News

SNOWY HYDRO BOOSTS NOT-FOR-PROFIT GROUPS WITH COMMUNITY GRANTS OF UP TO $10,000

27/03/2024

Snowy Hydro continues its strong commitment to supporting local communities by announcing the opening of the first round of funding for its 2024 Community Grants Program. Through this bi-annual program, Snowy Hydro supports not-for-profit organisations and community groups to foster social, economic and regional resilience across the Snowy Mountains.

In 2023, Snowy Hydro proudly provided $300,000 in community grant funding to various projects, including care packs for cancer patients, improvements to the Gudja Gudja cultural reserve, playground equipment, a youth mentoring program, new displays for heritage museums, and support for many local events and festivals.

The Snowy Hydro Community Grants Program attracts numerous applications each round, reflecting the region’s high demand for funding support.

To increase the chances of success, applicants must align their submissions with Snowy Hydro’s four community commitment pillars: education and development, health and wellbeing, regional capacity building, and environment. All applications must address the specified assessment criteria and meet the eligibility requirements.

Funding opportunities are available across the three Local Government Areas (LGAs) where Snowy Hydro operates its hydro assets. Grants of up to $10,000 are on offer to support local projects, festivals, events, and initiatives that contribute positively to the communities of the Snowy Mountains and surrounding areas.

Interested parties are encouraged to submit their applications online through the Snowy Hydro website.

Notably, for the 2024 funding round, Snowy Hydro has introduced a new application system to streamline the process. The grant platform allows applicants to register and have their own dashboard to track the application. Application saving and returning is possible, and additional members of your group can be invited to provide input into the application.

The deadline for submissions is Sunday, 7 April 2024.

For more information about Snowy Hydro’s Community Grants Program, visit: https://www.snowyhydro.com.au/communitygrantsprogram/

News

100,000 SNOWY 2.0 TUNNEL SEGMENTS LOCALLY MANUFACTURED

29/02/2024

The Snowy 2.0 Cooma precast manufacturing facility has hit another significant milestone and completed production of 100,000 of the 130,000 concrete segments needed to line 27 kilometres of tunnels for the pumped-hydro megaproject.

More than 230,000m3 (or more than 550,000 tonnes) of concrete has been used to manufacture these seven-tonne precast segments, installed by the three tunnel boring machines (TBMs) used on the Snowy project.

Snowy Hydro CEO Dennis Barnes said it was pleasing for the project to be manufacturing and investing locally, while also providing employment opportunities.

“About 200 people from the 3,000-strong Snowy 2.0 workforce work at the precast factory operated by our project contractor Future Generation Joint Venture,” Dennis said. “The facility supports local employment and also on-the-job training for a number of school-based apprentices from Monaro High.”

The precast facility includes a concrete batching plant and onsite laboratory to check the quality of every segment produced. Many of the raw materials like aggregates are sourced from local quarries at Mt Mary and Nimmitabel.

Careful consideration and design of the concrete mix, which includes waste material, has meant significant reduction in the environmental production footprint while improving the segments’ durability and performance.

Carousels utilising robotics to automate the process of demoulding, cleaning and application of the release agent on the segment moulds have been used in the manufacturing process.

One of the two carousels has now been modified to produce the precast segments for the Snowy 2.0 inclined pressure shaft (IPS). This very steep 1.65km shaft will be excavated by TBM Kirsten and will link the underground power station with the headrace tunnel coming from Tantangara.

The IPS segments involve a world-first force-activated coupling system (FACS) designed to withstand the powerful internal forces of water moving through the 10-metre diameter inclined tunnel.

Installing segments with FACS eliminates the need for a second tunnel lining, thereby improving the quality, safety and the rate of tunnel completion.

The Snowy 2.0 precast factory will produce approximately 9,000 IPS segments, with nine used in each tunnel-lining ring. The first ring prototype has been completed, with mass production expected to start next month.

FAST FACTS

Number produced = 100,000

Concrete used = About 550,000 tonnes or 230,000 cubic metres

Segment weight = 7 tonnes

Installation method = tunnel boring machine

Equivalent rings (nine segments per ring) = 11,111

Tunnel lining length = 22.2 kilometres

News

SNOWY 2.0 PROJECT UPDATE – FEBRUARY 2024

28/02/2024

The new Snowy 2.0 power station will boast the latest in hydro technology, delivered by our expert subcontractor Voith Hydro. In the latest project update, Snowy 2.0 mechanical engineer Mahali Heffner details how quality assurance activities and factory acceptance testing is carried out on each power station component.

