Snowy Hydro Limited has been given the green light to proceed with the Snowy 2.0 project.
The historic deal will see a high-tech expansion of the iconic Snowy Mountains Scheme and will help make renewables reliable, reduce volatility and drive affordability in energy markets and provide other services critical to the security and stability of the NEM.
Following the Snowy Hydro Board’s final investment decision on 12 December 2018, the Federal Government has reviewed the project’s business case and is satisfied that the project stacks up and will benefit energy consumers and the Snowy Mountains region.
“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 eight per cent 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.”
The Government will commit up to $1.38 billion in an equity investment for Snowy 2.0, with the remainder of the project to be financed by Snowy Hydro Limited.
Snowy 2.0 will create up to 2,400 jobs in construction and support up to 5,000 direct and indirect jobs across the Snowy Mountains region, providing opportunities for local businesses, improvements in local infrastructure and increased economic activity.
Planning for the Snowy 2.0 project is well advanced. The Government’s decision green lights the project to progress to the early works stage.