The Australian government has cleared the early work phase of the Snowy 2.0 hydropower expansion project and has committed to investing up to AUD1.38bn (US$989m) to support the project. The remainder will be funded by the project operator and owner Snowy Hydro, which is set to begin early works shortly. This announcement comes as part of the government's pre-election climate change policy, according to which the government pledged AUD2bn (US$1.43bn) for projects to bring down domestic greenhouse gas (GHG) emissions.
The Snowy 2.0 expansion project scheme is expected to be built at a total cost of AUD4.5bn (US$3.2bn) and will include a 2,000 MW pumped-storage expansion at the existing Snowy Scheme in New South Wales (south-east Australia), which consists of nine power plants with a combined capacity of nearly 4.1 GW. First power generation is expected in late 2024. Upon completion, it will connect the Talbingo and Tantangara reservoirs in the Kosciuszko National Park. Approved by the company in December 2018, the expansion will prop up Australia’s power supply as ageing coal-fired plants are being shut down.