Every one of the hundreds of pump-turbine-generator components undergoes rigorous testing before it leaves the Voith factory. This is to ensure they meet high quality standards and will operate reliably when the power station is switched on.

A team of Snowy Hydro and independent assessors recently conducted mechanical and hydraulic dimensional checks on the first Snowy 2.0 runner at the Voith factory in Shanghai, China.

The runner is the heart of a hydro turbine – it’s the rotating element that drives the generator to produce power.

Acceptance testing includes checking the profile of the blades and surface examinations.

Dye penetrant testing is used to identify imperfections on the surface of the 31 tonne, 4.2 metres-wide runner. We spray on a red dye, clean it and apply the developer. If imperfections are present, the dye will make them visual.

Snowy Hydro and contractor Future Generation Joint Venture (FGJV) work with Voith and other subcontractors on a range of quality assurance activities as part of the multi-stage manufacturing process.

At Lobs Hole in the Snowy Mountains, power station components including turbine guard valves, spiral cases and draft tube liners are being progressively delivered to site.

Meanwhile, deep underground, excavation of the machine hall and transformer hall cavern crowns have been completed and we’ve almost finished the final side slashing to widen the structures. Drill and blast works are also continuing in the cross passages and tunnels that are an important part of the power station complex.

At the other end of the project at Tantangara, the intake is really starting to take shape. We are well into stage two of the excavation, now approximately 49 metres below ground level and approximately six metres to go.

We map the cut face to determine what rock support is required and then after the design is confirmed, rock bolts and shotcrete are installed. It’s exciting to see the shape of the transition from intake to tunnel, with the canopy tube rock support in the intake face forming an arch above the tunnel entrance.

Drill and blast of the tunnel excavation is scheduled to start soon and the first milestone target will be to link up the intake with the gate shaft.

News

SNOWY HYDRO STEM FUNDING FOR LOCAL SCHOOLS NOW AVAILABLE

19/02/2024

Following the success of the inaugural Snowy Hydro Local School STEM Fund in 2023, the funding program focused on science, technology, engineering and maths (STEM) excursions will run again in 2024. Snowy Hydro will extend the opportunity for Snowy Mountains and Cessnock schools to apply for grants of up to $10,000.

Recognising that today’s students are tomorrow’s workforce, Snowy Hydro plays a pivotal role in supporting teachers and students by aligning educational programs with industry expertise.

Last year these grants provided thousands of students and 18 Snowy Mountains schools – primary and secondary, both public and private – hands-on interactive STEM experiences.

The program is part of Snowy Hydro’s ongoing commitment to local regions, which already supports various STEM initiatives, including a First Nations Science Camp, the development of a robotics club, 3D printers, an aquaponics project and the enhancement of school resources for the next generation of innovators.

Snowy Hydro CEO Dennis Barnes said: “Snowy is dedicated to fostering education opportunities in and out of the classroom and assisting in developing career pathways.
“The funding is just one example of Snowy Hydro’s ongoing commitment to education and development in support of STEM, particularly among our local communities.”

The funding program complements Snowy’s successful Snowy STEM Academy, the annual Science of the Snowy Scheme Competition, and the unique tailored programs for local schools.

Applications for the 2024 Local School STEM fund open Monday 26 February and must be lodged by Monday 25 March.

Local schools can apply for funding of up to $10,000 to support science, technology, engineering, and maths (STEM) related excursions, student sponsorship, equipment, and camps.

All applications must be completed online via the Snowy Hydro website.

For more information about Snowy Hydro’s Local School STEM fund and to apply visit: https://www.snowyhydro.com.au/local-school-stem-fund-2024/

News

SNOWY 2.0 PROJECT UPDATE – JANUARY 2024

31/01/2024

Deep underground at Lobs Hole in the Snowy Mountains is the heart of Snowy 2.0, the pumped-hydro expansion of the mighty Snowy Scheme. It’s where we’re building a huge power station complex that will house equipment capable of generating 2,200 megawatts of renewable energy.

In this month’s update we’re celebrating a major power station construction milestone – the breakthrough blast of the machine hall cavern crown.

With excavation of the crown – or ceiling – of the cavern taking place from both ends, the final three metres of rock are drilled and charged with explosives according to a precise blast plan.

