Snowy 2.0 receives Federal approval and almost $1.4bn in funding

The Federal Government has given its approval to the development of the multi-billion dollar Snowy Hydro expansion - also known as Snowy 2.0 - and current Prime Minister Scott Morrison announced that almost $1.4 billion in equity is going to be invested towards the project.

“This will be one of the largest pumped hydro projects in the world.

“This is groundbreaking in every sense and it’s something that I think all Australians can have a great sense of excitement and pride about. This is what vision looks like,” the Prime Minister said.

Earlier this month, the New South Wales Government has also given planning approval for the Snowy 2.0 Exploratory Works, following a thorough planning and environmental assessment process.

Exploratory Works are set to commence immediately and it will involve digging an exploratory tunnel that will help provide a better understanding of underground geological conditions at the location of the future Snowy 2.0 power station. The works also involve upgrading and building access roads, a construction compound and supporting infrastructure as well as other works associated with the project.

Snowy Hydro CEO Paul broad said: “Snowy Hydro will provide $10.5 million to offset any impacts from the Exploratory Works.”

Source: Snowy Hydro

Snowy 2.0 will be connecting the two existing Snowy Scheme dams - Tantangara and Talbingo - with underground tunnels. The project will also include the construction of an underground power station that has the capability to pump.

Once Snowy 2.0 is operational, it will be able to provide up to 2,000MW of on-demand power with approximately 175 hours of storage to the National Electricity Market (NEM).

“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,” Mr Broad said.

In January 2019, Snowy Hydro made the announcement that it has appointed a number contractors to deliver works on the project.

Snowy 2.0 is expected to be valued between $3.4 billion and $4.5 billion and it is anticipated to create up to 5,000 during construction.

First power generation at Snowy 2.0 is projected to be made by late 2024.

What do you think of this new update for Snowy 2.0? Let us know your thoughts in the comments section below.

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Source: Snowy Hydro (1, 2); The Urban Developer; ABC News; 9 News; The Guardian; News.com.au