The multi-billion dollar Snowy Hydro expansion – also known as Snowy 2.0 – has been given the construction go-ahead. The plans for this massive project was first announced earlier in 2017.
The project is now estimated to cost $3.4 billion and is expected to create up to 5,000 jobs during its construction phase.
A feasibility study done on the project – which was released earlier this week – found that Snowy 2.0 is achievable despite “geological challenges”.
According to Prime Minister Malcolm Turnbull, Snowy 2.0 will help “future-proof the National Electricity Market” which will lower power prices and provide more secure supply.
In order to develop a construction plan for the project, test-drilling was done 1-kilometre underground at a dozen locations.
Snowy 2.0 is going to be financed by Snowy Hydro’s retained earnings and borrowings.
Snowy Hydro is owned by New South Wales (58 per cent), Victoria (29 per cent) and the Commonwealth (13 per cent). The Victorian Government, however, is open to sell its stake.
A Government spokesman said: “While the Victorian Government remains open to the idea of divesting its share of Snowy and will negotiate with the Commonwealth in good faith, the Victorian Government – not Canberra – will decide what projects any proceeds are spent on.”
They added: “We’ll also ensure that Victorian’s will get fair and appropriate value and that our water and electricity transmission arrangements are adequately provided for.”
Since its completion in 1974, this project is the biggest Snowy Mountains Scheme expansion to be done.
Construction on Snowy 2.0 is expected to commence by late-2018 and is projected to be up and running by 2024.
What do you think of this news? Let us know your thoughts below in the comment section.
Don’t forget to subscribe to Felix Project News today for more Snowy 2.0 as well as other industry news and project updates.
As Felix's Marketing Assistant since 2015, Monica is responsible for researching and sharing new and progressing projects within the construction and mining sectors in Australia. It's no surprise that Monica has her finger on the pulse of Australian major projects given she has produced more than 1,000 posts. She truly is an industry expert.
Major $5.1bn contract for Snowy 2.0 awarded to Future Generation JV
A major $5.1 billion contract for the delivery of the multi-billion dollar Snowy Hydro expansion - also known as Snowy 2.0 - has been awarded by Snowy Hydro Limited to Future Generation, a joint venture between Clough and Salini Impreglio.
Snowy 2.0 receives Federal approval and almost $1.4bn in funding
The Federal Government has given its approval to the development of the multi-billion dollar Snowy Hydro expansion - also known as Snowy 2.0 - and current Prime Minister Scott Morrison announced that almost $1.4 billion in equity is going to be invested towards the project.
Contractors appointed to deliver works on Snowy 2.0
The multi-billion dollar Snowy Hydro expansion - more commonly known as Snowy 2.0 - is moving forward with a number of contractors appointed to deliver various works on the project following an 18-month competitive tender process.