The tunnels are cleared and the shotfirer arms the electronic blasting system which uses a unique electrical pulse to initiate firing of the explosives.

According to Snowy 2.0 project director Dave Evans, the machine hall achievement signals further progress after the recent transformer hall cavern crown breakthrough and restart of tunnel boring machine Florence in the headrace tunnel at Tantangara.

“These milestones are only possible with the whole team working together as one, whether they are subcontractors like Orica, the company managing underground blasting operations, or the lead contractor Future Generation and Snowy working so closely together.”

To see the latest Snowy 2.0 project’s statistics, view the fact sheet here.

As the underground drill and blast works continue, the manufacturing of major hydropower components for Snowy 2.0 is also well underway.

Snowy Hydro senior quality engineer Victor Teo is based for part of the year in Shanghai, where Voith Hydro – the company producing major power station equipment for Snowy 2.0 – has a large facility.

He also travels to nearby cities including Zhuji and in his quality and compliance role, participates in factory acceptance tests and hold point inspections for components being fabricated by subcontractor Shenke such as the draft tube liners and cones, and the huge stator frames.

The draft tube liners funnel water into and out of the power station turbines and are comprised of six segments. They are 4.6 metres high, 30 metres long and weigh 40 tonnes when assembled.

The six stator frames that house the generator are fabricated in two halves and are welded together for a total weight of more than 400 tonnes.

Snowy Hydro has an integral part to play in establishing high standards of equipment manufacturing, which meet the engineering requirements for our critical Snowy 2.0 project infrastructure.

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

BREAKTHROUGH MILESTONE FOR SNOWY 2.0

05/01/2024

Snowy Hydro is pleased to announce another major achievement for the Snowy 2.0 pumped-hydro project, with the breakthrough of the final three metres of the power station’s 223-metre long transformer hall cavern crown.

The Snowy 2.0 delivery team began excavating the transformer hall and machine hall caverns in June 2023. The Snowy 2.0 power station will be located approximately 800m underground at Lobs Hole in the Snowy Mountains. When completed, the machine hall will be 251 metres long and 52 metres high and the transformer hall 223 metres long and 46 metres high. Together they will form one of the largest and deepest caverns in the world, big enough to fit the Sydney Opera House inside.

Precise drill and blast methods are used to profile the curved cavern crowns (or ceilings) and break up the rock, which is mucked out and followed by surface scaling to remove any remaining loose rock. The exposed solid rock face is then supported with rock bolts and shotcrete. The excavation sequence of the cavern crowns is carefully planned and executed, as the rock mass relaxes and moves inwards as the excavated void increases. These movements are expected and are closely monitored during the process.

So far, about 17,000 cubic metres of material has been excavated from the central heading of the transformer hall cavern crown. The heading has been advanced in 3-4 metre rounds from either end of the cavern for a total of 77 blasts.

The machine hall cavern crown breakthrough will take place in coming weeks, and widening of both cavern crowns, known as side slashing, is ongoing and planned for completion in coming months. Excavation of both power station caverns is set to continue through 2024.

The breakthrough of the transformer hall cavern crown represents another important milestone for the Snowy 2.0 pumped-hydro project that will significantly expand the existing Snowy Scheme and will provide an added 2,200 megawatts of on-demand power and 160 hours of large-scale renewable energy storage for the National Electricity Market.

Snowy Hydro CEO Dennis Barnes said: “The breakthrough of the transformer hall cavern crown is a really pleasing milestone for the Snowy 2.0 team, reinforcing that we’re making good progress with our underground drill and blast excavation activities. We are well on our way to delivering the largest single project that will help ensure Australia’s secure and reliable transition to renewable energy.”

News

MILESTONE FIRST TUNNEL COMPLETED FOR SNOWY 2.0

11/10/2022

Snowy Hydro is celebrating the completion of excavation for its first tunnel for Snowy 2.0, with the Lady Eileen Hudson tunnel boring machine (TBM) reaching the location of the new underground power station cavern.

The 11-metre diameter TBM has excavated 2.85km to create the main access tunnel at Lobs Hole in the Snowy Mountains, where a workforce of more than 2,200 people are building Snowy 2.0 – the 2,000 megawatt pumped hydro expansion of the mighty Snowy Scheme.

Snowy Hydro acting CEO Roger Whitby said the tunnelling achievement was a significant milestone, with Snowy 2.0 set to underpin the nation’s transition to renewables.

