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.