News

SNOWY HYDRO RELEASES 2024 SUSTAINABILITY REPORT

13/01/2025

Snowy Hydro has released its 2024 Sustainability Report, covering the progress the energy generator and retailer has made in areas such as environmental stewardship, social impact, and understanding and responding to its carbon emissions and climate risks.

Snowy Hydro CEO Dennis Barnes said the report reflects the company’s role in enabling Australia’s transition to renewable energy, while highlighting its progress and ambitions.

“At Snowy Hydro, we understand that sustainability goes beyond fulfilling our environmental commitments,” Mr Barnes said.

“It’s about supporting our people, driving better diversity outcomes and making a positive difference to the communities we serve.

“The 2024 report shows the progress we are making and achievements we are proud of. While we recognise there is still more to do, this report serves as our roadmap, keeping us accountable and focused on delivering even better outcomes for stakeholders and the community in the future,” Mr Barnes said.

Mr Barnes also acknowledged Snowy Hydro’s responsibility as custodian of the water that flows through the Snowy Scheme, highlighting its role in balancing electricity network reliability, with the irrigation needs of farmers and other water users.

Key sustainability achievements in the 2023/2024 financial year include:

Producing 3,937 GWh of renewable electricity from our hydro generation assets – enough energy to power around 600,000 homes for a year.
Growing our mass market retail brands business to 1.4 million customers, with a focus on delivering authentic, personal customer service.
Our retail brand Red Energy recognised with the Customer Satisfaction Award for the 14th year in a row
7,958 students benefitting from Snowy STEM Academy programs
Keeping our people safe, reflected in our low Total Recordable Incident Frequency Rate (TRIFR) score
Delivering five events of 8-hour peak water flows from Jindabyne reservoir to improve the health of the Snowy River ecosystem
Maintaining outstanding reliability across our generation assets, with our hydro generators starting successfully 99.7 per cent of the time, and gas 98.5 per cent of the time, underpinning our ability to contribute to stable electricity supply
$557,000 spent through our community giving programs
Increasing the proportion of women in senior leadership roles
$320,000 of funding for Murray River rehabilitation work to maintain waterflow and prevent erosion

Snowy Hydro is the third largest generator of electricity in Australia by capacity. We can generate 5,500 megawatts (MW) of electricity across eight hydroelectric power stations, three natural gas power stations, and four diesel power stations.

Snowy 2.0 and the Hunter Power Project are set to deliver 2,860MW of additional capacity. This significant boost to the network’s capacity will make a meaningful difference to energy supply reliability, particularly on hot days in summer.

When these fast-start generating assets come online, they will enable further wind and solar generation that can displace more than 33 million tonnes of CO₂-e per annum.

This carbon emissions displacement would represent a 28 percent reduction in the National Electricity Market emissions from 2022 levels, and approximately 13 percent of Australia’s 2030 total emissions reduction target.

To learn more about Snowy Hydro’s sustainability journey and access the 2024 report, visit https://www.snowyhydro.com.au/wp-content/uploads/2025/01/Snowy-Hydro_2024-Sustainability-Report.pdf.

News

HUNTER POWER PROJECT UPDATE

16/12/2024

Testing and commissioning of Snowy Hydro’s fourth fast-start, on demand gas power station has now begun.

This first phase of commissioning involves pressure testing the Hunter Power Project’s (HPP) approximately 23 kilometre network of pipe infrastructure that will deliver gas, diesel and water to the station’s generators.

Using the latest technology the world’s best manufacturers can offer, HPP will be powered by two of the most gas-efficient turbines available and will be capable of delivering 660 megawatts of electricity to the grid. This significant amount of power will make a meaningful difference to supply reliability, helping the network cope during hot weather and outages of transmission lines and other power stations.

As more wind and solar enters the electricity grid, HPP will play a critical role by providing back-up power to homes and businesses.This means that while HPP is only expected to run around 5 percent of the time, it will enable around 2 gigawatts of renewable energy to be added to the grid, which is the equivalent of displacing around 5 million tonnes of CO2-e every year¹.

