Keeping the lights on for generations to come

26 February 2019

At Snowy, we have a proud history and a strong vision. Snowy Hydro, supercharged by Snowy 2.0, will underpin Australiaโ€™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 Boardโ€™s Final Investment Decision, we welcome Shareholder approval of Snowy 2.0.

โ€œItโ€™s an exciting time for our Company,โ€ Snowy Hydro CEO Paul Broad said. โ€œSnowy 2.0, like the original Snowy Scheme, is a nation building project that is vital to Australiaโ€™s economy and our energy transition.

โ€œThis 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 Australiaโ€™s ageing fleet of thermal power stations. In short, it will keep our energy system secure.

โ€œSnowy 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.

โ€œWhen 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.

โ€œWe 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,โ€ 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 2.0โ€™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 โ€˜fill the gapsโ€™ by generating energy at times of peak demand.

Snowy Hydro has a strong track record when it comes to pumped-hydro. For decades weโ€™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.

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