News

Australian Govt green lights Snowy 2.0 Main Works

15/07/2020

The Australian Government has given environmental approval for Snowy 2.0’s Main Works, which will create up to 4,000 jobs, drive significant infrastructure investment and underpin Australia’s renewable energy future.

The approvals include almost $100 million in offsets, which will be invested in conservation and recreational projects in Kosciuszko National Park that will benefit the local environment and park users.
Snowy Hydro’s CEO Paul Broad said the Federal Government’s approval on 30 June 2020 now finally cleared Snowy 2.0 to go ahead.

“This is the final approval for Main Works including the tunnelling after a comprehensive and robust assessment process,” Mr Broad said.

“This is a very exciting day for Snowy Hydro and marks a major achievement in our vision to become Australia’s biggest battery and storage for renewable energy.

“Snowy 2.0 will provide 2,000mw of new peaking power and firming capacity that will provide clean and reliable energy to millions of Australians.

“We’re now moving full steam ahead with this vitally important project for Australia’s future.

“Snowy 2.0 is already playing a major part in kick-starting the local economy, with more than 100 local businesses involved and $35 million spent in the Snowy Mountains region.

“To date, more than 500 people are working on the project as we progress the Exploratory Works that have been approved and underway for more than 12 months,” Mr Broad said.

There has been significant project activity at the Lobs Hole work site, with access roads and permanent bridges built, an initial construction camp established and excavations at the main access tunnel portal, in preparation for the first tunnel boring machine, which is expected to arrive in the coming months.

The Main Works will see construction continue to ramp up and will include an underground pumped-hydro power station, a range of tunnels, chambers and shafts, and roads, power and communications infrastructure.

“For a small permanent and mostly temporary construction footprint covering just 0.1% of the park, Snowy 2.0 will deliver 2,000MW of clean energy and large-scale energy storage to support many other wind and solar projects coming online,” Mr Broad said.

“We have been operating in Kosciuszko National Park for more than 70 years and we are committed to seeing it left in better shape for future generations.

“Snowy 2.0 will continue to be a major economic boost for local and regional communities dealing with the double impact of bushfires and COVID-19, with the workforce predicted to total 4,000 over the life of the project.”

News

Polo Flat segment factory for Snowy 2.0 brings local jobs and investment

06/04/2020

The NSW Government today approved the Polo Flat segment factory Environmental Impact Statement giving a green light for construction to start.

The factory in Cooma will produce 130,000 segments that make up the concrete rings that will line the 27km Snowy 2.0 tunnel.

“We fought hard to build the factory locally rather than importing segments from overseas or interstate because it means local jobs, opportunities and investment,” CEO Paul Broad said.

“During the five month construction period we will invest $55 million and create 30 jobs.

“When it is operational it will have an annual turnover of $115 million and create 125 operational jobs.

“We will also be working with Monaro High School to pilot school-based trade training.

“I want to thank the NSW Government who prioritised this announcement during what is an incredibly difficult period.”

Approximately 500 people are already working Snowy 2.0, and at its peak the workforce will be at around 2,000 people.

Thousand more jobs will be created indirectly through supply chains and support services.

“2020 has been an extraordinarily difficult year for Australia, particularly the local area. First we had the devastating bushfires and now COVID19,” Mr Broad said.

“At times like this we need to continue to drive jobs and investment. That is why we have been so determined to ensure Snowy 2.0 continues full steam ahead.

“Today’s announcement that we are starting construction on the Polo Flat segment factory is just another piece of the puzzle.

“The Snowy Mountains is an extraordinarily strong and resilient community. It will bounce back, and Snowy Hydro will be there every step of the way.”

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

Statement on some of the incorrect claims made about Snowy 2.0

16/10/2019

Snowy 2.0 is a project that is an investment for the next 100 years, that will keep Australia’s lights on, keep power prices down, and ensure Australia can make a secure transition to a clean energy future.

We note that the National Parks Association report is not an independent analysis, but just a set of random and unfounded assertions which ignore the true facts about this project.

Since construction began 70 years ago – which will be celebrated this Saturday – Snowy has provided the modern foundations of Australia’s economy, and the Snowy 2.0 project will be a bedrock for economic confidence in the future.

During that time we have been responsible environmental operators in Kosciuszko National Park and will continue to do so.

The facts are that only 0.01% of the national park will be permanently impacted by this project – or less than 1 square kilometre – of the park.

As our business and employees work and live in this area, we are committed to rehabilitating the areas affected by the Snowy 2.0 construction.

We also reject any claims that there have been cost over-runs on this project, or wild figures being promoted about the total cost of Snowy 2.0.

Our projected capital costs remain within the 2017 Feasibility Study cost of $3.8 billion to $4.5 billion and this was affirmed at the Final Investment Decision in December 2018 by Snowy Hydro’s Board, independent advisor Macquarie Capital, two government departments, Finance and Energy, and their independent advisor Lazard.

It is a falsehood to suggest transmission costs are an added cost to the Snowy 2.0 project as these are shared services used by the power industry, with the new upgraded capacity being essential in managing summer peak demand and transporting wind and solar to market.

