Snowy 2.0 – delivering next generation renewable energy

Snowy 2.0 is the largest committed renewable energy project in Australia. It will underpin the nation’s secure and stable transition to a low-carbon emissions future by providing on-demand energy and large-scale renewable energy storage.

The pumped-hydro project is a major expansion of the Snowy Mountains Hydro-electric Scheme, linking 2 existing reservoirs (Tantangara and Talbingo) with 27 km of tunnels and a new pumped-hydro power station to be located 800 metres underground.

Located in the heart of Kosciuszko National Park, water will be recycled between the upper reservoir (Tantangara) and lower reservoir (Talbingo) by the same turbines that can pump the water in the opposite direction.

This means the same water can be used to generate power more than once. It also means that flexible, on-demand power can be provided while reusing or recycling the water in a closed loop.

The first power is expected to be generated from Snowy 2.0 in 2027, with commercial operation expected to be achieved by 2028.
 

The Finance Snowy Hydro Shareholder team inspecting a tunnel for the Snowy 2.0 project.

Image: Finance

Working together

Finance supports the Australian Government's renewable energy commitments and targets by ensuring that government investments are effectively managed and delivered. This supports Australia's successful transition to renewable and green sources of electricity.

Finance oversees the Snowy 2.0 project in collaboration with colleagues at the Climate Change, Energy, the Environment and Water which leads the environment, water and energy policy aspects.

A fully Australian-owned company, Snowy Hydro Limited is incorporated under the Corporations Act 2001. It operates and maintains the Snowy Mountains Hydro-electric Scheme. Snowy Hydro started the Snowy 2.0 project in 2019.

Snowy Hydro manages 6,400 hectares of Kosciuszko National Park and around 24,000 hectares of freehold land. In addition to its energy operations, Snowy Hydro provides critical water services to capture, store and divert water for downstream users, including irrigators and towns in New South Wales and Victoria.

A project of this scale poses significant challenges and opportunities, requiring continued focus.

The project has a team of approximately 2,700 Australians dedicated to its safe and efficient delivery. The team made solid progress in 2023–24 towards the long-term goal of delivering a secure and stable transition to a low-carbon emissions future.

Benefits for the community

The low cost and zero emission advantages of renewable energy such as wind and solar can only be realised if a sufficient amount of energy from these intermittent sources can be stored for later use.

Snowy 2.0 will work alongside intermittent renewables and help fill the generation gaps in wind and solar. Its fast-start, clean hydropower and large-scale energy storage will mean energy is available when customers need it.

Snowy 2.0 is expected to increase the Snowy Scheme's generation capacity by approximately 50%. This will provide the National Electricity Market with an additional 2,000 megawatts of power and approximately 350,000 megawatt hours, or 175 hours of energy storage: enough capacity to power 500,000 homes simultaneously.

Snowy Hydro is committed to investing and supporting the local environment, community and infrastructure in which it operates. It is supporting local business, regional growth, tourism and the people of Cooma and surrounding areas through partnerships, sponsorships, community grants and other programs.

Find out more

Snowy Hydro (n.d.) Snowy Hydro – About, Snowy Hydro website, accessed 13 September 2024.