User:Deucharallen/sandbox

Snowy Hydro 2.0, or Snowy 2.0, is a project associated with Snowy Hydro Limited and the Snowy Mountains Scheme located in the Snowy Mountains, a region in the South-East of Australia. It was announced as an extension on the pre-existing scheme in March 2017 through a press conference held by then Australian prime minister Malcolm Turnbull. It was initially projected to be worth over $2 billion, however more recent figures and estimations have it set to cost significantly more.

The Snowy 2.0 extension of the Snowy Mountains Scheme is being planned for the purpose of creating a renewable and sufficient energy source within the National Electricity Market (NEM), which can both generate large amounts of electricity in times of increased demand and also act as a battery in order to store energy in times of decreased demand. It is a plan that involves using two pre-existing dams, the Talbingo and Tangara dams, and connecting them using a series of tunnels and a power station. Gravity will force the initial movement of the water, powering turbines that will in turn generate cost-effective and renewable energy.

Purpose
The primary purpose of the Snowy 2.0 extension to the Snowy Mountains Scheme is to increase the capacity of the scheme in order to meet future market needs. The pre-existing Snowy Mountains Scheme already has an extremely high capacity, with 33 turbines combining to the tune of a generating capacity of 4100 megawatts of clean renewable energy. In fact, on average, the scheme already produces 4500 gigawatts of energy per year in order to meet peak power demand. However, the Snowy 2.0 extension is designed in order to accommodate for an estimated larger consumption of energy in the future, and also to make sure that a larger portion of the National Electricity Market (NEM) consists of lower emission energy. According to Marsden Jacob Associates, demand for the products that Snowy Hydro produce, including the electricity from the Snowy 2.0 expansion, will only rise in the future while the economy shifts to lower emissions.

The Snowy Hydro 2.0 extension is also designed to act as a battery, in order to store energy for times where there is increased demand. The Australian government had been focused on new and innovative ways to store energy in the event of increased demand, as certain events such as the 2016 South Australian Blackout have caused great distress and also economic strain, to the tune of $52 million in 2016 for South Australian and Victorian governments. A battery such as the Snowy 2.0 extension would have the storage capacity to aid the NEM during periods of crisis such as this, and also be able to generate more clean energy supply to extend the period of reliance whilst the blackout is resolved. The battery aspect of the Snowy 2.0 extension would facilitate a similar need as the Tesla Lithium Ion Battery, currently being designed for the South Australian energy market. Although Snowy Hydro Limited notes that the NEM will require more storage than just the Snowy 2.0 extension, they still believe that it is a cost-effective and environmentally friendly option that will greatly help support the NEM and effectively "fill in the gaps" in energy supply.

2017 Feasibility Study
In 2017, a feasibility study was conducted by Snowy Hydro Limited in order to test the economic and technical feasibility of the Snowy Hydro 2.0 expansion. It drew on the expertise of leaders in fields such as geology, engineering, cost estimation, and economics in order to provide a comprehensive analysis. As a part of the study, leading consultants Marsden Jacob Associates conducted an independent and extensive economic analysis, assessing the scale and location of the project in order to ensure that it is the most cost-effective option for the Australian government in order to support the NEM.

The feasibility report postulated that there were four key benefits to the Snowy Hydro 2.0 expansion; system security and reliability, low prices, scale and location, and renewables. Firstly, the system's "on-demand" energy generation is able to produce energy almost immediately, making it perfect for times of crisis such as blackouts. Secondly, with Snowy 2.0 as a part of the NEM, energy costs will be reduced significantly. Thirdly, the location of the Snowy Mountains scheme means that power produced by the Snowy 2.0 expansion will reach all NEM users and will be particularly fast to reach the Melbourne and Sydney, known as the two major load centres of the NEM. Finally, Snowy 2.0 will enable a lower emissions future as it will underpin NEM stability whilst more intermittent renewables enter the future market.

Plan
The plan itself involves linking the Tangara and Talbingo dams, two dams that already form part of the Snowy Mountains Scheme[3]. They will be linked using underground tunnels and an underground power station, which will have pumping capabilities.

Put simply, the renewable energy will be produced as a result of hydro-pumping through gravity, otherwise known as pumped storage hydroelectricity. This method stores energy as the gravitational potential energy of water, that is pumped from a much lower elevation to a higher elevation. This water is converted into kinetic energy during periods of high demand, as the water is passed through turbines on its way from the higher elevation resevoir to the lower elevation. After the water naturally travels from the upper (Tangara) dam down through to the power station and down to the lower dam (Talbingo), it will then be pumped back up during times of low demand, using the low cost energy from the grid.[12].

Using this theory, the same amount of water can be used to create power over and over again, which makes the extension cost-effective as it is making the most use out of a small portion of water[13]. Snowy Hydro Limited already have the technology to run a hydro pump, as they have these capabilities as a part of the Tumut 3 Power Station, and there are dozens of examples of successful hydro-pumping stations across the world to draw on, such as the Racoon Mountain Pumped Storage Plant.

Controversy
Since the announcement of the Snowy Hydro 2.0 expansion, there has been great controversy over whether or not it will be economically feasible and efficient, whilst some Australian writers question whether it will be completed at all. This controversy tends to be centred around the two major political parties in Australia, the Liberal Party of Australia and the Australian Labor Party. For the most part, the argument is based on predictions as the project's construction has not actually physically begun yet.

The Liberal Party initially brought forward the idea and have been in power throughout its discussion and eventual approval, arguing strongly that the expansion will be extremely efficient and is plausible in terms of how it will fix energy storage problems that the Australian NEM had been facing, with Energy Minister Angus Taylor saying that he is "very confident of the economic case". Upon the point of the announcement of the project, Malcolm Turnbull claimed that the project would "fill in holes caused by intermittent supply and generator outages" and that it will continue to "stabilise electricity supply into the future" for the NEM. Furthermore, they argue that it will fill a hole in terms of rural employment, as the Snowy Hydro scheme has historically provided a wealth of jobs to those in rural communities and the construction, according to statements by Prime Minister Scott Morrison, is set to provide up to 2,400 jobs, whilst the expansion will indirectly or directly support up to 5,000 jobs in the Snowy Mountains area. In general, the Liberal Party has support from individuals who are concerned about the economy and the state of the NEM, with experts, such as Andrew Blakers, saying that without a focus on renewable 'batteries' the NEM will run into "serious trouble in the mid 2020s."

The other side of the argument regarding the Snowy Hydro 2.0 expansion is the Labor Party, who oppose the Liberal Party's proposition that the expansion will be economically effective and argue that it will not benefit rural communities. Advocates for the Labor Party argue that the solution of pumped hydro, a technology that is proven and accounts for 95% of the worlds energy storage linked to energy grid systems, is a "20th century solution to a 21st century problem." The 21st century problem that they refer to, that they feel the hydro pumping technique doesn't solve, is providing constant power regardless of the demand, with the intermittent use of renewables. Furthermore, they feel as though the project may end up being much more expensive than previously planned, as the current projection of AU$5.1 billion is 150% higher than Malcolm Turnbull's initial projection of AU$2 billion. David Leitch, a veteran energy consultant and analyst postulates that the project will end up costing more than AU$6 billion, if it is even completed at all. Labor party supporters also argue that whilst the project may be beneficial in terms of job creation in rural communities, the fact that the profits go entirely to the federal government means that local communities will be unable to reinvest this capital into their local infrastructure. Mayor of Snowy Valleys James Hayes made a statement regarding this, saying that there will be "advantages for businesses" but that he has been "unable to leverage" a portion of the funds generated and wants to be able to "future proof" the community.