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

TagEnergy and Snowy Hydro ink momentous renewable Power Purchase Agreement

21/08/2023

Snowy Hydro to purchase 40 percent of Golden Plains Wind Farm energy and green certificates

Global clean energy enterprise TagEnergy has signed a significant renewable Power Purchase Agreement (PPA), entering a deal that will see Snowy Hydro take 40 per cent of the energy and green certificates (LGCs) generated by the 756MW first stage of Golden Plains Wind Farm.

This transaction is the first PPA for the Golden Plains Wind Farm since the first stage of the 1,300MW mega project near Geelong, Victoria achieved financial close in November 2022 on a merchant basis, which was unique at the time.

It comes as TagEnergy negotiates further PPAs for the project that has generated significant interest for its quality and location.

Franck Woitiez, Chief Executive Officer, TagEnergy said achieving financial close of Golden Plains Wind Farm East without the need for PPAs proved the effectiveness of its innovative investment approach.

“Now, this landmark PPA with Snowy Hydro proves our strategy to progressively contract the energy production during construction and operation. It also reflects the confidence major industry players like Snowy Hydro have in our large-scale renewables project expertise,” Mr Woitiez said.

“We are proud to enter this agreement with Snowy Hydro as we both work to ensure energy security and accelerate the transition to renewable energy as part of a rapidly growing industry,” he said.

The transaction has helped enable Snowy Hydro to secure a significant portion of its energy and LGC needs with a quality project that is at an advanced stage.

Snowy Hydro Chief Executive Officer, Dennis Barnes, said “our partnership with TagEnergy is a significant step in supporting the decarbonisation of the National Electricity Market and further enabling Australia’s transition to renewables.”

Snowy Hydro Chief Commercial Officer, Gordon Wymer, added, “TagEnergy has succeeded in developing an investment structure that provided optimal outcomes for all stakeholders. This has enabled Snowy to continue to expand its ability to provide clean, green, cost-effective renewable energy to our customers, and paves the way for further cooperation with TagEnergy on other developments.”

Construction on the $2bn, 756MW stage one development featuring 122 turbines officially began in April 2023 following months of early works including road upgrades. It is expected to start producing renewable energy in the first quarter of 2025.

The estimated annual emissions abatement is an average 770,000 tonnes CO 2 -e, or more than 23 million tonnes CO 2 -e over the project’s 30-year lifetime.

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

SNOWY HYDRO SIGNS NEW RENEWABLE ENERGY DEAL

20/06/2022

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.

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

SA Solar Investment

01/02/2017

Snowy Hydro Limited will invest in a battery ready 100 megawatt solar facility in Tailem Bend in South Australia to boost its generation capacity and grow its electricity retail business – Lumo Energy.

By entering into a long-term agreement with experienced renewable energy investor and developer Equis, Snowy Hydro will be able to access 100 megawatts of renewable solar generation on completion of the solar farm in 2018, with the ability to install up to 100 megawatts of large-scale battery storage on the Tailem Bend site.

“This is an exciting opportunity for Snowy Hydro to source renewable generation in South Australia to complement our existing capacity,” Snowy Hydro CEO and Managing Director Paul Broad said.

“The solar farm represents a significant, strategic investment in South Australia by Snowy Hydro and demonstrates our commitment to growing both our generation business and our Lumo Energy business, which services around 50,000 electricity customers in the State.

“We are pleased to be working with Equis to deliver more renewable energy to South Australia, backed by reliable fast-start thermal capacity. Importantly, this unique generation facility at Tailem Bend is also ‘battery ready’ with the ability to install up to 100 megawatts of large-scale battery storage on the site.”

David Russell, CEO of Equis, said: “As Asia’s largest renewable energy developer and investor, the Tailem Bend solar project represents an exciting expansion into Australia for Equis and an unique opportunity to leverage our development and construction expertise to deliver large scale, reliable renewable energy for Australian consumers.

“We are delighted to partner Snowy Hydro on the Tailem Bend solar project to build one of Australia’s lowest cost solar generation projects with a unique “battery-storage ready” design, further enhancing the project’s long term attractiveness as a stable, low cost source of power.”

Snowy Hydro currently owns and operates 5500 megawatts of generation capacity across Australia, including the iconic 4100 megawatt Snowy Hydro-electric Scheme in the Snowy Mountains region of NSW.

The Tailem Bend project will mean Snowy Hydro has access to 264 megawatts of generation capacity in South Australia. The company already operates 136 megawatts of thermal capacity at Port Stanvac and Angaston and will add a further 28 megawatts of diesel generation at the Tailem Bend site from 2017.

“We combine the power of the mighty Snowy Scheme with gas and diesel fired peaking generators to deliver a flexible and reliable mix of energy to our growing customer base every day,” Mr Broad said.

“We have been keeping the lights on in NSW and Victoria since construction days in the 1950s and are one of the most experienced and diverse companies operating in the National Electricity Market.

“Through our award winning retail companies – Red Energy and Lumo Energy – Snowy Hydro services more than one million gas and electricity customer accounts. We pride ourselves on superior customer service and look forward to growing our Lumo Energy retail customer base in South Australia.”