Snowy 2.0 is an expansion of the existing Snowy Hydro Scheme. The Project will add 2.2 gigawatts (GW) of dispatchable capacity to Snowy Hydro’s portfolio (originally proposed at two GW).
The pumped hydro-electric scheme elements of Snowy 2.0 Main Works are mostly underground between the southern ends of Talbingo and Tantangara reservoirs, a straight-line distance of 27 kilometres, otherwise known as the Yarrangobilly Pumped Storage Scheme.
The project originally had an expected six-year construction period. The current expected construction period is eight years.
Key Dates
| Apr 2019 | Contract Award |
| Aug 2020 | Construction Commencement |
| Dec 2029 | Expected Construction Completion |
Funding contributions
| User charges |
Financing
| Equity Finance: | Federal Government |
| Debt Finance: | Federal Government |
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In the 2024-25 Budget the Federal Government allocated $7.1 billion in financing. This comprises of $4.5 billion in concessional loans over four years and $2.6 billion in equity investment over two years. Prior to this, the 2019-20 Federal Budget had commited $1.38 billion in equity investment. |
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Procurement
| Procuring Agency: | Snowy 2.0 |
| Successful Tenderer: | Main Works: Future Generation joint venture between Webuild and Clough |
| Related contracts: |
PROJECT HISTORY
| Mar 2017 | Proposal to expand the Snowy Scheme is announced. |
| May 2017 | SMEC appointed to carry out feasibility study into expansion of Snowy Scheme. |
| Dec 2017 | Snowy Hydro’s independent Board of Directors has approved the Snowy 2.0 feasibility study. |
| Mar 2018 | NSW Government declared Snowy 2.0 as State Significant Infrastructure (SSI). |
| Mar 2018 | The Federal Government announced it would take on full ownership of NSW and VIC state government shares in the project. Snowy Hydro Limited was previously 58 per cent owned by NSW, 29 per cent by Victoria and 13 per cent by the Federal Government. The agreed fair market value of the enterprise is $7.8 billion, which saw NSW receive $4.154 billion and Victoria $2.077 billion. |
| Jul 2018 | Environmental Impact Statement (EIS) for Snowy Hydro’s proposed Snowy 2.0 Exploratory Works released for a 28-day public exhibition period. |
| Dec 2018 | The independent Board of Snowy Hydro Limited approved a final investment decision to proceed with Snowy 2.0, subject to Shareholder approval. |
| Jan 2019 | Snowy Hydro announced the Future Generation consortium comprising Salini Impregilo and Clough as preferred bidders for the civil works package for the project. Voith Hydro was announced as the preferred bidder for the electrical and mechanical works package. Leed Engineering was the awarded the pre-construction works contract for the project. |
| Feb 2019 | NSW Government gave planning approval for Snowy 2.0 Exploratory Works. This includes 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. |
| Feb 2019 | Federal Government gave shareholder approval for the project to proceed, alongside an equity contribution of 'up to' $1.38 billion, with the balance to be financed by Snowy Hydro Limited. |
| 2019 | Early works commenced. |
| Apr 2019 | In the Budget, the Federal Government committed $1.38 billion in equity financing to the project. |
| Apr 2019 | Webuild (formerly Salini Impregilo), Clough and Lane were awarded the $5.1 billion contract for the civil works and electromechanical component of the Snowy 2.0 project (this accounts for future escalation of prices over the eight years of the project). Under the terms of the contract, Salini Impregilo will link the existing Tantangara and Talbingo dams by excavating a series of tunnels and building a hydroelectric power station with pumping facilities located nearly one kilometre underground. |
| Sep 2019 | The Environmental Impact Statement (EIS) for the main works was released for public consultation, closing on the 6th of November. |
| Jun 2020 | Approval was granted for the Main Works contract of the project. |
| Nov 2022 | Snowy Hydro CEO interim confirms in Senate Estimates a cost increase to $5.9 billion. |
| Aug 2023 | Cost increase to $12 billion and main contract reset. |
| May 2024 | The Australian Energy Market Operator's May Update to the 2023 Electricity Statement of Operations announced the project's expected commissioning date was delayed from December 2028 to December 2029. |
| May 2024 | The 2024-25 Federal Budget provided $7.1 billion in financing over four years to the project, including $4.5 billion through a concessional loan and $2.6 billion in equity over the next two years. The Government provided no further details whether the additional equity financing would be directed to a change of scope or cost overruns. |
Estimated Total Cost
(2023)
Sector
Energy
Procurement approach
Traditional Procurement |
Location
New South Wales |
Resources
