of Snowy Hydro generation comes from renewable sources.

With a generation capacity of 5,500 MW, Snowy Hydro is the third-largest generator by capacity and one of the largest renewable generators in the National Electricity Market.

Snowy Hydro’s hydro operations have the lowest carbon intensity of Australia’s largest generators.

Snowy Hydro is investing in clean, on-demand electricity generation and storage through the expansion of the Snowy Scheme. Snowy 2.0 will add 2,200 MW of generation capacity and 350,000 MWh of storage capacity.

The Hunter Power project will provide 660 MW of dispatchable, on-demand electricity, enabling variable renewable energy sources (wind/solar) to operate in the NEM.

In FY2024, Snowy Hydro anticipates approximately 2.5 terawatt hours of wind and solar energy will be provided through power purchase agreements.

Snowy Hydro employs 1,956 people in Victoria, New South Wales and South Australia, with a further 2,700+ for Snowy 2.0, and 460 on the Hunter Power project.
42.5% of Snowy Hydro employees are female, 57.4% are male and 0.1% are nonbinary or unspecified.

News

APPOINTMENT OF CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR

18/01/2023

Snowy Hydro is pleased to announce the appointment of Mr Dennis Barnes as Chief Executive Officer and Managing Director, effective 1 February 2023.

Chairman David Knox said the Board was delighted to appoint Mr Barnes to the role and is confident that he will continue to strengthen Snowy Hydro’s position as a leading integrated energy generator and retailer.

“We are thrilled to appoint someone of Dennis’ calibre and extensive energy sector experience to lead Snowy Hydro into the future,” Mr Knox said.

“Dennis has over three decades’ experience in the energy sector, with a focus on renewables and retail. His appointment brings a wealth of strategic knowledge and proven capability in delivering strong performance across large energy businesses at an exciting time for Snowy Hydro.”

Mr Barnes was most recently CEO of ASX/NZX-listed Contact Energy, guiding the company through a period of significant change, including the separation from Australian majority shareholder Origin Energy and the completion of a NZ$2billion investment programme encompassing renewable generation and enterprise-wide systems.

Prior to this, Mr Barnes also held several senior executive roles at Origin Energy, including as General Manager, Energy Risk Management and General Manager, Generation Operations; and he currently serves as a non-executive director of Tilt Renewables and Mercury NZ.

“I am excited about the prospect of working with the excellent team at Snowy Hydro, a truly iconic Australian business, at a complex and important time for our entire sector. I am also particularly looking forward to building strong connections with our stakeholders and the communities we serve and operate in, as we address the major issues our sector must focus on,” Mr Barnes said.

The appointment follows a comprehensive local and international executive search process. Roger Whitby, who has been Acting Chief Executive Officer since August will resume his role as Chief Operating Officer.

“I would like to acknowledge and thank Roger for his leadership, commitment and steady guidance during this period of transition for the company,” said Mr Knox.

[ends]

Dennis Barnes – brief overview of career history

Current: Non-executive director of Mercury Energy NZ and Tilt Renewables.
2011-2020: Chief Executive Officer of Contact Energy, a New Zealand-based electricity generator and retailer.
- Completed a $2B investment program in renewable and flexible generation and enterprise-wide systems.
- Successfully managed the change in ownership, including listing on the ASX.
- Led significant turnaround and several major construction projects.
- Optimised the asset portfolio, developing the best geothermal capability in New Zealand and highly innovative retail business.
1998-2011: various senior executive roles at Origin Energy
Prior roles at Scottish Power, Scottish & Southern Energy and Norweb in the United Kingdom
Began his career as a Metallurgist with Alcan
Holds a BSc (Hons), GradDip (Marketing) and MBA.

News

University of Sydney to be powered by 100% renewable electricity new partnership with Snowy Hydro and Red Energy

06/04/2022

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.

News

SNOWY HYDRO’s SUBMISSION ON THE DRAFT ISP

13/02/2022

Click here to view the full submission.

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 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 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 signs game-changing deals

01/11/2018

Snowy Hydro announced the signing of eight wind and solar contracts today to provide cheaper energy to 500,000 households.

The eight projects, totalling 888 megawatts (MW), are located across New South Wales and Victoria and are expected to generate about 2.8 terawatt hours of energy annually.

The new renewable energy generation, ‘firmed’ by existing Snowy Hydro assets, is a game-changer and will push down future energy prices. This will bring on significant new energy supply and therefore much-needed competition to the market, and will enable Snowy Hydro to pass on lower wholesale prices to our customers.

The renewable energy we have contracted will enable Snowy Hydro to offer very competitive, firm wholesale prices (ie. the cost of the raw renewable energy plus the cost of ‘firming’) – for below $70/MWh for a flat load, for up to 15 years.

