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.
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Source: Construction Advisor