SENATOR THE HON SIMON BIRMINGHAM
MINISTER FOR FINANCE
MINISTER FOR TRADE, TOURISM AND INVESTMENT
LEADER OF THE GOVERNMENT IN THE SENATE
SENATOR FOR SOUTH AUSTRALIA
THE HON ANGUS TAYLOR MP
MINISTER FOR ENERGY AND EMISSIONS REDUCTION
Friday, 27 November 2020
SUPPORTING GRID INFRASTRUCTURE TO DELIVER BENEFITS OF SNOWY 2.0
The Morrison Government is delivering key infrastructure that will ensure the reliable and secure energy generated by Snowy 2.0 is available across the National Electricity Market (NEM), powering thousands of households and businesses for decades to come.
The Government will invest $125 million through the Clean Energy Finance Corporation to help finance the development of grid infrastructure critical to the delivery of Snowy 2.0.
TransGrid Services will use the CEFC finance to build and operate a new 330kV switching station and associated transmission lines as part of its agreement with Snowy Hydro Limited to provide connection services for 30 years.
Energy and Emissions Reduction Minister Angus Taylor said the project will ensure the benefits of Snowy 2.0 are felt across the entire NEM.
“Snowy 2.0 is Australia’s largest renewable energy project and will deliver reliable and secure energy to thousands of Australian households and businesses,” Minister Taylor said.
“It’s all part of our strong action to stabilise the grid and get the energy generation balance right to deliver affordable, 24/7 reliable power.
“This is a yet another initiative by our Government to bring power prices down and keep the lights on for Australians.
“Importantly, as we recover from the COVID-19 recession, Snowy 2.0 will stimulate the economy and create jobs.”
Finance Minister Simon Birmingham said the CEFC was established to facilitate increased investment into the clean energy sector and has delivered significant projects.
“Infrastructure projects like Snowy 2.0 will play a key role in Australia’s economic recovery by creating jobs and boosting economic activity,” Minister Birmingham said.
“More than 500 people and 100 local businesses have already been engaged on this project and we expect 5,000 direct and indirect jobs to be created over the life of the project, with the potential for many more jobs to be created locally and in the broader region through supply chains and support services.”
CEFC CEO Ian Learmonth said: “Investment in new storage, transmission and related infrastructure is essential to support the security and reliability of the grid during Australia’s clean energy transition. Our ability to offer investment certainty in challenging market conditions is evidence of the critical role the CEFC can play in supporting grid related developments. We are delighted to be working with TransGrid Services in investing in this exciting project.”
Today’s announcement marks the first major grid infrastructure investment by the CEFC, which is in line with the Government’s actions to secure the grid and put downward pressure on prices.
The Grid Reliability Fund, once established, will be administered by the CEFC and will support investment in new energy generation, storage and transmission infrastructure such as this.
Snowy 2.0 is a key part of the Morrison Government’s plan to make renewables more reliable, reduce volatility, bring down power prices for Australian families and businesses, and provide other services critical to the security and stability of the NEM.
Snowy 2.0 will provide an additional 2,000 megawatts of fast-start, dispatchable energy and provide 350,000 megawatt hours of large-scale storage, enough to power the equivalent of 500,000 homes for over a week during peak demand.
Snowy Hydro Limited expects first power from Snowy 2.0 in 2025.