Snowy Hydro is a key provider of fast-start, “capacity”-type products, and we keep the lights on at times of high demand. However, we are ‘energy short’ (meaning that we do not generate enough energy from own power stations to cover all of our customers) so we have to purchase energy from the wholesale market. We are one of the largest energy buyers in the NEM and, just like households, we are exposed to high wholesale prices.

Over the last 12 months, there have been rapid changes in the NEM and competitive pricing across all generation technologies has seen the cost of renewables fall.

Snowy Hydro was overwhelmed with the level of interest in our Renewable Energy Procurement Program, which saw more than 17,600MW of projects submitted through the procurement process. All eight winning projects are expected to come online within the next two years.

Snowy Hydro’s existing hydro, gas and diesel assets give us the ability to ‘firm’ up vast amounts of intermittent renewable generation today to ensure energy is available when needed.

In simple terms, ‘firming’ works by transforming intermittent energy into reliable energy so it’s available on-demand when a customer needs it. While the energy output of individual projects varies, Snowy Hydro’s power stations can work in combination with wind and solar, creating ‘firm’ reliable energy.

Snowy Hydro owns Red Energy and Lumo Energy, which together have more than one million customers.

News

Snowy 2.0 Declared Critical State Significant Infrastructure

09/03/2018

Snowy Hydro welcomes the New South Wales Government’s decision to declare Snowy 2.0 as a Critical State Significant Infrastructure (CSSI) project.

The declaration signifies the critical role that the Snowy 2.0 project, together with the upgrades to the NSW transmission network, will play in providing reliable energy and large-scale storage to NSW as we transition to a low emissions economy.

Snowy 2.0’s generation and large-scale storage capabilities, along with the existing Snowy Scheme, will continue to underpin the stability and reliability of the NEM as more intermittent renewables enter the market.

The CSSI declaration is not final approval for the project. It is a framework that sets out the robust environmental assessment and approval process that is required for the Snowy 2.0 project.

Paul Broad, CEO of Snowy Hydro said that the CSSI declaration gives the company a very clear and transparent process to follow.

“Like any other project, we are preparing comprehensive Environmental Impact Statements which will include a range of scientific and technical studies to be carefully scrutinised by the NSW Government.

“We have the greatest respect for the Kosciuszko National Park. It’s our backyard and for almost 70 years we have been excellent responsible environment managers operating the existing Scheme across the region.

“The project’s design is being done in a way that minimises its environmental footprint. This includes putting the majority of the physical structures, such as tunnels and the powerstation deep underground”, Mr Broad said.

The EIS will detail the components of the project, the potential environmental, social and economic impacts of Snowy 2.0 and how to best manage them. As part of the EIS, we will undertake thorough community consultation so that the wider community can have input into the process. The EIS will also be published for public comment.

Under the CSSI process and in accordance with the NSW Environmental Planning and Assessment Act 1979, Snowy Hydro will submit an EIS for assessment by the Department of Planning and Environment, in consultation with other key agencies such as the National Parks and Wildlife Service and the Environment Protection Agency.

News

Share Sale: Business as usual at Snowy Hydro

02/03/2018

Today the Prime Minister, Malcolm Turnbull confirmed that the Federal Government will become the sole shareholder of Snowy Hydro Limited after purchasing the New South Wales and Victorian Government’s shares in the company.

This is simply a change in the ownership of the shares in the company and for Snowy Hydro it’s very much business as usual.

Snowy Hydro will continue to be a Corporations Act company with an Independent Board of Directors and there are no changes to our operating regime, including the Snowy Water Licence.
Snowy Hydro are deeply embedded in the local community through both our workforce and our existing operations.

We’re continuing to progress the Snowy 2.0 project as we move towards a Final Investment Decision which will be made by our Independent Board of Directors.

For more information the Federal Government’s media release is here:

https://www.pm.gov.au/media/historic-snowy-deal

News

Independent expert report for Snowy 2.0 released

30/01/2018

As part of the feasibility study for the Snowy 2.0 project, an independent expert economic analysis of the changing energy market was commissioned and has now been released.

The report, conducted by Marsden Jacob Associates (MJA), considered the state of the market “with or without” Snowy 2.0. This information and analysis was critical for factoring in the market scenarios and public benefits of the project.

Key findings of the MJA report confirm that Snowy 2.0 would:

Lead to better price outcomes for retailers, customers and large energy users.

Help future proof the National Electricity Market at the least possible cost against the intermittency of wind and solar generation as they continue to grow their market share.

Build on the Snowy Scheme and see greater utilisation of existing dams and increase operating capability.

This expert report follows the release of the 700 page Snowy 2.0 feasibility study, which Snowy Hydro published last December.

Snowy Hydro would like to acknowledge the contribution of Australian Renewable Energy Agency to this report.

The report is available at: https://www.snowyhydro.com.au/snowy-20/