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SNOWY HYDRO RELEASES 2024 SUSTAINABILITY REPORT

13/01/2025

Snowy Hydro has released its 2024 Sustainability Report, covering the progress the energy generator and retailer has made in areas such as environmental stewardship, social impact, and understanding and responding to its carbon emissions and climate risks.

Snowy Hydro CEO Dennis Barnes said the report reflects the company’s role in enabling Australia’s transition to renewable energy, while highlighting its progress and ambitions.

“At Snowy Hydro, we understand that sustainability goes beyond fulfilling our environmental commitments,” Mr Barnes said. 

“It’s about supporting our people, driving better diversity outcomes and making a positive difference to the communities we serve.

“The 2024 report shows the progress we are making and achievements we are proud of. While we recognise there is still more to do, this report serves as our roadmap, keeping us accountable and focused on delivering even better outcomes for stakeholders and the community in the future,” Mr Barnes said.

Mr Barnes also acknowledged Snowy Hydro’s responsibility as custodian of the water that flows through the Snowy Scheme, highlighting its role in balancing electricity network reliability, with the irrigation needs of farmers and other water users. 

Key sustainability achievements in the 2023/2024 financial year include:

  • Producing 3,937 GWh of renewable electricity from our hydro generation assets – enough energy to power around 600,000 homes for a year.
  • Growing our mass market retail brands business to 1.4 million customers, with a focus on delivering authentic, personal customer service.
  • Our retail brand Red Energy recognised with the Customer Satisfaction Award for the 14th year in a row
  • 7,958 students benefitting from Snowy STEM Academy programs
  • Keeping our people safe, reflected in our low Total Recordable Incident Frequency Rate (TRIFR) score
  • Delivering five events of 8-hour peak water flows from Jindabyne reservoir to improve the health of the Snowy River ecosystem
  • Maintaining outstanding reliability across our generation assets, with our hydro generators starting successfully 99.7 per cent of the time, and gas 98.5 per cent of the time, underpinning our ability to contribute to stable electricity supply
  • $557,000 spent through our community giving programs
  • Increasing the proportion of women in senior leadership roles
  • $320,000 of funding for Murray River rehabilitation work to maintain waterflow and prevent erosion 

Snowy Hydro is the third largest generator of electricity in Australia by capacity. We can generate 5,500 megawatts (MW) of electricity across eight hydroelectric power stations, three natural gas power stations, and four diesel power stations. 

Snowy 2.0 and the Hunter Power Project are set to deliver 2,860MW of additional capacity. This significant boost to the network’s capacity will make a meaningful difference to energy supply reliability, particularly on hot days in summer.

When these fast-start generating assets come online, they will enable further wind and solar generation that can displace more than 33 million tonnes of CO2-e per annum. 

This carbon emissions displacement would represent a 28 percent reduction in the National Electricity Market emissions from 2022 levels, and approximately 13 percent of Australia’s 2030 total emissions reduction target.

To learn more about Snowy Hydro’s sustainability journey and access the 2024 report, visit https://www.snowyhydro.com.au/wp-content/uploads/2025/01/Snowy-Hydro_2024-Sustainability-Report.pdf. 

News

HUNTER POWER PROJECT UPDATE

16/12/2024

Testing and commissioning of Snowy Hydro’s fourth fast-start, on demand gas power station has now begun.

This first phase of commissioning involves pressure testing the Hunter Power Project’s (HPP) approximately 23 kilometre network of pipe infrastructure that will deliver gas, diesel and water to the station’s generators. 

Using the latest technology the world’s best manufacturers can offer, HPP will be powered by two of the most gas-efficient turbines available and will be capable of delivering 660 megawatts of electricity to the grid. This significant amount of power will make a meaningful difference to supply reliability, helping the network cope during hot weather and outages of transmission lines and other power stations.

As more wind and solar enters the electricity grid, HPP will play a critical role by providing back-up power to homes and businesses.This means that while HPP is only expected to run around 5 percent of the time, it will enable around 2 gigawatts of renewable energy to be added to the grid, which is the equivalent of displacing around 5 million tonnes of CO2-e every year1.

PHASED COMMISSIONING

Alongside the pipe pressure tests, HPP’s switching station, which was built by Snowy Hydro as part of the project but handed over to Ausgrid to operate, will be connected to provide the power station with energy from the grid. Testing will then progress to commissioning the first of HPP’s two turbines and generators. 

Pending a smooth process, the first turbine and generator is expected to reach full commercial operation by the end of April 2025. Commissioning of the second turbine and generator will follow, with commercial operation of both turbines and generators expected by the end of June 2025. 

Depending on commissioning outcomes, there is a possibility of either turbine being available to provide some power to the grid sooner. These target dates are dependent on the commissioning program not being impacted by weather or other factors.

