Snowy grid backed
A $125 million investment has been made to support Snowy 2.0 grid development.
The Clean Energy Finance Corporation (CEFC) has committed $125 million to help finance the development of grid infrastructure critical to the delivery of the Snowy 2.0 pumped hydro project.
In its first major grid infrastructure investment, the CEFC will fund TransGrid Services to increase the amount of reliable and secure electricity to the National Energy Market (NEM).
The CEFC corporate debt facility with TransGrid Services is part of a complex project to connect Snowy 2.0 to the NEM.
TransGrid Services will draw on the CEFC finance to design, construct, operate and maintain 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.
Snowy 2.0 is expected to offer an important economic stimulus, including the creation of about 4,000 jobs during construction.
It will also support new Renewable Energy Zones in southern NSW, including 1,900 MW of renewables projects in construction or under development, by enhancing security and reliability of supply via Snowy 2.0.
“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,” CEFC CEO Ian Learmont.
“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.
“Snowy 2.0 offers large scale energy storage and quick start electricity generation during peak demand, providing critical security and reliability services to the NEM. We are delighted to be working with TransGrid Services in investing in this exciting project.”