PHASED COMMISSIONING

Alongside the pipe pressure tests, HPP’s switching station, which was built by Snowy Hydro as part of the project but handed over to Ausgrid to operate, will be connected to provide the power station with energy from the grid. Testing will then progress to commissioning the first of HPP’s two turbines and generators.

Pending a smooth process, the first turbine and generator is expected to reach full commercial operation by the end of April 2025. Commissioning of the second turbine and generator will follow, with commercial operation of both turbines and generators expected by the end of June 2025.

Depending on commissioning outcomes, there is a possibility of either turbine being available to provide some power to the grid sooner. These target dates are dependent on the commissioning program not being impacted by weather or other factors.

VALUE AND COST

HPP has experienced extended periods of extreme weather and other factors that have stopped work on the project, impacting its timeline. As flagged in the August 2024 project update, HPP’s cost has been impacted in order to minimise the delay in its completion, so HPP can produce power for the network as soon as possible.

Prioritising power availability means the final cost of HPP is expected to be around $1.3 billion, dependent on a smooth transition to commercial operation without delays from weather or other factors.

Despite the change in cost, the strength of HPP’s economic benefit has increased. HPP’s net present value (NPV), has increased to $914 million from $531 million at the March 2021 final investment decision².

This increase in HPP’s economic value has been largely driven by:

more wind and solar generation in the grid increasing the need for HPP to provide on-demand, back-up energy to boost electricity reliability;
a substantial increase in HPP’s gas storage capacity to 70TJ from 43TJ;
HPP’s contribution to managing transmission risk between Sydney and the Snowy Hydroelectric Scheme in the Snowy Mountains, by providing an alternative electricity source for Australia’s largest economy in the event of transmission outages.

LOCAL BENEFITS

The project is delivering substantial jobs and investment benefits to the Hunter region:

To promote interest in STEM career paths and education, HPP’s team has engaged with local students through career expos and presentations, including through partnerships with the Clontarf Foundation in Kurri Kurri, Youth Express and Training Services NSW.

$751 million spent domestically, with $619 million spent in the local Hunter region.

57% of HPP’s workforce are local residents.

20 apprentices are engaged on the project, providing skill development in the Hunter region.

Over $175,000 has been awarded to 39 local projects through the HPP Community Grants Program.

Over $26,000 has been granted to Cessnock LGA schools through the Snowy Hydro Local Schools STEM Fund in 2024.

¹Assumes every 1 MW of dispatchable capacity from HPP enables 3 MW of variable renewable capacity and displaces thermal generation with a carbon intensity of 0.94 t/CO2-e/MWh. Scope 1 emissions from HPP are estimated to be approximately 0.14 million tonnes of CO2-e per annum based on a carbon intensity of 0.52 t/CO2-e/MWh.

²NPVs discounted to March 2021.

News

STATEMENT: HUNTER POWER PROJECT UPDATE

27/08/2024

Development of Snowy Hydro’s fourth fast-start, on-demand gas power station, the Hunter Power Project (HPP), is entering its final phase.

Snowy Hydro’s investment in the HPP will play an important role as coal plants close. With 660MW of available dispatchable capacity, supported by 34 hours of onsite fuel storage from 70 terajoules (TJ) of gas and 3.6 million litres of diesel, HPP will be capable of enabling approximately 2 gigawatts (GW) of new renewable capacity*.

Gas-powered electricity generation will remain critical to enabling Australia’s renewable energy transition and meeting peak demand in what is a highly seasonal market. As more renewables come online, the fast-deployment capability of gas will be essential to ensuring power is still available to homes and businesses when wind and sunlight is not.

Since the reset of HPP in August 2023, there has been significant construction progress, with completion of all major civil works onsite and installation and alignment of critical turbine and generator parts.

Power Islands

The Power Islands house the gas turbines and generators that produce electricity. Connecting the major electrical components is expected to be finalised by September 2024.

Balance of Plant

Balance of Plant are the systems that provide essential support systems to the Power Islands, such as diesel, water, fire systems, and air. Key milestones include the completion of four large tanks and the start of diesel system testing.