“Snowy 2.0 will not only provide on-demand, quick-start generating capacity for the National Electricity Market (NEM), but a massive 350,000 gigawatt hours of energy storage,” Mr Whitby said.

“This is our first new major tunnel excavation in decades, since construction of the original Scheme, and it gives us access to the site where we will create the enormous cavern 800m underground that will house our power station.

“The TBM Lady Eileen Hudson and our teams from Snowy Hydro and contractor Future Generation Joint Venture have done a great job to complete this critical tunnelling task.

“However, there’s no slowing down. Work across the project continues to move ahead rapidly and this tunnel boring machine is now being dismantled so it can be moved to the Talbingo adit where it will be reassembled with some new components for excavation of the 6km tailrace tunnel.”

While dismantling of the TBM conveyor belt gets underway in the main access tunnel, drill and blast activities are ongoing to excavate cross passages and tunnels to gain access to the power station complex, which will include a 251m-long, 52m-high machine hall cavern and 223m-long, 46m-high transformer hall cavern.

The new work fronts associated with the powerhouse will create further employment opportunities on this clean energy mega-project.

The Snowy 2.0 project will link Tantangara Reservoir (top storage) with Talbingo Reservoir (bottom storage) through 27km of tunnels and a power station with pumping capabilities.

This will enable water to be released for energy generation at times of peak demand and then pumped back to the top storage when there is excess renewable energy in the system, ready to generate again.

Main access tunnel fast facts:

10 metres in diameter
Lined with 1,422 concrete rings installed by the TBM
Rings comprise 12,798 individual segments manufactured locally in Cooma
Has four cross-passages linking it to the adjacent emergency, cable and ventilation tunnel
Also has four cross tunnels and a turning bay to facilitate construction access around the power station complex
Provides pedestrian and vehicle access into the power station

News

MILESTONE FOR LOCAL SNOWY 2.0 CONCRETE SEGMENT FACTORY

09/08/2022

Snowy Hydro’s Snowy 2.0 precast factory in Cooma has achieved an impressive milestone, with manufacturing completed for all concrete segments that will line the dry access tunnels.

More than 25,000 of these seven-tonne segments have been produced at the Polo Flat factory, which employs 120 people from the 2,100-strong Snowy 2.0 workforce. The segments are being used to line the main access tunnel and emergency, cable and ventilation tunnel at Lobs Hole.

In total, 36,000 or 27% of the 130,000-plus segments needed to line all of the Snowy 2.0 tunnels have now come off the Polo Flat production line, said Paul Broad, Snowy Hydro’s Managing Director and CEO.

“We’re proud to be manufacturing and investing locally, and providing employment opportunities for local people as well,” Mr Broad said. “The precast factory is operated by our principal contractor Future Generation Joint Venture and it is powering along.

“To efficiently and safely produce enough of these massive concrete segments to line the 5.6 kilometres of dry access tunnels is a terrific achievement.”

The factory supports the operation of the three Snowy 2.0 tunnel boring machines, which are excavating 27 kilometres of tunnels from Tantangara Reservoir to Talbingo Reservoir for the Snowy 2.0 pumped-hydro expansion of the Snowy Scheme.

The Polo Flat facility includes a concrete batching plant and segment manufacturing from two automated carousels, producing up to 24 rings, each one made of nine segments, per day.

Many of the raw materials like aggregates and sand are sourced from the local Schmidt Quarries at Mt Mary and Nimmitabel, which is reducing transport time and costs. Concrete is mixed within the batching plant, which is then transferred into the factory and poured into specially-designed moulds.

With the use of innovative robotics, the moulds progress along the carousel as the segments cure and finish. There is an onsite laboratory and testing to check the quality of every segment produced.

Snowy 2.0 is leading the way in Australia to successfully deploy and use robots to automate the process of demoulding, cleaning and application of the release agent on the moulds, before pushing them through to the next production stage. This has allowed the factory to maintain a safe and low-noise working environment for workers.

It takes approximately eight to 10 hours to cure and de-mould each segment from start to finish, then they are stored for about two weeks before being transported to site, loaded into TBMs and installed in the tunnels.

FAST FACTS – DRY TUNNEL SEGMENTS

Number produced = 25,210
Distance if all these segments were placed side-by-side = 86.3 kilometres
Tonnes of concrete used = 151,260
Equivalent rings (nine segments per ring) = 2,802
These segments – designed to provide durability under extreme fire loads – have been laboratory tested for fire loads of 1,350 degrees Celsius for up to 120 minutes.

