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Some 2 years ago I was pessimistic about Snowy 2.0 and copped lots of criticisms.AEMO data current as of October 2021 shows two generating units in Snowy 2.0 operating for the 2025-26 summer season, 4 operating for the 2026 winter season and 6 operating for the 2026-27 summer. There are 6 generating units being installed in the power station in total.
So as most here now know:
Snowy 2.0 lacks transparency to this day, has experienced massive delays and cost blowouts, and will not be in place when it's first needed - probably this summer based on climate forecasts - if it's needed at all.
On the other hand we now see Arena funding BESS projects with a value of $2.7 billion and a capacity of 2.0 GW / 4.2 GWh to plug into the National Electricity Market. While 2GW is the same generation output of Snowy 2.0 the projects won't have the ability to support long-duration needs. However, we really don't know how much of a duration will be needed to stop-gap intermittency as more and more wind and solar is being added to the grid, as well as home battery storage.
The projects ARENA is supporting include:
- AGL: a new 250 MW / 500 MWh battery in Liddell, NSW.
- FRV: a new 250 MW / 550 MWh battery in Gnarwarre, VIC.
- Neoen: retrofitting the 300 MW / 450 MWh Victorian Big Battery in Moorabool, VIC to enable grid-forming capability.
- Neoen: a new 200 MW / 400 MWh battery in Hopeland, QLD.
- Neoen: a new 200 MW / 400 MWh battery in Blyth, SA.
- Origin: a new 300 MW / 900 MWh battery in Mortlake, VIC
- Risen: a new 200 MW / 400 MWh battery in Bungama, SA.
- TagEnergy: a new 300 MW / 600 MWh battery in Mount Fox QLD.
On the home battery storage front we saw installations linked to solar systems in 2022 grow by 55% (47,100 residential energy storage systems) compared to 2021. The cumulative total number of Australian homes and businesses with solar and batteries hit 180,000 almost a year ago, so we know it's significantly more today as the economics of ownership have since improved. The interesting takeaway from this is that via VPP/DER it would be enough to prevent curtailment in many times that number of households. Should we be asking why we don't have VPP/DER penetration that would allow this, especially as only a small fraction of the over 3.5 million households with rooftop solar have battery storage?
The transition to renewables is inevitable, while Snowy 2.0 is looking more and more like a white elephant that needs putting down. The probable $10B in ongoing future expenditure to get Snowy 2.0 operational for summers 6 years out (will they get that right?) could be better spent.
(I never covered V2L or V2G possibilities which could be mandated for all imported electric vehicles, and which would render Snowy 2.0 an unmitigated economic disaster.)