Question 1

When will this project provide actual relief to the energy grid?

Accepted Answer

Grid stability will not improve in the short term as the project requires a minimum four-year construction timeframe. Technical risks inherent in the 27 km tunnel expansion could further delay the delivery of 2,000 MW in peak load capacity by an additional two years.

Question 2

Is pumped hydro an efficient solution for large-scale energy storage?

Accepted Answer

The process is subject to a 20-30% energy loss during the pumping and generation cycle. However, the project remains economically viable by leveraging the $13/MWh electricity price differential in NSW to provide power for up to 500,000 homes during peak periods.

Question 3

What are the primary risks to the project's success?

Accepted Answer

The $2 billion capital expenditure is contingent on a $500,000 feasibility study scheduled for late 2017. Beyond the initial investment, the primary risks are the six-year potential delivery window and the technical complexity of constructing 27 km of new underground water tunnels.

Question 4

Are there more immediate alternatives to this $2 billion investment?

Accepted Answer

Battery storage and demand efficiency programs offer faster deployment cycles than the four-year minimum build for pumped hydro. These solutions should be tested in tandem with the feasibility study to address the energy crisis before the 2,000 MW capacity comes online.

Snowy Hydro 2.0: Good but not enough?

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Abstract

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