The Australian Government has approved Snowy 2.0 as part of its plan to support new renewable energy. Exploratory Works for the $4.5bn+ mega-project will start immediately.
Snowy 2.0 has been designed to increase generation capacity by 2,000 megawatts, and requires the construction of an 800m deep, 26km long tunnel linking the Tantangara Reservoir to Talbingo Reservoir, and an underground powerhouse.
The announcement follows last month’s news that Snowy Hydro has appointed Future Generation, a JV between Australian company, Clough, and Salini Impregilo, as preferred tenderer for its civil works contract.
Following Snowy Hydro Board’s final investment approval 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 $1.38bn in an equity investment for Snowy 2.0, with the remainder of the project to be financed by Snowy Hydro Limited.
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.
The project has a total expected six-year construction period, concluding in 2024.