We strongly reject any argument that Snowy 2.0 is not in the national interest. It has demonstrable economic and consumer benefits that have been independently valued at $4.4 to $6.8 billion.

News

Local and global experts to build Snowy 2.0

05/04/2019

Today Snowy Hydro Limited has achieved another significant milestone for Snowy 2.0 by appointing Future Generation Joint Venture as its main contractor. Snowy 2.0, a world-leading pumped-hydro expansion project, together with the mighty Snowy Scheme, will underpin Australia’s transition to a renewable energy future.

Future Generation is a joint venture between Clough, an Australian construction and engineering company, Salini Impregilo, a global hydropower and tunnelling specialist, and Lane.

The Engineer, Procure and Construct (EPC) contract signed today with Future Generation is consistent with the terms set out in the extensive, publicly-released Final Investment Decision information pack.

Under the single wrapped EPC contract, Future Generation will lead the civil works and Voith Hydro will deliver the latest hydro-generation technology in the new underground power station.

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.

News

Snowy Hydro welcomes planning approval for Snowy 2.0 Exploratory Works

11/02/2019

Snowy Hydro welcomes the New South Wales Government’s planning approval for Snowy 2.0 Exploratory Works today. The decision, which follows a rigorous environmental and planning assessment process, is another significant milestone in progressing the project.

Snowy Hydro hopes to commence work for Snowy 2.0 soon, subject to Shareholder approval from the Federal Government.

Snowy Hydro CEO Paul Broad said NSW Government’s support for Snowy 2.0 is critical for the security, affordability and reliability of the National Electricity Market (NEM) in the future.

“The mighty Snowy Scheme keeps the lights on across the National Electricity Market at times of peak demand today, and Snowy 2.0 will build on our existing capabilities.

“With more intermittent renewables coming online Snowy 2.0 will create an additional 2000 megawatts of on-demand energy generation and 175 hours of large-scale storage so households and businesses have energy when they need it most.

“Snowy 2.0 will deliver reliable energy at times of peak demand and can ‘fill the gaps’ by generating when wind and solar energy output is low.

“Snowy Hydro takes its environmental responsibilities very seriously. We have a long and proven record of responsibly operating the Snowy Scheme within the national park and we will do everything possible to avoid or minimise impacts from construction of Snowy 2.0.

“Snowy Hydro will provide $10.5 million to offset any impacts from the Exploratory Works,” he said.

The NSW Government, which is responsible for allocating the offsets, has made the commitment that Snowy 2.0 offsets will be used by National Parks and Wildlife Service to support local environmental and recreational initiatives in Kosciuszko National Park.

Exploratory Works involve excavating an exploratory tunnel to gain a greater understanding of the underground geological conditions at the proposed location of the new Snowy 2.0 power station. The works also include upgrades and establishment of access roads, establishment of a construction compound and supporting infrastructure, and other activities.

Almost 50 years ago, exploratory tunnels were constructed for both Tumut 1 and Tumut 2 power stations, the two underground stations in the Snowy Scheme.

Snowy 2.0 will create jobs and economic opportunities across the Snowy Mountains – already more than 50 local businesses have been involved in the project.

In March 2018, Snowy 2.0 was declared NSW Critical State Significant Infrastructure, which provided a clear and well established framework for the project’s planning and environmental approval requirements.

An Environmental Impact Statement for Snowy 2.0 Main Works will be submitted to the NSW Government later this year.

For more information about Snowy 2.0, please visit snowyhydro.com.au.

News

Snowy Hydro appoints preferred tenderers for Snowy 2.0

18/01/2019

Snowy Hydro has appointed Australian and global experts in construction, engineering and hydropower as preferred tenderers for the Snowy 2.0 project, following extensive competitive tender processes over the last 18 months.

The preferred tenderer for the civil works is Future Generation, a partnership between Australian construction and engineering company, Clough, and global hydropower and tunnelling specialists, Salini Impregilo.

World leader in hydropower engineering and equipment supply, Voith Hydro is the preferred electrical and mechanical tenderer and will deliver the latest hydro-generation technology in the new power station.

Australian company Leed Engineering has also been awarded the contract for exploratory works pre-construction activities.

Contracts are currently being finalised, with contract execution subject to Shareholder approval of the project.

This is another important step towards the commencement of the project. Snowy 2.0 is a world-leading pumped-hydro project that, with the existing Snowy Scheme, will underpin the stability of the energy market as more renewable energy enters the system.

News

Snowy 2.0 approved by the Board

12/12/2018

Today, the independent Board of Snowy Hydro Limited approved a final investment decision to proceed with Snowy 2.0, subject to Shareholder approval.

Snowy 2.0 is a pumped-hydro expansion of the existing Snowy Scheme, providing 2000 megawatts (MW) of on-demand generation and 350,000MW hours of large-scale energy storage.

After almost two years of rigorous due diligence on every aspect of the Project, including detailed financial analysis and ongoing geotechnical drilling, the Board is confident Snowy 2.0 is a strong investment for the Company.

The Board has informed the Shareholder of its decision to proceed with Snowy 2.0 subject to Shareholder approval. Further Project information will be released following Shareholder approval.

