The Snowy 2.0 Plan has received Federal Government approval, allowing the project to progress to the early works stage.
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.
Prime Minister Scott Morrison said the Federal Government was pleased to announce shareholder approval has been given for Snowy Hydro Limited (Snowy Hydro) to proceed with Snowy 2.0.
Following Snowy Hydro Board’s final investment decision on 12 December 2018, the 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.
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 increase generation capacity by 2,000 megawatts and provide 175 hours of energy storage – enough to power the equivalent of 500,000 homes during peak demand. Importantly, this will also put downward pressure on wholesale electricity prices.
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 project received NSW Government approval for exploratory works in early February 2019.
This decision builds on the Federal Government’s investment in Snowy Hydro following the acquisition from the New South Wales and Victorian governments on 29 June 2018.
It has also backed electricity supplies in Tasmania and Victoria with a new $56 million investment in the Marinus Link to support Tasmania’s Battery of the Nation project.