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Scott Morrison Prime Minister, Member for Cook
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Angus Taylor Minister for Energy, Member for Hume
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Mathias Cormann Minister for Finance and the Public Service, Senator for Western Australia
The Government has approved Snowy 2.0 as
part of its plan to support new renewable energy for Australia’s future energy
mix to deliver affordable, reliable power.
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.
The Government is 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 Government’s decision green lights the project to progress to the
early works stage.
This decision builds on the our investment
in Snowy Hydro following the acquisition from the New South Wales and Victorian
governments on 29 June 2018 and our work to back 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.
More information about Snowy 2.0 is online
at
https://www.snowyhydro.com.au/our-scheme/snowy20/
