Josh Frydenberg has mentioned recently that Australians are going to face a problem for paying more electricity bills and also more volatile supply in case the project of Snowy 2.0 hydro is not completed. Even when the estimated budget of $2 Bn was not enough for this project and reached between $3.8 Bn and $4.5 Bn, it was still stated as a necessary scheme by the energy and environment minister.
The scheme of Snowy Hydro:
This scheme of Snowy Hydro is going to be equally powerful as South Australia’s big batteries or as the $180 Bn of Tesla power walls. Frydenberg has stated that it is going to be a giant battery that can renew the reliable which will fill the gap of storage in the National Electricity Market. This scheme is going to add to the hydro pumps about 2,000 megawatts of capacity to the existing plants with the storage of about 350,000 MW hours. After completion, it will be able to store energy for whole seven days as its maximum output.
This project mentioned its approximate budget in December and even with the cost that reached near $4.5 Bn, it will still be very much necessary. In this context, Frydenberg has mentioned the quotes from Liberal Party founder Robert Menzies who stated that infrastructure of building a nation will never be cheap. The cost is indeed high but viable since there are necessary negotiations to be done since there are five different rock types and three fault lines involved with this project.
Frydenberg clearly mentioned that they are prepared to sit down with important parties and finish this project as soon as possible. According to the report, Snowy 2.0 Hydro can start operating from 2024 if the construction starts shortly.
What is lacking without it?
Frydenberg stated that without Snowy Hydro project, weak and expensive systems are being used which is unable to store enough energy for the grid. This is what going to push the cause of the upward price of electricity and volatility will continue alongside. He said that this situation of the lack of electricity storage is visible in Victoria and South Australia very clearly. Currently, diesel generators are being used for generating electricity which is both expensive and polluting to the environment. These generators use up to 80,000 liters/hour for creating enough storage for summer only.
Comments connected with this project:
Mark Butler, the spokesman for the Labor’s climate change has mentioned that this project “only makes sense if it is put alongside an ambitious renewable energy program like Labor’s 50% renewable energy target.” He argued that there is an inconsistency in the government’s support for this scheme on one hand and also when they are searching “to strangle renewable energy investment on the other hand.”
Butler mentioned that there is a chance of 95% cut in the renewable energy investment with the guarantee placed on National Energy by the government. He is quite confused about the fact as for why the modeling for this study is yet to release? He is going to visit this project in January and discuss important matters with it. On this matter, chief executive of the Snowy Hydro, Paul Broad has clearly defended this project on Tuesday and mentioned that detailed modeling will be released very soon.