VALUE AND COST

HPP has experienced extended periods of extreme weather and other factors that have stopped work on the project, impacting its timeline. As flagged in the August 2024 project update, HPP’s cost has been impacted in order to minimise the delay in its completion, so HPP can produce power for the network as soon as possible.

Prioritising power availability means the final cost of HPP is expected to be around $1.3 billion, dependent on a smooth transition to commercial operation without delays from weather or other factors.

Despite the change in cost, the strength of HPP’s economic benefit has increased. HPP’s net present value (NPV), has increased to $914 million from $531 million at the March 2021 final investment decision2. 

This increase in HPP’s economic value has been largely driven by:

  • more wind and solar generation in the grid increasing the need for HPP to provide on-demand, back-up energy to boost electricity reliability;
  • a substantial increase in HPP’s gas storage capacity to 70TJ from 43TJ;
  • HPP’s contribution to managing transmission risk between Sydney and the Snowy Hydroelectric Scheme in the Snowy Mountains, by providing an alternative electricity source for Australia’s largest economy in the event of transmission outages. 

LOCAL BENEFITS

The project is delivering substantial jobs and investment benefits to the Hunter region:

To promote interest in STEM career paths and education, HPP’s team has engaged with local students through career expos and presentations, including through partnerships with the Clontarf Foundation in Kurri Kurri, Youth Express and Training Services NSW. 

$751 million spent domestically, with $619 million spent in the local Hunter region.  

57% of HPP’s workforce are local residents.  

20 apprentices are engaged on the project, providing skill development in the Hunter region.

Over $175,000 has been awarded to 39 local projects through the HPP Community Grants Program.  

Over $26,000 has been granted to Cessnock LGA schools through the Snowy Hydro Local Schools STEM Fund in 2024.  

1Assumes every 1 MW of dispatchable capacity from HPP enables 3 MW of variable renewable capacity and displaces thermal generation with a carbon intensity of 0.94 t/CO2-e/MWh. Scope 1 emissions from HPP are estimated to be approximately 0.14 million tonnes of CO2-e per annum based on a carbon intensity of 0.52 t/CO2-e/MWh.

 2NPVs discounted to March 2021.

News

HUNTER POWER PROJECT – PLANNING MODIFICATION AMENDMENT

03/10/2024

Hunter Power Project (HPP) is set to begin operations in December 2024 with one generator running on diesel during the testing and commissioning phase. 

The second unit and gas introduction will follow shortly, with full operations expected within a few months. 

While the project’s planning modification has proposed increasing diesel operating hours to 1,100 per unit for 2025, Snowy Hydro does not currently expect HPP to operate entirely on diesel in 2025. The purpose of the modification is to provide for the current anticipated completion of the gas pipeline to March 2025 plus appropriate program contingency to ensure the power station can still generate energy in the event of any further delays to the gas pipeline or to the project’s commissioning program.

HPP’s gas pipeline is being delivered by APA Group and is independent of Snowy Hydro’s delivery of the power station. 

Snowy Hydro has updated some of the information submitted to the NSW Department of Planning, Housing and Infrastructure. Previously some of the information was inaccurate and did not accurately reflect our intentions around contingency planning being one of the drivers of the modification.

Once fully operational, HPP will primarily run on gas, using diesel as backup. Gas remains crucial for meeting peak demand and supporting Australia’s renewable energy transition.

News

HUNTER POWER PROJECT DELIVERS LOCAL JOBS AND SKILLS

12/08/2024

Snowy Hydro’s Hunter Power Project (HPP) is leaving a lasting impact on the local workforce, delivering approximately 600 direct construction jobs and crucial skills development for a number of high-demand construction trades.

More than 60% of HPP workers live locally, which is part of Snowy Hydro’s commitment to supporting communities that the company is a part of.

The number of apprentices at HPP is on the increase, with Snowy Hydro working alongside principal contractor UGL to provide an additional 12 apprenticeship positions in June 2024, which includes three females and two First Nations apprentices. New apprentices on site include a boilermaker, nine electricians, and two mechanical fitters.

Snowy Hydro CEO Dennis Barnes said HPP will be good for jobs long after construction is complete.

“We are proud of our contribution to the construction, engineering, and infrastructure sector here in the Hunter, especially given the current tradespeople shortages in Australia.

“This project will have a lasting impact on the size and proficiency of the local workforce”

Mr Barnes said.

”A job on HPP will help set our team up for a rewarding career and a bright future.”

Electrical apprentice Daniel Battle said he became interested in the electrical trade after working as a Trades Assistant on the project.

“This apprenticeship is giving me the necessary skills, knowledge, and experience while working to a high standard within the industry to become an electrician,” Mr Battle said.