Snowy 2.0 project background: Snowy 2.0 is a nation-building project that will underpin thousands of megawatts of renewables and will continue to keep the lights on for generations to come.

Snowy 2.0 will link two existing Snowy Scheme reservoirs, Tantangara and Talbingo, and its new power station with six pump-turbines will be located about 800m underground. Water in the top storage will be released for energy generation at times of peak demand and pumped back at times when there is excess renewable energy in the grid, so Snowy 2.0 is ready to meet demand when needed.

News

JINDABYNE DAM SPILL

20/12/2021

Following recent significant rainfall events, Jindabyne Dam reached full supply level (FSL) today and commenced spilling into the Snowy River this morning.

Up to 140mm of rain was recorded in Snowy Scheme catchments over the weekend, continuing what has been a very wet year and the wettest November/December since 1992.

The spillway is likely to continue to operate intermittently for the next few days and Lake Jindabyne will remain very close to FSL this week.

With further storm activity forecast for the Christmas weekend and limited opportunities to pump water from Lake Jindabyne into the Murray River catchment, it is expected the spillway may operate again by the end of the week.

Snowy Hydro is working closely with NSW Department of Planning, Industry and Environment (Water) to identify opportunities to make controlled releases and manage downstream impacts. Dam safety is paramount at this time and the spillway gates will automatically release water to return the storage to 100%.

Lake levels are anticipated to remain high for at least the next month, with continuing wet weather predicted in the seasonal outlook.

For the community the most important message is to stay safe and well-informed. The public can stay updated about flood alerts here:

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.

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 Feasibility Study Delivered

20/12/2017

Snowy Hydro’s independent Board of Directors has approved the Snowy 2.0 feasibility study, and for further work to be undertaken for the project to progress to a final investment decision in 2018.

The feasibility study released today confirms that the Snowy 2.0 pumped hydro expansion project is both technically and financially feasible. The comprehensive study provides a base case design and a strong investment case that exceeds Snowy Hydro’s stringent investment hurdles, with significant input from leading experts in economics, engineering and geology.

Snowy Hydro’s CEO, Paul Broad, said that progressing Snowy 2.0 was a strategic business decision and the projected return on investment would enable the company to fund the project.

“Snowy Hydro already plays a critical role in keeping the lights on but Snowy 2.0 would supercharge our existing capabilities by adding an additional 2,000 megawatts of dispatchable generation and 350,000 megawatt hours of large-scale storage.

“Snowy 2.0 will underpin the security and reliability of the National Electricity Market (NEM) as we transition to a low emissions future, at least cost to consumers.

“As coal-fired generation retires and renewables continue to grow, Snowy 2.0’s scale and central location will provide secure and reliable energy generation and the necessary large-scale storage to prevent blackouts and lower future energy prices.

“Snowy 2.0 is a strategic long-term investment in the NEM that will firm up future wind and solar generation. Intermittent renewables underpinned by Snowy 2.0 is a combination that could replace baseload generation when coal-fired power stations retire,” Mr Broad said.

The feasibility study outlines:

A strong investment case for the project and funding strategies.
A base case technical design, to be further refined as the project moves to final investment decision.
The independent estimation of costs between $3.8 – $4.5 billion, which takes into account the need for extensive reinforcement of the project’s structures due to the challenging geological conditions that were uncovered during the geotechnical drilling program.
If Snowy 2.0 is not built, the NEM would need a combination of batteries and gas peaking stations to meet future energy needs. This would cost at least twice as much as Snowy 2.0.
A project schedule that will see the first power generated from Snowy 2.0 in late 2024, in time to meet market needs.

“Completing this study is a significant and exciting milestone for us but it’s only just the beginning. The sheer size of Snowy 2.0 makes it a complex and significant project that will put the Snowy Mountains back in the global spotlight,” Mr Broad said.

Between now and final investment decision, Snowy Hydro will undertake further work including additional geotechnical drilling, issuing project tenders, finalising funding for the project and working through well established and rigorous environmental and planning approval processes.

The project will also boost economic activity across the Snowy Mountains from employment opportunities across the supply chain and in supporting services.

Snowy Hydro would like to acknowledge the work of our lead study engineer SMEC Australia and the Australian Renewable Energy Agency for their contributions to the study.

The feasibility study and more information on the project can be found on our website here.

To watch a video on the project click here.