- Snowy Hydro of Australia has announced contracting 8 wind and solar power projects adding up to 888 MW
- This capacity will generate close to 2.8 TWh of energy annually on completion in next two years, enough to cater to 500,000 households
- Snowy Hydro didn’t reveal the individual capacities of wind and solar power technologies it has contracted and at what prices; but Lightsource BP says it won 105 MW solar capacity in New South Wales
- Snowy Hydro says it will be able to offer very competitive, firm wholesale prices for below AU$70 ($50.36) per MWh for a flat load, for up to 15 years with the signing of these contracts
Snowy Hydro, a state backed energy retailer in the National Electricity Market (NEM) of Australia, has signed 8 wind and solar power contracts in New South Wales and Victoria, representing a total capacity of 888 MW. All of this capacity is expected to provide clean power to 500,000 households and generate some 2.8 TWh of energy annually.
In May 2018, Snowy Hydro sought expression of interest from developers to sign long term offtake agreements for 400 MW of solar and wind power capacities, each. It received proposals for more than 17.6 GW of projects under the procurement process. The company finally signed up contracts for 888 MW of wind and solar power capacity.
While Snowy Hydro didn’t reveal the share of wind and solar power technologies it has contracted and at what prices, UK based solar power project developer Lightsource BP said it has signed a 15-year PPA with Snowy Hydro in New South Wales and will build the 105 MW ground mounted solar installation fully funded, constructed and maintained by the UK company.
Lightsource said the 105 MW capacity was one of the 8 projects to win across this tender.
All these 8 winning projects are scheduled to come online within the next 2 years, said Snowy Hydro. The Australian company says with these projects, it will be able to offer very competitive, firm wholesale prices for below AU$70 ($50.36) per MWh for a flat load, for up to 15 years.
Sensing the growing role renewables are going to be playing in the Australian energy market, Snowy Hydro is planning for the future and reducing its exposure to high wholesale prices at which it has to buy energy from the market. Renewables will help it cover this shortage in power generation.
“The new renewable energy generation, ‘firmed’ by existing Snowy Hydro assets, is a game-changer and will push down future energy prices. This will bring on significant new energy supply and therefore much-needed competition to the market, and will enable Snowy Hydro to pass on lower wholesale prices to our customers,” said the management.
Snowy Hydro already has a PPA signed with Equis Energy for the 127 MW Tailem Bend solar project in South Australia (see Financial Closure For 127 MW PV In Australia).