Find out more about Snowy 2.0 here.

News

Snowy 2.0 Exploratory Works EIS released

25/07/2018

An Environmental Impact Statement (EIS) for Snowy Hydro’s proposed Snowy 2.0 Exploratory Works has been released for a 28-day public exhibition period.

Snowy Hydro is seeking approval to proceed with a program of Exploratory Works to gain a greater understanding of the underground geological conditions at the likely location of the proposed Snowy 2.0 underground power station.

An EIS addressing the Exploratory Works’ environmental, social and economic impacts has been submitted to the NSW Government and will undergo comprehensive assessment as part of the planning and approvals process.

In preparing the EIS, Snowy Hydro engaged world-leading technical and scientific experts across a range of disciplines, including terrestrial and aquatic ecology and cultural heritage. The Exploratory Works have been designed in a careful and specific way to avoid and minimise environmental impacts.

The location of the works at the Lobs Hole Ravine region and the site access roads were redesigned and relocated to help avoid sensitive areas and species as they were identified during the EIS process.

The Exploratory Works, if approved, would provide further important information as part of the Snowy 2.0 project design process. While geological investigations have already been carried out from the surface, the rock has not been explored in-situ, at depth.

The proposed Exploratory Works will include horizontal core samples taken at depth almost one kilometre below the ground. The new geological data will ensure the precise location and design of the underground cavern can be confirmed.

This aspect of the project is one of the biggest challenges for Snowy 2.0 and gathering additional geological information as soon as possible is critical. Similar exploratory works were undertaken in the 1950s before the construction of the Snowy Scheme’s existing underground power stations of Tumut 1 and Tumut 2.

Snowy Hydro has a proud track record over many decades of responsible environmental management in Kosciuszko National Park. Any impacts from Snowy 2.0 will be carefully considered, and where impacts cannot be avoided, they will be offset.

Snowy Hydro is very supportive of stakeholder views that any offsets from Snowy 2.0 should be used for projects in the Snowy Mountains region.

To assist the community to access the EIS, Snowy Hydro has launched an interactive online EIS portal with information and videos about the project. It can be accessed here at https://v2.communityanalytics.com.au/snowy/eis

The Exploratory Works EIS is also available to download from the Department of Planning and Environment (DPE)

News

Snowy 2.0 Declared Critical State Significant Infrastructure

09/03/2018

Snowy Hydro welcomes the New South Wales Government’s decision to declare Snowy 2.0 as a Critical State Significant Infrastructure (CSSI) project.

The declaration signifies the critical role that the Snowy 2.0 project, together with the upgrades to the NSW transmission network, will play in providing reliable energy and large-scale storage to NSW as we transition to a low emissions economy.

Snowy 2.0’s generation and large-scale storage capabilities, along with the existing Snowy Scheme, will continue to underpin the stability and reliability of the NEM as more intermittent renewables enter the market.

The CSSI declaration is not final approval for the project. It is a framework that sets out the robust environmental assessment and approval process that is required for the Snowy 2.0 project.

Paul Broad, CEO of Snowy Hydro said that the CSSI declaration gives the company a very clear and transparent process to follow.

“Like any other project, we are preparing comprehensive Environmental Impact Statements which will include a range of scientific and technical studies to be carefully scrutinised by the NSW Government.

“We have the greatest respect for the Kosciuszko National Park. It’s our backyard and for almost 70 years we have been excellent responsible environment managers operating the existing Scheme across the region.

“The project’s design is being done in a way that minimises its environmental footprint. This includes putting the majority of the physical structures, such as tunnels and the powerstation deep underground”, Mr Broad said.

The EIS will detail the components of the project, the potential environmental, social and economic impacts of Snowy 2.0 and how to best manage them. As part of the EIS, we will undertake thorough community consultation so that the wider community can have input into the process. The EIS will also be published for public comment.

Under the CSSI process and in accordance with the NSW Environmental Planning and Assessment Act 1979, Snowy Hydro will submit an EIS for assessment by the Department of Planning and Environment, in consultation with other key agencies such as the National Parks and Wildlife Service and the Environment Protection Agency.

News

Independent expert report for Snowy 2.0 released

30/01/2018

As part of the feasibility study for the Snowy 2.0 project, an independent expert economic analysis of the changing energy market was commissioned and has now been released.

The report, conducted by Marsden Jacob Associates (MJA), considered the state of the market “with or without” Snowy 2.0. This information and analysis was critical for factoring in the market scenarios and public benefits of the project.

Key findings of the MJA report confirm that Snowy 2.0 would:

Lead to better price outcomes for retailers, customers and large energy users.

Help future proof the National Electricity Market at the least possible cost against the intermittency of wind and solar generation as they continue to grow their market share.

Build on the Snowy Scheme and see greater utilisation of existing dams and increase operating capability.

This expert report follows the release of the 700 page Snowy 2.0 feasibility study, which Snowy Hydro published last December.

Snowy Hydro would like to acknowledge the contribution of Australian Renewable Energy Agency to this report.

The report is available at: https://www.snowyhydro.com.au/snowy-20/