Apprentice boilermaker Jackson Scott said he was passionate about fabrication and welding. “I was very lucky to be offered an apprenticeship shortly after starting at HPP.

“HPP is preparing me to have a successful career contributing to important infrastructure in our country, and I’m extremely grateful,” Mr Scott said.

Electrical apprentice Camilla Lindeberg said she worked as a cleaner for seven months before applying for an apprenticeship.

“I never thought of being an electrical apprentice until the opportunity presented itself, and I’m excited for what the future holds.

“The challenge of learning something new and directly contributing to building HPP gives me a great sense of achievement and sets me up for a whole new career with endless opportunities,” Ms Lindeberg said.

Snowy Hydro is also looking to the future workforce through its community support programme.

In 2024, Snowy Hydro extended its Local School STEM Fund to the Cessnock LGA where HPP is located. More than $26,000 was awarded to schools in the area to foster learning opportunities and career pathways for local young people with a focus on STEM.

From left to right: Daniel Battle, Camilla Lindeberg, and Jackson Scott.
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

MAJOR MILESTONE REACHED FOR HUNTER POWER PROJECT

19/06/2023

The second of two generator stators that will power Snowy Hydro’s Hunter Power Project has arrived onsite at Kurri Kurri after its journey from the Port of Newcastle late last night.

The 150-metre-long convoy containing the 314-tonne generator stator left the Port of Newcastle at 9pm on Saturday evening and arrived at the Kurri Kurri site at 2am on Sunday, where it was unloaded and positioned for installation.

The convoy included six prime movers, four police escort vehicles and four pilot vehicles.

The first generator was transported two weeks ago and travelled the same route to Kurri Kurri from the Mayfield berth, via Industrial Drive, Maitland Road, Newcastle Inner City Bypass and the Hunter Expressway.

The two generator stators were prepared for transportation at the port over a period of two days after arriving from Japan late last year and earlier this year.  When installed, the generators will spin from the power of the two open cycle gas turbines (OCGTs), which in turn will generate the 660 megawatts of electricity the Hunter Power Project is delivering for the National Electricity Market.

Snowy Hydro CEO Dennis Barnes said this project milestone was the result of months of meticulous planning from the Hunter Power Project team.

“Moving these two large components of the power station to our construction site required many months of work and liaison with the Port of Newcastle, the team at Mitsubishi in Japan, and local engineered transportation company Rex Andrews.

“Investment in dispatchable generators like the Hunter Power Project is vitally important as Australia transitions to renewable energy, which will ultimately benefit the environment and future generations,” Mr Barnes said.

The Hunter Power Project is expected to be operational by 2024.

News

SNOWY HYDRO AND APA SIGN TRANSPORT, STORAGE AND DEVELOPMENT AGREEMENTS FOR THE HUNTER POWER PROJECT

20/06/2022

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.”

News

Asset Inspection & Maintenance

20/07/2015

Snowy Hydro is again trialling the use of unmanned submersible vehicles to monitor the condition of hard to access Scheme assets.

While the Snowy Scheme is one of the civil engineering wonders of the modern world, many of its assets are difficult to reach due to the Snowy Mountains terrain and the challenges associated with the sheer volume of water flowing through the Scheme.

With the help of Perth-based company Synaya, the Civil Engineering and Dam Safety team are using a Mini Remotely Operated Vehicle (ROV) to conduct inspections of some of our hard to access assets, such as the Guthega Surge Tank and Island Bend intake structure.

The ROV is a small, submersible vehicle operated from the surface of the water via a tether.  Equipped with miniature high-resolution cameras, lights and video recording equipment, they can be used to assess the condition of underwater civil assets.  The information they collect determines future inspection frequencies, maintenance requirements and accurate scoping of projects.

The Mini-ROV, a Seabotix LVB150 weighing approximately 12 kilograms, was used as part of a successful trial where a variety of tests were performed to assess its manoeuvrability, visibility and access.  Results showed that these observation vehicles reduce the safety risk to staff by eliminating the need for someone to physically enter tunnels for inspections, reduce the environmental impact associated with dewatering assets and they also reduce the need for extensive outage times.

It also provides access to extensive visual data, which can be referenced in the future to more accurately assess what stage of the asset’s lifecycle it’s in.

Using technology of this kind is not new for Snowy Hydro; in 2013, we used a larger unmanned underwater vehicle to inspect multiple tunnels within the Scheme for maintenance.  We were awarded an Australian Business Award for Innovation and also broke a world record for the longest, unmanned underwater tunnel inspection. We have also trialled the use of unmanned aerial vehicles, or drones, to inspect our assets from the air.

In future, this unmanned technology will continue to be used to inspect difficult to access assets of the Scheme ensuring the safety of our people and keeping our assets in peak condition.