 | |
| Formerly | Snowy Mountains Hydro-electric Authority |
|---|---|
| Company type | Corporation |
| Industry | Energy |
| Founded | 1949; 76 years ago (1949) |
| Founder | Government of Australia Government of New South Wales Government of Victoria |
| Headquarters | , |
Area served | New South Wales Victoria Queensland South Australia Australian Capital Territory |
Key people | David Knox (Chairman) Dennis Barnes (CEO) |
| Products | Electricity generation |
| Services | Electricity retailing, bulkwater management |
| Revenue | $3.5 billion (2021/22) |
| $295 million (2021/22) | |
Number of employees | 1,726 (2022) |
| Parent | Government of Australia |
| Subsidiaries | Red Energy Valley Power Peaking Facility |
| Website | www.snowyhydro.com.au |
Snowy Hydro Limited is an electricity generation and retailing company in Australia that owns, manages, and maintains theSnowy Mountains Hydro-electric Scheme that consists of nine hydro-electric power stations and sixteen large dams connected by 145 kilometres (90 mi) of tunnels and 80 kilometres (50 mi) of aqueducts located mainly in theKosciuszko National Park. Snowy Hydro also owns and operates two gas-fired power stations inVictoria and one inNew South Wales, three diesel power stations inSouth Australia and owns two electricity retailing businesses, Red Energy andLumo Energy.
The company is owned by theGovernment of Australia[1] and whilst not a statutory corporation, is established by theSnowy Mountains Hydro-electric Power Act 1949 (Cth). Prior to its incorporation under theCorporations Act 2001 (Cth), the company was previously known as Snowy Mountains Hydro-electric Authority.
The company manages theSnowy Mountains Scheme that generates on average around 4,500 gigawatt hours of clean, renewable energy each year, which was around 37% of all renewable energy in the mainlandNational Electricity Market in 2010.
The company also owns a 300 MW gas-fired peaking power station in theLatrobe Valley, a 320 MW gas-fired peaking power station atLaverton North nearMelbourne, and a 667 MW gas-fired peaking power station atColongra on theCentral Coast ofNew South Wales. It also owns three diesel-powered peaking power stations inSouth Australia providing 136 MW between them.[2] The company's production assets are summarised in the table below. These assets are used to generate electricity for sale under contract to the National Electricity Market.
| Name | Fuel | Type | Location | Maximum Capacity (MW) | Commissioned |
|---|---|---|---|---|---|
| Angaston | Diesel | Internal combustion | Angaston | 50 | 2005 |
| Blowering | Hydro | Francis Turbine | Blowering Dam | 80 | 1969 |
| Guthega | Hydro | Francis Turbine | NearGuthega | 60 | 1955 |
| Jindabyne Dam | Mini Hydro | Turbo-pump | Jindabyne | 1.1 | 2011 |
| Jounama | Small Hydro | Turbo-pump | NearJounama | 14.4 | 2010 |
| Laverton North | Natural gas | Gas turbines | Laverton North | 320 | 2006 |
| Lonsdale | Diesel | Internal combustion | Lonsdale | 21 | 2002 |
| Murray 1 | Hydro | Francis Turbine | NearKhancoban | 950 | 1967 |
| Murray 2 | Hydro | Francis Turbine | Near Khancoban | 550 | 1969 |
| Port Stanvac | Diesel | Internal combustion | Lonsdale | 65 | 2011 |
| Tumut 1 | Hydro | Francis Turbine | NearCabramurra | 330 | 1959 |
| Tumut 2 | Hydro | Francis Turbine | Near Cabramurra | 286 | 1962 |
| Tumut 3 | Hydro | Francis Turbine | Talbingo | 1,500 | 1973 |
| Micro Hydro | Turbo-pump | Talbingo | 0.720 | 2003[3] | |
| Valley Power | Natural gas | Gas turbines | Traralgon | 300 | 2002 |
| Colongra | Natural gas | Gas turbines | Colongra | 667 | 2009[4] |
As part of the company's responsibilities for managing the Snowy Mountain Scheme, Snowy Hydro Limited also collects, stores, and diverts water forirrigation from theSnowy Mountains catchment west to theMurray andMurrumbidgee River systems under what is called theSnowy Water Licence. Granted as part of theSnowy Hydro Corporatisation Act, 1997 (NSW) for fixed five-year terms, this licence prescribes the rights and obligations on the company with respect to the collection, diversion, storage, use, and release of water within the Snowy area. The Snowy Water Licence also imposes some obligations on the company in terms of releasingenvironmental flows east into theSnowy River and other rivers in the Snowy Mountains region.
In December 2005, theGovernment of New South Wales announced it would sell its 58% share in Snowy Hydro, expecting to yield A$1 billion.[5] TheFederal[6] andVictorian[7] governments had followed suit, announcing by mid-February 2006 the intent to sell their 13% and 29% respectively, with A$1.7 billion (ranging up to A$3 billion)[8][9] expectations through apublic float.[7] Pre-registration for shares in Snowy Hydro opened in mid May and it was expected that the float would take place some time in July. Over 200,000 people pre-registered to purchase shares in the company over two weeks.[10]
On 2 June 2006, the Federal Government announced that it would no longer sell its 13% stake in the project, effectively forcing the hands of the New South Wales and Victorian governments to follow suit. The aborted sale followed strong opposition from the public, including government MPs and prominent Australians.[9][11][12]
In February 2014 theNational Commission of Audit recommended in its Phase One Report that the Federal Government sell its interest in Snowy Hydro.[13] In March 2018, the Federal Government bought out the New South Wales and Victorian government shareholdings.[14]
Since privatisation was cancelled in 2006, the company has continued to grow with investment into Snowy Scheme modernisation projects,cloud seeding, development of mini hydro opportunities such as the 14 MW Jounama mini-hydro (commissioned in 2010) and growth of its retailing business, Red Energy. In September 2014 Snowy Hydro purchased gas and electricity retailerLumo Energy for $600 million.[15] Red Energy currently has 1.6 million electricity and gas customers.
In addition Snowy Hydro has developed its gas-fired power station portfolio to reduce risks to the business due to its reliance on water as an energy source, and the potential impact of transmission constraints on the ability of the remote Snowy Mountains hydro generation assets to access the electricity grid.[citation needed] In January 2015 Snowy Hydro acquired the gas-firedColongra Power Station in New South Wales.[16]