Snowy 2.0




PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
Snowy 2.0
STATUS

Prospective pipeline

Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.

Credibly proposed

The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.   

Announced

The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.

Under procurement

The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).

Preferred bidder announced

A preferred bidder has been selected and is in exclusive negotiations.

Recently closed

Projects that have progressed to contractual close remain on ANZIP for 12 months.

ANZIP is focused only on major infrastructure activity, above the following thresholds:

Australia

Construction projects: > AUD$300m

Investable greenfield & brownfield: > AUD$100m

New Zealand

All greenfield and brownfield projects and divestments: > NZD $100 million


STATUS: Prospective pipeline
VALUE: $4.15bn AUD
SECTOR: Energy
JURISDICTION: NSW
PROCUREMENT APPROACH: Traditional procurement
TYPE: Greenfield

The 'Snowy 2.0' project is a proposed expansion of the existing Government-owned Snowy Hydro Scheme. The Federal Government first announced the expansion project in March 2017 and a feasibility study was commissioned.

The $29 million feasibility study, which was largely completed by the engineering firm SMEC, has recently been approved by Snowy Hydro's Board of Directors.

The preliminary cost estimate of the expansion project is $3.8 - $4.5 billion of taxpayer funded 'equity', with up to an additional $2 billion required to upgrade the transmission lines from the Snowy Mountains to Sydney and Melbourne, which will likely be funded from electricity network charges.

Snowy Hydro Limited is currently 58 per cent owned by NSW, 29 per cent by Victoria and 13 per cent by the Federal Government. A Federal Government buyout of the company was proposed in mid 2017, with negotiations, including a final valuation, still underway.

Snowy 2.0 is expected to increase generation capacity by 2,000 megawatts. It will require the construction of a 26 kilometre tunnel that links the Tantangara Reservoir to Talbingo Reservoir, to be built up to 800 metres underground.

The project has an expected six year construction period, which would conclude in 2024.

Further work will be undertaken by Snowy Hydro to determine a final investment decision in 2018.



Last reviewed: 12/02/2018

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