Kurri North Switching Station (KNSS)

Built by Snowy Hydro, the KNSS will be owned and managed by Ausgrid and will supply electricity generated by HPP to the NSW grid when needed. The station’s main electrical components are now installed, with handover to Ausgrid imminent.
Since June 2024 an additional 12 apprenticeship positions have been established in trades such as electrical, mechanical and boilermaker. With a peak workforce of approximately 600 (including 60% from the local area), HPP continues to contribute to skills development and job readiness in the Hunter region.

Extended periods of inclement weather over the past year have impacted the project’s schedule. In order for HPP to be producing some power for the electricity network as soon as possible, we have prioritised schedule, which will impact the final cost.

HPP is due to come online in December 2024, with the start of its testing and commissioning phase of one of its two generators on diesel fuel. When operating on diesel each unit is capable of generating 283MW. This is the quickest path to ensuring HPP is available to provide power to the electricity network, which will occur as soon as possible after testing is complete. We will sequence the commissioning of the second unit and the introduction of gas. We expect HPP to be fully operational, with both generators able to operate on both fuels, in the few months following the start of testing.

The exact timing of each of the phases during this period will depend on how commissioning of each stage goes.

When HPP is in full operation it will operate on gas for the vast majority of the time, with diesel only used as a back-up fuel.

[Ends]

*Snowy Hydro, Sustainability Report 2023 (page 19)

News

TBM FLORENCE UPDATE

16/05/2024

Tunnel boring machine Florence has been ramping up excavating the Snowy 2.0 headrace tunnel, recently reaching 12 metres per day for a period.

With progress slowing in very hard rock on Wednesday 15 May, today (16 May) the Snowy 2.0 project team ceased excavation by the TBM due to rock pinching on the machine’s shield.

We are currently investigating the best way to relieve this pressure prior to recommencing excavation.

News

STUDENTS BENEFIT FROM SNOWY HYDRO LOCAL SCHOOL STEM FUND

26/06/2023

Hundreds of students across 18 Snowy Mountains schools will benefit from Snowy Hydro’s inaugural Local School STEM Fund program. The 2023 funding has been allocated to both primary and secondary from public and private schools to provide students with hands-on interactive experiences, challenging their creativity and critical thinking.

Through the program, Snowy Hydro has supported a varied range of science, technology, engineering and maths (STEM) initiatives, including an aquaponics project, 3D printers, a First Nations Science Camp, upgrades to equipment in science classrooms, development of a robotics club, enhancement of resources, the establishment and expansion of school programs and clubs, and the launch of various projects such as a sustainable garden and a township design.

Snowy Hydro CEO Dennis Barnes said the collaboration with local schools will encourage and promote problem-solving skills for students, both in and out of the classroom and assist their 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,” Dennis said.

The real-world application of STEM allows students to interact with the subject material and develop a diverse range of skill sets. By seeing the outcomes of STEM throughout their lives and assessing the outcomes for themselves, their schools, community and surrounding environments, a unique and engaging learning space is created.

Dennis said he was proud to announce the Local School STEM fund was “supporting schools in 10 locations, providing approximately $160,000 of funding to contribute to the growth of local students.”

The outcomes of the funded initiatives will assist students with the understanding of sustainability, combine ancient knowledge and modern technology, build on existing STEM skills, develop critical thinking, strengthen student confidence and promote the balance of research and design.

To further engagement and involvement with education, Snowy Hydro is committed to continuing this beneficial program. The next round of applications will open in February 2024.

For more information about Snowy Hydro’s Local School STEM Fund visit:

https://www.snowyhydro.com.au/local-school-stem-fund-2/

News

SNOWY 2.0 RENEWABLE ENERGY PROJECT – FIND OUT MORE!

06/02/2023

Snowy 2.0, a huge pumped-hydro expansion of the mighty Snowy Scheme, is at the heart of Australia’s transition to a renewable energy future and this is your chance to find out more about the project at local information sessions.

Snowy Hydro will host the Snowy 2.0 community information sessions starting from Thursday 9 February, providing locals with opportunities to be updated, ask questions and provide feedback.

Hear from the Snowy 2.0 project team about:

Current project activities and news;
Traffic management and road safety initiatives;
Accommodation, recreation access and other local issues;
Jobs and training on Snowy 2.0.

