Australia’s leaders have set ambitious targets to ramp up renewable energy usage, and the private sector will be instrumental in achieving them.
Snowy 2.0 is an example of such a partnership in action. The massive pumped-hydro project could become a game-changer for the country’s renewable energy prospects.
However, since such initiatives are incredibly resource-intensive and affect multiple parts of society, government officials will need to work with commercial entities to get these efforts off the ground and help them succeed.
The promise of Snowy 2.0
Snowy 2.0 is a project from Snowy Hydro, a fully Australian-owned company that has become one of the country’s leading integrated energy providers over the past 75 years.
Although its portfolio includes contracted energy with 10 wind and solar projects, Snowy Hydro’s executives expanded that commitment in 2019 by launching construction on the Snowy 2.0 project.
Australia’s largest committed renewable energy project will use 27 kilometres of tunnels to connect the Tantangara and Talbingo dams. This effort also involves the construction of a new underground power station.
This pumped-hydro project operates in a closed system, transporting water to the upper dam during periods of low energy demand when there is a surplus of renewable power produced. However, the liquid returns to the lower dam to generate more energy when needed.
This method of on-demand power allows for the reuse and recycling of the water. Additionally, surplus wind and solar energy move the water between the dams, maximising the dependence on renewables.
This project can store and generate power, and estimates suggest it will add 350,000 megawatt-hours of large-scale storage to Australia’s electricity market. That is enough energy to power several million homes for one week.
Collaboration necessary for success
Although Snowy Hydro is within the private sector, its representatives must work with numerous entities that maintain infrastructure for the public good. Those regular engagements are essential to meet the stated goals for this pumped-hydro project.
In one December 2024 example, Transgrid — which operates and maintains the high-voltage electricity transmission networks in New South Wales and the Australian Capital Territory — sought permission from the country’s government officials to develop HumeLink. It is a nearly $5 billion energy-transmission project to almost double Snowy 2.0’s capacity.
Energy industry leaders indicated that expansion was critical for ensuring this initiative could meet power needs in New South Wales and Australia as a whole.
Another example of external support comes from the Clean Energy Finance Corporation, a government-backed specialist climate investor that had already contributed $125 million to the project as of 2020.
That entity was also a major player in the HumeLink expansion, having allocated $1.92 billion for HumeLink and the NSW component of the Victoria-New South Wales Interconnector.
These examples show why parties working on Snowy 2.0 and other private-sector renewable energy projects must understand the various factors impacting how things proceed.
When additional decision-makers determine whether these efforts receive the necessary funding, regulatory approval, or other particulars, executives within private-sector organisations must skillfully convince those individuals that the renewable energy projects will have far-reaching benefits that become quickly apparent.
Ongoing public engagement can manage situations
Many energy companies have launched customer-facing campaigns to emphasise that everyone must do their part to make a renewable energy future possible. A good starting point is for households and individuals to become more aware of their typical energy consumption and the most practical ways to reduce it.
Fortunately, various technologies and products make that simple. Homeowners can achieve up to 10 per cent energy savings with programmable thermostats.
Many energy providers also offer free apps that show people how their power consumption changes throughout the day or depending on which appliances they use.
That greater visibility reinforces how even small tweaks in lifestyle decisions can reduce strain on the electricity grid.
Interactions with the public are also essential as preparations and construction continue on the Snowy 2.0 project.
Many residents are excited about the potential of increased renewable energy dependence throughout Australia, but that does not mean all of them immediately support the proposed infrastructure.
Some understandably have concerns about how these projects might disrupt their communities or the surrounding environment.
Although government authorities eventually approved the HumeLink expansion to enable Snowy 2.0, some activists raised safety and environment-related objections, including concerns about how the efforts would require clearing the area of trees and vegetation to accommodate the aboveground lines.
Others noted the potential fire risks and mentioned that such visible infrastructure represents outdated technology. However, enquiries revealed it was too expensive to bury the lines.
Even when concerned parties do not get what they advocate for, decision-makers overseeing construction, regulation and other essential aspects must show they are willing to listen to the opposers and investigate possible solutions. Such efforts can manage expectations and keep tempers from flaring.
Lessons to learn and apply
Snowy 2.0 is an undoubtedly ambitious project, giving engineering and construction professionals within and outside Australia much to study as they follow the proceedings.
The coverage so far has highlighted the need for representatives from private-sector companies to engage frequently with all stakeholders and understand that renewable energy projects of this size and scope need widespread support.
Professionals can also examine how the triumphs and pitfalls of Snowy 2.0 so far might impact other projects.
Renewable energy is gaining momentum in Australia, but all such projects require significant and ongoing teamwork and problem-solving mindsets. Additionally, people should remain upbeat even when challenges arise.
These obstacles are virtually inevitable, but overcoming them can prove valuable for showing parties how to tackle similar challenges later.
