Snowyhydro refutes “incorrect claims” about Snowy 2.0

Snowy 2.0
Prime Minister Scott Morrison (right) and Energy Minister Angus Taylor at Snowy Hydro Scheme. The Grattan Institute says the government should better encourage investment rather than build electricity infrastructure. LUKAS COCH/AAP

After recent reports that Snowy 2.0 would not produce as much electricity as it claimed, it would damage areas of national park and that it would cost $10 billion, Snowyhydro has denied the claims.

“We note that the NPA report is not an independent analysis but just a set of random and unfounded assertions which ignore the true facts about this project,” Snowyhydro said in a statement.

“Since construction began 70 years ago – which will be celebrated this Saturday – Snowy has provided the modern foundations of Australia’s economy, and the Snowy 2.0 project will be a bedrock for economic confidence in the future.

“During that time we have been responsible environmental operators in Kosciuszko National Park and will continue to do so.

“The facts are that only 0.01 per cent of the National Park will be permanently impacted by this project – or less than 1 sq km – of the park. As our business and employees work and live in this area, we are committed to rehabilitating the areas affected by the Snowy 2.0 construction.

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The company has also rejected claims that there have been cost over-runs on this project, or “wild figures” being promoted about the total cost of Snowy 2.0.

“Our projected capital cost remain within the 2017 Feasibility Study cost of $3.8 billion to $4.5 billion and was affirmed at the Final Investment Decision December 2018 by Snowy Hydro’s Board, independent advisor Macquarie Capital, two government departments, Finance and Energy and their independent advisor Lazard,” it said.

“It is a falsehood to suggest transmission costs is an added cost to the Snowy 2.0 project as these are shared services used by the power industry, with the new upgraded capacity being essential in managing summer peak demand and transporting wind and solar to market.

“We strongly reject any argument that Snowy 2.0 is not in the national interests. It has demonstrable economic and consumer benefits that have been independently valued at $4.4 to $6.8 billion.”