New Snowy Hydro CEO Dennis Barnes said construction of Snowy 2.0 was providing significant economic and social benefits right across the region.

“There are 2,200 people employed on the project and hundreds of millions of dollars are being invested locally, so it continues to be a very exciting time for communities throughout the Snowy Mountains,” Mr Barnes said. “I encourage everyone to come along to one of our sessions to hear the latest about Snowy 2.0, discuss any local concerns that you may have and answer your questions.”

Hosted by Snowy Hydro, the sessions will be attended by representatives from Future Generation Joint Venture, our Snowy 2.0 contractor building Snowy 2.0.

Talbingo and Tumbarumba will be drop-in sessions, with the chance to speak one-on-one with project team members, while there will be a formal presentation followed by community Q&As in Tumut, Cooma and Adaminaby.

Community information sessions schedule:

Thursday 9 February Talbingo shops 11.00am-2.00pm
Thursday 9 February Club Tumut 6.00pm-7.30pm
Friday 10 February Near Tumbarumba IGA, The Parade 11.00am-2.00pm
Tuesday 28 February Cooma Ex-Services Club 6.00pm-7.30pm
Wednesday 1 March Adaminaby Bowling Club 6.00pm-7.30pm

News

Snowy Hydro and SMEC reunite for Snowy 2.0

11/05/2017

Snowy Hydro Limited and the Snowy Mountains Engineering Corporation Australia (SMEC) will join forces once again, this time to carry out the feasibility study into the potential expansion of the Snowy Scheme’s pumped hydro storage capability.

Snowy Hydro and SMEC have a long association and worked together from the earliest days to develop the iconic 4,100 megawatt (MW) Snowy Mountains Hydro-Electric Scheme under the auspices of the Snowy Mountains Hydro-Electric Authority, established in 1949.

Selected through a tender competitive process which attracted interest from a field of world-class engineering firms, SMEC has now been appointed as the lead consultant engineer for the feasibility study into the first major expansion of the Scheme since construction days.

Snowy Hydro CEO Paul Broad said “SMEC was the obvious choice to partner with us on the study, given we share the same DNA. It really is a case of getting the band back together. The task now will be to bring together our best and brightest to revisit some of the visionary proposals developed over many years by the talented men and women who built the Scheme.”

The feasibility study will first review existing proposals to expand pumped hydro storage on the Snowy Scheme, many of which have existed since the 1960s. Under the most prospective proposal, up to 2,000 MW of hydro-electric energy could be added to the grid to act as rapid response back-up during periods of high demand and fill the gaps in energy supply caused by the growth in intermittent renewables and the exit of thermal baseload power.

The pumped hydro capability means the water utilised for electricity generation can be recycled to provide supply when it’s needed most, with no impact on the Scheme’s ability to continue to supply valuable water to irrigators in the food bowl of south-eastern Australia.

“This project has the potential to deliver one of the largest pumped hydro schemes in the world and underscores the importance of the Scheme’s existing role as the battery of the National Electricity Market.”

“While it has long been an Australian engineering icon, the importance of the Snowy Scheme’s role as the battery storage of the NEM will only become more critical as we move to a low carbon economy. The reliable, fast-start Scheme can help to responsibly manage the exit of baseload thermal power and the rise of intermittent renewables.

“As we move through the feasibility study phase, we will gain greater clarity around the technical and engineering requirements for the expansion as well as costs and timeframes for its construction”, Mr Broad said.

SMEC CEO Andy Goodwin said “Snowy Mountains are part of our namesake and the backbone of our heritage, so the chance to be involved in this project again is a unique ‘twice-in-a-lifetime’ opportunity, both for our organisation and those engineers who worked on the original scheme.

The Snowy 2.0 project will provide us with new design challenges from its predecessor and we’ve created a team of our most experienced specialists to deliver the feasibility stage.

We’re honoured to be part of the project and looking forward to resuming our presence within the Cooma community again.”

SMEC’s appointment will deliver significant benefits to the local Snowy Mountains community. As part of its commitment to this project, SMEC will reopen its previous offices in Cooma, which will see more than 30 staff permanently based in the town.