A consortium led by Italian engineering and construction company Salini Impregilo has won a AUD5.1bn (US$3.6bn) contract for the civil works and electromechanical component of the Snowy 2.0 expansion project, which will consist of a 2,000 MW pumped-storage hydropower plant at the existing 4,100 MW Snowy Scheme in New South Wales (south-east Australia). Salini Impregilo will link the existing Tantangara and Talbingo dams by excavating tunnels and building a pumped-storage hydropower plant. The Italian company has a 65% share in the consortium (AUD3.3bn, i.e. US$2.35bn), in partnership with Australian construction firm Clough (35%). The first power produced from Snowy 2.0 is expected in late 2024.
The Snowy scheme (also known as Snowy Mountains scheme) is a hydropower complex consisting of nine power stations with a combined capacity of nearly 4.1 GW. 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. In February 2019, the Australian government cleared the early work phase of the Snowy 2.0 hydropower expansion project and committed to investing up to AUD1.38bn (US$989m) to support the project. The announcement came as part of the government's pre-election climate change policy, according to which the government pledged AUD2bn (US$1.43bn) for projects to reduce domestic greenhouse gas (GHG) emissions.