News

Snowy turns 70 as a new generation writes its next chapter with Snowy 2.0

19/10/2019

Seventy years ago we started something many people thought was impossible. The first blast near the township of Adaminaby in New South Wales marked the start of Australia’s greatest engineering achievement of the 20th century. 

The grit, mateship and expertise of more than 100,000 men and women turned a bold vision into a reality. It’s hard to imagine Australia today without the mighty Snowy Scheme. The legacy of the Snowy extends well beyond the dams, tunnels and hydro stations to the incredible people behind the power.   

Over the 25 years of construction, two thirds of the workforce came to Australia from war-torn Europe. They came to the Snowy in search of a better life and alongside the Aussies, helped build a nation. The Snowy Scheme is the birthplace of the culturally diverse society we know today, and with the Italians came one of the nation’s first espresso machines.

The project had its origins in the 1880s as a way to counter the disastrous effects of drought, by diverting the rivers of the Snowy Mountains westward to irrigate the fertile inland plains. Its hydro-electric power and irrigation water became the foundation of our modern economy.

The Snowy Scheme was one of the first renewable energy projects and continues to keep the lights on at times of peak energy demand.

Over the years, Snowy Hydro has grown into a dynamic energy company and remains a key pillar of the energy market, providing reliable and affordable renewable energy to households and businesses across the Eastern States.

In our 70th year, Snowy’s role in the energy market is more relevant than ever and we’re looking ahead to the next 100 years as we embark on our new chapter with Snowy 2.0.

As Australia moves to a low-carbon economy, there is a critical need for large-scale storage capacity and on-demand generation. Snowy 2.0 is the largest committed renewable energy project in Australia and will underpin the nation’s secure and stable transition to a low carbon emissions future at the lowest cost for consumers.

As we did many years ago, we are facing energy market challenges and Snowy 2.0 is a big part of the solution. As we reflect on the past, we’re building for the future. That’s the power of Snowy. 

News

Keeping the lights on for generations to come

26/02/2019

At Snowy, we have a proud history and a strong vision. Snowy Hydro, supercharged by Snowy 2.0, will underpin Australia’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 Board’s Final Investment Decision, we welcome Shareholder approval of Snowy 2.0.

“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 8% 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.

“We 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,” 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 2.0’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 ‘fill the gaps’ by generating energy at times of peak demand.

Snowy Hydro has a strong track record when it comes to pumped-hydro. For decades we’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.