Snowy Hydro 2.0, the largest renewable energy project under construction in Australia, is back in the limelight as the NSW government prepares to issue final environmental approvals to resume drilling.
The pumped-hydro battery megaproject involves linking two existing dams, Tantangara and Talbingo, through 27 kilometres of tunnels and building a new underground power station.
Water will be pumped to the upper dam when there is surplus renewable energy production and the demand for energy is low, and then released back to the lower dam to generate energy when electricity demand is high.
It will provide flexible, on-demand power while reusing or ‘recycling’ the water in a closed loop and maximise the efficiency of renewables by using excess solar and wind energy to pump water to the higher dam, to be stored for later use.
The plan to resume drilling comes as a significant boost to the project, which is crucial for Australia's shift away from coal power. The federal government-owned initiative has faced challenges, including cost overruns and delays, most notably with its tunnel boring machine, Florence, getting stuck underground.
The restart of Florence, one of the project's three complex boring machines, is expected to alleviate concerns about further delays. Initially set to be operational by 2024, the project's timeline has been pushed to 2027.
The Albanese government is hopeful of avoiding new technical problems and meeting the revised 2027 deadline.
Crucial for Australia's energy security
Australia's energy landscape is undergoing a significant transformation, with an ambitious target of over 80% renewable energy generation by the decade's end.
This shift is exerting pressure on coal power stations, which currently dominate Australia's electricity supply.
Snowy Hydro 2.0, upon completion, will significantly contribute to the grid, potentially providing enough electricity to run large swathes of the grid on its own for about a week.
With the retirement of major coal power stations like Eraring and Yallourn by 2027, Snowy Hydro's timely completion becomes increasingly crucial for Australia's energy security.
Without pumped hydro or batteries, Australia’s National Electricity Market – which excludes Western Australia and the Northern Territory – will be prone to shortfalls in electricity generation when the sun is not shining or the wind is not blowing, increasing power bills.
The importance of this project is magnified as alternative pumped hydro projects are scarce, and few match Snowy Hydro's scale.
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